Just a week after Infiniti and Mercedes-Benz confirmed plans to build cars at a new plant in Mexico, BMW has confirmed that it will do the same. BMW’s Mexican plant will be located in the state of San Luis Potosi and will start building cars in 2019. It will have a capacity of 150,000 units annually and will cost $1 billion to establish.
BMW hasn’t said what models it will build at the plant, though it’s previously been reported that the automaker was considering building its 3-Series in Mexico for sale in American markets. Another possibility would be compact cars like those from MINI and any BMW models that share a platform with the models from MINI.
BMW says the move is in line with its clear strategic policy of ensuring globally-balanced growth. The benefits of Mexican production are numerous. They include access to good infrastructure, competitive cost structures and lucrative trade agreements with the U.S. The move also helps to hedge against currently fluctuations and aid logistics.
The new plant will be in addition to BMW’s existing American plants including the Spartanburg, South Carolina facility, which has been building cars for the past two decades, and an existing motorcycle plant in Brazil. BMW has also started construction of a car plant in Brazil which is expected to be operational later this year.