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by WILL FOLKS
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A week ago, we published a report on the disappointing economic data and stiff global headwinds confronting German automaker BMW – and the massive reduction in force stemming from its recent downturn.
As we noted in our report, the company’s net profits plummeted 35% year-over-year to $1.4 billion during the second quarter of 2026, while its revenues slipped by 7.8% to $35.85 billion, according to its latest financial statement (.pdf). Those declines have sparked concerns that the huge job losses the company is dealing with in Germany could soon lead to lost jobs here in South Carolina – where BMW has built cars since 1994.
The Palmetto State’s key role in BMW’s global manufacturing chain was reinforced last month when the company announced the completion of its latest $1.7 billion investment in South Carolina – which consisted of a $1 billion expansion of its Spartanburg facility and the construction of a new $700 million manufacturing plant in Woodruff, S.C., where batteries for its new line of fully electric vehicles will be built.
BMW currently employs more than 11,000 workers in South Carolina – and Palmetto politicians expected that number to increase when they approved tens of millions of dollars in incentives tied to this recent expansion in 2022.
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Now, company officials are said to be warning those same politicians that unless things change, they will be cutting jobs – not adding them.
BMW leaders in the United States have sought meetings with numerous South Carolina elected officials over the past few months warning them the company’s situation in the Palmetto State is “quit dire” – and that they will be left with “no choice but to do a reduction in force” if things remain as they are. One official we spoke with warned BMW executives were considering “temporarily idling production” in the Palmetto State as a result of these dire straits.
These same officials have also cautioned South Carolina leaders – most of whom are obsequiously subservient to U.S. president Donald Trump – that they will be forced “to let shareholders and the public know why” they are slashing domestic jobs.
And why is that? Trump’s tariffs…
Earlier this year, Automotive News estimated Trump’s tariffs had cost global automakers “at least” $35.4 billion during the first year of his second administration – listing BMW among the companies whose tariff losses exceeded $1 billion.
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RELATED | A WARNING SIGN FOR SOUTH CAROLINA’S ECONOMY
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BMW has been in negotiations with the Trump administration over the impact of these tariffs, reportedly reaching an “agreement in concept” to help the company mitigate its losses. That agreement has yet to be effectuated, however, and South Carolina recently lost its most influential voice in Washington, D.C. when Lindsey Graham passed away suddenly on July 11, 2026.
Graham attended an event at BMW just nine days before his death – reportedly pledging to advocate for the company with Trump.
“BMW chose South Carolina thirty years ago, and by having faith in our state and workforce, it has built the most successful partnership in the BMW family,” Graham said at the time.
So far, BMW has made no public announcements regarding a potential reduction in force – or the potential idling of its South Carolina operations. In fact, the company is supposed to commence assembly operations at its Woodruff facility in December of this year and launch its new fully electric iX5 in early 2027.
Keep it tuned to FITSNews as we track developments tied to BMW’s global woes and how they could potentially impact South Carolina’s economy.
BANNER VIA: GETTY IMAGES
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ABOUT THE AUTHOR…
Will Folks is the founding editor of the news outlet you are currently reading. Prior to founding FITSNews, he served as press secretary to the governor of South Carolina. He lives in the Midlands region of the state with his wife and eight children.
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