| 1 MINUTE READ

BMW Opens Mexico Assembly Plant as Tariffs Loom

BMW AG formally opened a factory in Mexico to make its best-selling 3 Series sedans for North American market and more than 40 other markets worldwide.
#BMW #facilities #americas

Share

Facebook Share Icon LinkedIn Share Icon Twitter Share Icon Share by EMail icon Print Icon

BMW AG formally opened a factory in Mexico to make its best-selling 3 Series sedans for North American market and more than 40 other markets worldwide.

The $1 billion facility in San Luis Potosi will employ 2,500 people and has capacity to make 175,000 vehicles per year. BMW says the plant was designed to respond quickly and flexibly to shifting volumes and new model variants.

BMW notes that Mexico, a signatory for the updated version of the 25-year-old North American Free Trade Agreement, also has free trade deals other major markets, including the European Union and South America’s MERCOSUR trade bloc.

LMC Automotive estimates that the 5% tariff the Trump administration threatens to impose on Monday for all goods from Mexico would hike the retail cost of a car made at San Luis Potosi by at least $2,000.

If the tax rises to 2% by October as Trump warns, the cost would surge to $10,000 or more, enough to shut down the plant. the global automotive forecasting service says.

RELATED CONTENT

  • The Frame of The Future?

    Revised safety standards, tighter fuel economy requirements, and cost pressures are forcing wholesale change to current light truck body-on-frame designs. The Auto/Steel Partnership’s Lightweight SUV Frame project has a strong contender for this frame of the future.

  • Chevy’s ZR2, Ford’s Apple Pick & More

    The forthcoming Chevy Colorado ZR2 is designed and engineered to be able to handle off-road situations of all types with aplomb.

  • Nissan Versa Sedan 2.0

    Nissan rolls out with a new sedan on a new global platform for the competitive compact car market.