BMW AG and Hyundai Motor Co. are mulling building new plants in Mexico, according to Economy Minister Ildefonso Guajardo. The minister told Bloomberg in an interview that the Mexican government has held discussions with BMW and Hyundai, adding that at least one of the carmakers may soon announce plans for a new assembly site in the country in 2014.
Any new site from BMW or Hyundai would give Mexico its first new vehicle factory since April 2012, when Audi AG unveiled plans for a $1.3 billion plant it commenced building this year to assemble the Q5. A BMW or Hyundai site is expected to further boost Mexico's auto industry, which has continued to expand this year despite a slowdown in the country’s economic growth.
Japanese carmakers Nissan Motor Co., Honda Motor Co. and Mazda Motor Corp. are currently building new sites in central Mexico, while US auto companies Ford Motor Co. and General Motors are spending more to increase their production.
Meeyoung Song, a spokeswoman for Hyundai, said the South Korean automaker “currently has no plans to build a plant in Mexico. Vehicle production in Mexico surged 4.4 percent in the first eight months of 2013 to 1.99 million vehicles, according to the Mexican Automobile Industry Association.