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]

Topics: bmw, mexico, plant, investment

If you liked the article, share on:

Comments

Recommended

The BMW 7 Series is already highly sought after but nonetheless, the German marque is giving it a more exclusive variant for the Russian market, and they are calling it...
by - October 20, 2017
Several automakers including Porsche, Volkswagen, Smart and even Land Rover have all been victimized by cheap Chinese copycats. And if you haven’t seen it yet, the most recent one would...
by - October 20, 2017
The Mercedes-Benz G-Class has been around for quite some time now but to bid it farewell, the company has launched the Mercedes-AMG G65 Final Edition. Mercedes will only build a...
by - October 20, 2017
Have you ever wondered what you can you buy with $9,365 in your pocket? Well, you have quite a lot of options. In fact, you can even purchase a used...
by - October 20, 2017
The Audi A7 Sportback, whether you would like to call it a sportback or a four-door coupe, has always been a beautiful car. And this week, the 2019 model year...
by - October 20, 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