b.m.w. opens its 1st plant in mexico but the timing couldn't be worse it could find itself caught in the middle of a us back to go trade fast. and more car news fear chrysler pulls the brakes on a virgin or with renault ending a deal that could reshape the global auto industry. also donald trump by threatening china with even more tariffs beijing says will fight to the end. this is the the way of business i'm. on in berlin welcome b.m.w. has opened its 1st factory in mexico a 1000000000 dollar project meant to produce up to 175000 vehicles and really but thursday's inauguration of the son luis puts the plant couldn't have come at a worse time washington's threat of tariffs on backspin exports still hangs in the

air but b.m.w. says its full speed ahead for its expansion plans in the country. b.m.w. has embraced his plans to turn out 175000 cars annually from its new mexican plant beginning in 2020 at least that was the intention before us president donald trump threatened mexico with punitive tariffs despite the celebrations his threat loomed over the sun luis potosi factories inauguration the terrorists would hit mexico's automobile sector worst of all there are fears they could lead to a sharp decline in car sales last year b.m.w. was able to increase its sales by 18 percent but this year the german car maker expects sales growth to come in at a more modest 5 percent so we will keep our plans and we will see how far that goes and as it did for our production it is flexible but at this point in time it would not see any reason to change our current trends the new. realty will be b.m.w.'s

most modern and most flexible it will make the 7th generation of the 3 series it will create 2 and a half 1000 jobs here and hundreds of other companies are expected to be drawn to the region as things develop the entire region stands to profit from the investment when i got when the entire automotive supply industry moves in here will all stand to gain in cent always put to sea we have an export volume of $15000000000.00 a year and we wanted to increase by one and a half to $2000000000.00 a year with b.m.w. . wages in the region are generally lower than those paid by nissan invokes wagon business information network bloomberg says the starting rate for an assembly line worker here is a dollar and 10 cents an hour that's roughly what other mexican manufacturers pay but it's also only 110th of what their colleagues in the united states earn the wage rates were agreed with workers unions as long ago as 2014. when you

signed a collective bargaining agreement which mainly serves employers' interests with little attention paid to workers' needs these are the rates you get and when production gets going they have no chance of demanding anything more. than is the bin they don't know when they're going to have those kind of agreements are illegal in countries like germany and the us in mexico they've meant that working conditions and wages remain at low levels. it's off before they could even get their engine started italian american group for yet chrysler wanted to build one of the world's biggest carmakers by merging with france's rhino but fear it abruptly pulled out blaming the french government for the talks collapsing. it was meant to be a match made in heaven with multiple synergies together feared cries there and run a would shake up the world car market both firms are set to benefit hugely from the

landmark deal now it's dead in the water run as most successful markets are in europe and emerging markets but it hasn't sold in the world's 2nd biggest market the u.s. for decades that's where few cries their strengths lie few cries it was also hoping to profit from leno's expertise in developing autonomous and electric vehicles the newly merged entity would have been well positioned to compete with the world's biggest players. the world number one votes like and sold over 10800000 cars last year followed by toyota with 10500000 autos emerged cries and red 0 would have come in 3rd place with 8700000 cars without a merger crys there is an 8th place with 4800000 cars and red always in one place. chrysler's decision to withdraw its proposal came as a surprise the rental board said it needed more time to consult on the merger but feed cries or feels the french government which owns 50 percent of renato

interfered in the process because are said to monsoon paris including guarantees that already know plan some jobs in france would be preserved led to the deals collapse. joining us now is our financial correspondent on wall street dance card the high end now if guaranteeing jobs in france would have helped the deal move forward why didn't fear chrysler do just that when companies merge usually they're looking for a synergies meaning cost cuts and that often does go along with job cuts but that might not be the only reason why fewer chrysler called the merger talks i'm all for it if you look at 3 no it's a pretty complicated construct miss on the french government are involved and they're also had been some reports that the french governments for instance to vote on all flip flopped on some of the issues so those also might have been some

reasons why this merger is not happening at this point ok so streamlining being key but what's been the response of the called off merger talks where you are. well the big question is from the us pretty perspective what will happen to chrysler now it is a rather complicated environment on one side sailed some in the us are stagnating and on the other side costs are increasing because of investments into immobility or also for driverless vehicles so we will wait and see if either of chrysler might be looking for a new partner to expand globally overall the stock of chrysler has been under quite some pressure for a while since early 22018 the stock almost got caught in the hof but then on the other side if you look at trends atlantica mergers in the u.s.

go or in the car industry overall this have not always been a success story just think back what happened to the merger off a diner and chrysler so who knows maybe all those carmakers sort of better off alone than to get it against car to there on a major merger that didn't happen thank you very much u.s. president donald trump has said that he'll decide after the g 20 summit whether to slap tariffs on another $300000000000.00 worth of chinese goods that's later this month it sets the stage for a showdown with chinese leader xi jinping when it takes place china has signaled readiness to fight. wherever donald trump makes an appearance there's always one key question what is the likely outcome of this trade wars especially with china on thursday the president threatens to more than double u.s. import tariffs on chinese products. our talks with a lot of interesting things to happen they were what happened in the meantime we're

getting 25 percent or $250000000000.00 and i get to go up another at least 300000000000 dollars and i'll do that at the right. but i think you're going to want to make you feel badly the chinese response wasn't long in coming. from the united states continues to willfully escalate tensions we will fight to the end from. beijing says it's commerce ministry's poised to take retaliatory measures if the united states decides to escalate the conflict tensions between the world's 2 largest economies have mounted since the last round of trade negotiations collapsed at the beginning of may and neither of the 2 appears willing to result the conflict quickly. ford says it's not about drugs it the few seem to believe it the car manufacturer is closing its massive engine plant and bridges and wales next year 1700 jobs are to be affected but it's not just employees who are

worried or jens that local economy is closely tied to the plant and its workers meaning it will take a hit to. dear knighted kingdoms exit from the european union is set to have a major impact on britain's economy in the southern welsh town of bridge and halfway between cardiff and swanzy the effects of bricks that have begun to impact local residents the problem of employees know from other people so the whole that i thought i think the whole economy which understands. this is before a lot of independent businesses in this town who rely on their own see it would have to settle for the trees the birds and the drones the plant opened its doors in 1980 and has provided more than $3000000000.00 to the welsh economy over the last decade a contribution that locals and the welsh government are sure to miss. with james it isn't in the. south and the flight path of the key is to go over such there is a back up again and this is the 270 despite the possibility of

a no deal bracks it looming on the horizon ford is blaming the plants closure on changes in customer demand and cost concerns. if international monetary fund has upped its u.s. growth forecast for the current year to 2.6 percent up from the previous estimate of 2.3 percent is the financial market conditions provided the boost but i.m.f. managing director christine lagarde warned again of growing risks to the global economy like the us china trade dispute rising debt levels and worsening inequality the i.m.f. also said u.s. growth would slow again to just 2 percent and 2020. the european central bank has taken surprise action to bolster the 19 nation euro zone e.c.b. chief barrio druggy says the bank will extend the earliest date for an interest rate increase from the end of the year to halfway through next year bench made good benchmark rates are at record lows the e.c.b.

follows other central banks and responding to fears about trade tension and going. and that's it from the end. business human berlin thank you very much for watching .

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. it's 1900 women's. political the results here on d w. this is the w. news africa coming up in the next 15 minutes the effects of climate change on africa i kid you all to see on in kenya where changing rainfall odds and make it difficult for head is to feed your livestock an op has been developed to help farmers find the right place for the animals to graze even though some of the possum is not to do.