Munich/Budapest — BMW is building its first factory in Europe in nearly two decades, strengthening its footprint close to home as growing protectionism adds to the cost of shipping cars around the globe. The car maker is investing €1bn in a new production plant in Hungary to produce 150,000 vehicles annually, according to a statement released on Tuesday. It will be BMW’s first new manufacturing facility in the region since 2000, when it built a site in Germany, a spokesman said. BMW, like other global car makers, is under pressure to adjust to shifting global trade politics that are undermining a decades-long move to lower barriers. Depending on what type of cars the company will build in Hungary, the plant could help offset growing risks. Making sport utility vehicles in Europe would help insulate BMW from rising trade tension affecting its US plant. It could also add flexibility to counter interruptions to the flow of Mini cars, made in Oxford, England, to the European Union after...

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