New BMW site in Mexico will have capacity to build 150,000 annually

Article by Andrew Christian, on July 4, 2014

BMW’s new vehicle site in Mexico could produce up to 150,000 units per year, a source told Reuters. A government official in Mexico remarked that BMW would likely invest at least EUR1 billion ($1.36 billion) on the site, adding that it would be located either in Hidalgo state or in San Luis Potosi. BMW is considering building its new front-wheel-drive vehicles in Mexico, according to a report by Automotive News in 2013.

One of the models underpinned by the fwd platform will be the new Mini and the next 1 series due in 2017. Handelsblatt reported in May that BMW may produce 3-series and 1-series cars and possibly Mini models at a new plant in Mexico.

Mexican production of the 3-series would enable the German luxury carmaker to price the sedan more competitively against the Mercedes-Benz C class, which is being built at Mercedes’ in Vance, Alabama, for the US market.

Producing the 1 series compact model and Mini in the Mexican site will allow the carmaker to offset lower margins typical of smaller vehicles, Handelsblatt said.

Daimler and the Renault-Nissan Alliance recently announced a EUR1 billion ($1.36 billion) for development of small cars and for constructions of a plant in Aguascalientes, Mexico.

BMW rival and fellow German carmaker Audi is currently building a site in San Jose Chiapa, Mexico, which will have the capacity to build 150,000 vehicles annually. It will be tasked to build the Q5 SUV starting 2016.

Mexican production allows carmakers from Europe to sell cars in the US while effectively escaping from some currency and tariff costs that usually eat into profits on imported vehicles. Likewise, Mexico boasts of having lower labor rates than Germany and the US.

Topics: bmw, mexico, plant

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In 2007, when Nissan first introduced the R35 Nissan GT-R at the 2007 Los Angeles Auto Show, the car carried with intense power and a price tag of $78,000. Up...
by - September 29, 2016
Bentley Motors has just released the specs of the new Bentayga Diesel. Obviously, we couldn’t wait to share it here since it’s the first ever diesel model to come out...
by - September 26, 2016
A big chunk of Volvo Cars’ legacy in developing the most durable and capable car is evident in its latest Cross Country collection. Suffice it to say, our planet has...
by - September 21, 2016
Just very recently, we were all delighted to finally see a Bugatti Chiron out in the streets casually hanging around Cannes in France. The said car was purchased by a...
by - September 9, 2016
Earlier this year, Aston Martin wowed the world with a stunning concept car – the Vanquish Zagato. The concept made its first appearance in May during the Concorso d’Eleganza Villa...
by - September 7, 2016