BMW to spend $1 billion to build new site in San Luis Potosi, Mexico

Article by Christian A., on July 6, 2014

BMW is planning to invest $1 billion to build a site in San Luis Potosi, Mexico that could produce around 150,000 units annually and have a 1,500-strong workforce. Production operations are bound to start in 2019, disclosed Harald Krueger, BMW board member for production.

Krueger said in a statement that the new site, along with BMW’s plant in Spartanburg, South Carolina, underscores the carmaker’s commitment to the North American Free Trade Agreement region. He noted that the Americas are among the most important growth markets for the BMW Group, adding that the carmaker is continuing its strategy of “production follows the market.”

The disclosure comes after rival Daimler and Renault-Nissan announced plans to build a $1.36 billion site in Aguascalientes, Mexico, to produce compact vehicles for their Infiniti and Mercedes-Benz brands.

BMW’s announcement was done at the residence of President Enrique Peña Nieto of Mexico. He was joined by Secretary of Economy Ildefonso Guajardo Villarreal and the governor of San Luis Potosi state, Fernando Toranzo Fernández.

According to BMW, large number of international free trade agreements of Mexico was a decisive factor in the choice of location. BMW also said that it chose Mexico due to the quality of the work force, a supplier network the carmaker has been sourcing parts from, and infrastructure.

Krueger remarked BMW has already reached initial agreement with worker representatives in San Luis Potosi. BMW has over 100 suppliers in Mexico, Krueger said, adding that there will be more supplier opportunities in the future.

Andreas Klugescheid, corporate and government affairs head of communications for BMW's production network, told Automotive News that supply sourcing in Mexico reached $1.61 billion in 2013. [source: BMW]

If you liked the article, share on:

Topics: bmw, mexico, plant, investment

Comments

Recommended

The Chinese market will soon be getting the exclusive China-only model, Mercedes-Benz GLC-L, for a premium of 15,000 yuan ($2,300) more than the regular model. The difference is actually quite...
by - January 20, 2018
The Bentley Bentayga is set to participate in the famous Pikes Peak International Hill Climb that is slated to take place on June 24th in Colorado. The automaker’s motorsport department...
by - January 19, 2018
Infiniti will commence sales of the new 2019 Infiniti QX50 in the spring, with a starting price of $36,550. But before the big launch, Infiniti has introduced a new reservation...
by - January 18, 2018
BMW fans may be surprised with what the car manufacturer’s boss Robert Irlinger said in a recent interview with Autocar during a recent media meeting. And this is the fact...
by - January 18, 2018
Currently, there aren’t any Lexus convertibles out in the market, but it seems like it won’t be too long until we see one again. This is because Toyota’s premium brand...
by - January 18, 2018
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