How luxury car brands will make money off the Trump tax crackdown
Lifestyle brands like BMW, Mercedes, Audi and Jaguar are already among the most profitable brands in the US, with revenues from their US operations reaching $2.2 trillion.
They also have some of the biggest market shares, and they are not going away.
But Trump’s proposed tax hike on luxury cars will hit them harder, as it will take away a tax break for the US.
If a luxury car is bought in the UK, for example, its sales tax will rise from 25% to 35% when it’s sold in the USA, making it an even greater loss for a luxury brand.
The luxury car industry is a $10 trillion business, according to Lux Research, and the Trump proposal will hit a lot of them hard.
The US luxury car market is estimated to be worth $8 billion a year, and some analysts say it’s on track to surpass the value of the auto industry in 2019.
“It’s a huge loss for the luxury car makers, because if you look at the US market, we have a very strong luxury car sector and we have an excellent supply chain,” said Stephen Calkins, senior research analyst at consumer consulting firm FBR.
“If we lose this tax break, it’s going to hit them hard.”
Trump’s proposed 35% tax on luxury car sales will also make it harder for luxury brands to find investors.
Lux Research estimates that only 3.6% of luxury brands would be able to raise money in the first year after the tax hike takes effect.
And if the tax hikes take effect, only 10% of these brands would have a source of financing to fund their luxury car projects.
The US luxury automobile market is expected to be valued at $10 billion in 2019, and there are already some major players in the market.
Audi and Mercedes are two of the largest luxury car companies in the world, and their luxury models are sold in more than 60 countries.
In 2017, Mercedes and Audi made more than $10.4 billion in sales, according the research firm Lux Research.BMW is the largest brand in the luxury vehicle market.
It sells a variety of vehicles in the U.S. and Canada.
BMW, which has more than 5,000 employees in the United States and Canada, is the world’s largest automaker and employs more than 9,000 people.
BMW has about 4.5 million U.s. employees.
It also has a substantial global presence, with sales in Germany, Japan and South Korea.
Mercedes-Benz, which makes the Mercedes-class luxury sedan, sells more than 10 million cars worldwide.
It has a large presence in Europe, the Middle East, Africa and Asia.
“This will be a blow to our luxury car business in the long term, and it’s an even bigger blow to BMW in the short term,” said BMW CEO Harald Krueger.