BMW opens new Mexico plant
The factory will build the 3 Series sedan.
BMW's newest production plant, located in San Luis Potosi, Mexico, is officially open for business. BMW held an opening ceremony at the plant to mark the occasion earlier on Thursday.
BMW spent $1 billion on the San Luis Potosi, which already has 2,500 employees. BMW will initially build its popular 3 Series sedan at the plant, but the facility is flexible enough to add other vehicles in the future. The plant has an annual capacity of 175,000 units.
"The new plant in San Luis Potosi is an important pillar of the BMW Group's global production strategy,” said Oliver Zipse, member of the Board of Management of BMW AG responsible for Production. "We aim to achieve a balance in our production and sales in the different world regions. We want to strengthen our footprint in important and growing markets. Plant San Luis Potosi will significantly boost our regional production flexibility in the Americas. From here, we are delivering our locally produced BMW 3 Series Sedan to customers worldwide.”
Unfortunately for BMW, the timing of the plant opening isn't ideal. President Trump has threaten to impose a 5 percent tariff on all goods imported from Mexico if the country doesn't take steps to better control illegal migration. The 5 percent tariff, which would increase the price of a 3 Series sedan by $2,000-$2,500, is scheduled to go into effect on June 10.