BMW Confirms Future Investment Plan for Mexico Facility

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With the newly-elected Donald Trump as President of the United States, a lot of changes have been also announced in the auto industry, changes that seemed not to favor the most important players in the branch, like BMW, Mercedes-Benz or Audi.

And the below statement was a direct hint at the warnings coming directly from the Oval Office, according to which BMW would have to change its policy concerning its plans of investing lots of money into its new facility in Mexico.

Despite the warnings, BMW Group has recently declared that it will become loyal to its initial investment plan in Mexico, stating: “We need free world trade”.

As a reminder, BMW is set to finish a new construction in Mexico, which is part of the Group`s $1 billion plan. However, these plans were initially shattered by new elected President, who declared that he will introduce heavy chargers for all cars imported in the United States. The Group`s investment plan in Mexico will go hand-in-hand with the current expansion of the Spartanburg plant in the US.

With the Spartanburg currently being the widest factory worldwide, BMW Group needs to expand its capacities overboard, choosing as the closest solution a new facility in Mexico. The plan was also confirmed last month by Dr. Ian Robertson, BMW board member:

“We need additional capacity, so we have chosen to build a plant in Mexico,” he said. The Spartanburg plant produces up to 450,000 cars per year. I don’t think there’s any discussion that BMW is not at home in the United States. Yes we are building a plant in Mexico,”

“Yes we built a plant in Brazil last year. Yes we are building plants in other parts of the world as our capacity increases. But that’s part of a normal strategic manufacturing direction.In a global setup, this is normal business. At the end of the day, our commitment to the U.S. is strong,” Robertson also added.

The new Plant in Mexico will drastically reduce the production costs, but this situation does not seem to favor the new policy from the White House.

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Eduard Huma

https://www.bmwcoop.com