BMW mulls building a new assembly site in Mexico

Article by Anita Panait, on August 19, 2013

BMW is considering expanding manufacturing footprint in North America by building a new assembly site in Mexico. According to Ludwig Willisch, chief executive of BMW of North America, the carmaker is holding preliminary talks with "local governments" in Mexico on the possibility of constructing a factory in their districts.

Willisch told Automotive News that before BMW decides to build vehicles in Mexico, other developments need to occur first, the top priority of which is a free-trade agreement between the United States and Europe. A free trade between the US and Europe would provide BMW with the flexibility and cost structure to expand its North American manufacturing base. W

illisch remarked that BMW won't commit to another site in North America plant until a free-trade agreement is in place, which usually takes a long time to be signed. He added once a free-trade agreement is in place, there would be more substantive talks between BMW and Mexican authorities.

Willisch said that a Mexican site could start producing new BMWs within 10 years from now. The carmaker is getting ready its new $261-million Santa Catarina site in Brazil for launch next year. BMW’s Spartanburg site in South Carolina took just 23 months from groundbreaking to launch output of its first 318i, making it the fastest factory startup in automotive history.

Thanks to Mexico’s advantageous trade agreements with other North and South American countries, low wage, and manufacturing costs, as well as an increasingly skilled workforce and strong supplier base, global carmakers have been increasing their investment in the country.

For instance, Audi is building a site in Mexico while Daimler is assessing whether to produce Mercedes-Benz cars in the country. Japanese carmakers Honda Motor Co. and Mazda Motor Corp. are also currently constructing sites in Mexico. [source: automotive news - sub. required]

Topics: bmw, mexico, plant

If you liked the article, share on:

Comments

Recommended

There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 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