BMW’s $1 Billion Bet on Mexico (Reuters)
Last week, luxury car maker BMW announced a $1 billion Mexican plant investment to become the latest major automaker to take advantage of the country’s growing industrial base and tariff-free access to the US market. Specifically, BMW outlined plans to build a factory in the central Mexican city of San Luis Potosi that will help the German company reduce its dependence on higher-cost plants at home.
The plant will begin assembling models in 2019 with an initial workforce of 1,500 and annual production capacity of 150,000 vehicles. It has not been revealed which vehicles will be built at the plant but several Mexican and European officials at the presentation last week said they believed the plant would produce 3 Series cars.
BMW’s move comes days after Daimler announced new Mercedes production in Mexico with partner Nissan Motor Co Ltd, which already operates two plants in the country where it had recently increased capacity.
To read the whole article, BMW’s $1 billion plant surfs Mexican investment wave, go to the website of Reuters.
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