BMW is not fazed by Trump’s threats, will continue construction of solar-powered plant in Mexico

Article by Christian A., on January 17, 2017

As BMW continues to pursue its plans for the coming years, President-elect Donald Trump gave out a warning to car manufacturers to prevent them from exporting their cars to the US all the way from Mexico. Bottom-line: The President of the United States is bent on imposing a border tax of as much as 35% for non-locally manufactured vehicles.

It was earlier reported that German carmaker BMW plans on increasing its yearly production capacity by up to 150,000 units in the next two years. In relation to this, the company is currently expanding its production facilities by investing at least $2.2 billion for its new plant in San Luis Potosi in Mexico.

According to his own tweet, the new US President will be imposing a “big border tax” to General Motors and Toyota Motors unless they made plans to build their plants in the US. Trump has also been wary of what other German car manufacturers such as Volkswagen and BMW have been up to recently.

The US President-elect had spoken with German newspaper and said that it would be better if BMW had built its new production facility in the United States. All the same, Trump lauded Germany for the great cars they have produced just like the Mercedes Benz but he also thinks that the business relationship is not a fair one, considering there aren’t as many Germans that patronize the US-made Chevrolets.

Despite the warning, it does look like BMW is not stepping back and putting a stop to the construction of its new Mexican factory. This was confirmed by Peter Schwarzenbauer at a recent meeting held in Munich, Germany. In short, BMW is going to continue building its new production facility in central Mexico complete with sections for assembly, painting and body shop.

The Potosi plant will be the company’s most energy efficient production facility since most of its electricity will be powered by a solar system. Similarly, its water consumption is expected to be the lowest out of all the facilities and its paint shop is designed to produce zero waste. This target can be achieved by recycling and reconditioning the water during the painting procedure.

In response to the issue, BMW says that the company is in fact “very much at home” in the US. At the moment, the Bavarian marque has about 70,000 US personnel under its wing. The soon-to-open plant in Mexico would only be an addition to the company’s current production facilities already located in China and in Germany. The Mexican plant is where the company plans to manufacture the next generation BMW 3 Series intended for global export beginning 2019.

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Topics: bmw, mexico, donald trump

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