BMW Group may build Minis at a new site in Mexico

Article by Christian A., on May 20, 2014

BMW Group may decide to build Minis at a site in Mexico, alongside BMW 3-series and 1-series cars, according to Handelsblatt. BMW chief executive Norbert Reithofer has remarked that the carmaker will require a new site in North America to be able to cater to increasing demand for its vehicles.

So far, however, BMW has yet to announce whether the site would be located in Mexico or in the United States. The German carmaker has also yet to announce which vehicles it would produce at the new site.

According to the German newspaper, BMW executives prefer Mexico over the US for production of Minis and its smallest BMW brand vehicles since they are lower margin vehicles, so assembling them locally would increase profits.

Handelsblatt, citing company sources, has reported that BMW’s supervisory board will decide on the plant in the second half of 2014. A BMW spokesman told Automotive News Europe that the report was "mere speculation."

BMW is aiming to increase its production in North America to save costs linked to importing smaller yet lower-margin models, which would burden profitability no thanks to a strong euro. BMW is currently expanding the annual capacity at its Spartanburg site in South Carolina by 50 percent to 450,000 vehicles to add production of the X7 large SUV.

A new site in Mexico would increase BMW’s production capacity in North America to 600,000 vehicles, Handelsblatt said. The carmaker is currently producing Minis at its Oxford site in the United Kingdom, but the plant is already using its full capacity of around 260,000 units per year. [source: automotive news - sub. required]

Topics: bmw, mini, mexico, production

If you liked the article, share on:

Pin It

Comments

Recommended

Reddit user Jdubbswrx spotted a rather deceptive move coming from the German automotive manufacturer Audi. He posted an image of the supposed exhaust of the new 2018 Audi SQ5 sporting...
by - March 29, 2017
McLaren car owners will be thanking the automotive company as it has decided to roll out new goodies for the 540C, 570S and 570GT sports car line-up. From this series...
by - March 29, 2017
On July 11, Audi is set to reveal its flagship luxury sedan, the all new A8. And at this moment, none of us are sure how this model will look....
by - March 29, 2017
The recent Porsche 911 is definitely considered one of the most elite sports car to grace the roads worldwide. The task of producing its successor is challenging enough for the...
by - March 29, 2017
British startup Zenos, which entered bankruptcy administration earlier this year is now back in business. The Norfolk-based sports car manufacturer was bought by a consortium of investors headed by AC...
by - March 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries