Your next BMW could be built in Mexico - New plant in San Luis Potosí

by Tim Jones on July 3, 2014, 1:49 pm
BMWs now made in mexico

The BMW Group will build a new plant in Mexico in close proximity to the city of San Luis Potosí in the state of the same name. This move is in line with the company's clear strategic policy of ensuring globally-balanced growth.
"Mexico is an ideal location for the BMW Group and will be another important plant within our production network. We will invest one billion US dollars in the new production site over the next few years. Production is planned to start in 2019 and during that year, the workforce will reach around 1,500 people," said Harald Krueger, member of the BMW AG Board of Management, responsible for Production.

Highlights
  • BMW declinded to mention what models will carry the 'made in Mexico' label
  • Americas are among the most important growth markets for the BMW
  • Investment of roughly one billion US dollars
  • Capacity of around 150,000 units per year
  • Start of production planned for 2019
  • Work force of 1,500 people
  • Decision underscores BMW's commitment to the NAFTA region

Over the medium term, several thousand jobs will be created on the plant site and in the surrounding area. The company will announce which BMW models will be built at the San Luis Potosí location at a later date.

"This decision underscores our commitment to the NAFTA region. We have been building BMW cars at our US plant in Spartanburg for the past 20 years. With a planned annual capacity of 150,000 units for the new plant in Mexico, the BMW Group will be even better positioned to take advantage of the growth potential in the entire region," Krueger said. "The Americas are among the most important growth markets for the BMW Group. We are continuing our strategy of 'production follows the market'," he continued.

The company made the announcement at the "Los Pinos" Official Residence of the President in Mexico City today. The ceremony was attended by Mexican President Enrique Peña Nieto, Mexican Secretary of Economy Ildefonso Guajardo Villarreal and the Governor of San Luis Potosí, Dr. Fernando Toranzo Fernández.

Mexico as a competitive manufacturing location within the NAFTA region
The large number of international free trade agreements – within the NAFTA area, with the European Union and the MERCOSUR member states, for example – was a decisive factor in the choice of location. Other crucial advantages were the highly-qualified local workforce, a solid network of established suppliers and the well-developed infrastructure. The BMW Group has maintained good relations with Mexican suppliers for many years and purchased products worth 1.6 billion US dollars locally last year.

The BMW Group has operated a local sales company in Mexico since 1994 and sold a total of 13,992 vehicles in the country in 2013. This represents an increase of almost 18.3% over the previous year. Motorcycle sales for the same period reached 2,064 units (+16.6%).

BMW Group investment in the NAFTA area
The BMW Group already announced a further investment of one billion US dollars at its existing plant in Spartanburg, USA back in March of this year. This will increase that plant's annual production capacity to up to 450,000 vehicles by the end of 2016 and make Spartanburg the largest plant in the BMW Group's international production network.
A further 200 million US dollars will be invested to expand the joint venture carbon fiber plant in Moses Lake, Washington. This will triple local production capacity over the long term, making the Moses Lake plant the world's largest carbon fiber manufacturing facility.
The BMW Group will invest a total of 2.2 billion US dollars in the NAFTA region in the period up to 2019.

In parallel, the BMW Group is currently building a plant in the state of Santa Catarina in Brazil. The start of production for the Brazilian plant is scheduled for later this year. With plants in the US, Mexico and Brazil, the BMW Group will have extensive production capacity at key locations in North and South America.


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34 responses to Your next BMW could be built in Mexico - New plant in San Luis Potosí

ghostdog1108 commented:
July 3, 2014, 11:13 pm

Bad,bad,bad idea. Will NEVER buy a Mexican product.
Crom! commented:
July 4, 2014, 11:56 pm

So if I find a half empty bottle of tequila in the trunk could I file claim for diminished value?
gkr778 commented:
July 5, 2014, 12:21 am

"Institutionalized laziness and ineptitude" is a characteristic of Navistar, and certainly not of the automotive sector in Mexico generally. What else is new for a company that was banished from the S&P 500?

I'd wager the work ethic at Navistar's facilities in the U.S. and in Europe is just as horrible or worse compared to their locations in Mexico.
pharding commented:
July 5, 2014, 3:01 am

It sounds like a Navistar problem to me.
mrjoed2 commented:
July 5, 2014, 8:44 pm

Agree with ghostdog - would NEVER accept a BMW made in slimy, corrupt, illiterate Mexico.
tiger16 commented:
July 5, 2014, 8:54 pm

Robots build the cars. Welcome to the Global Economy. I would buy a BMW built in Mexico.
spanishpoet commented:
July 6, 2014, 1:17 am

I would definitely buy a BMW built in Mexico. BMW's excellence in German engineering follow them wherever they go in the world. BMW will be sure to hire Mexico's best.
mrjoed2 commented:
July 6, 2014, 7:50 am

Quote:
Originally Posted by tiger16 View Post
Robots build the cars. Welcome to the Global Economy. I would buy a BMW built in Mexico.
'I have toured the Munich factory. Human beings still do alot of work in building BMW's. From assembling engines to sewing upholstery - to programming those robots properly. It's got to do with craftsmanship and the ignorant Mexicans have none. Let's call this what it is - looking to pay less for labor. I'll buy via European delivery only, so I know I'm getting a German product.
mrjoed2 commented:
July 6, 2014, 7:58 am

Quote:
Originally Posted by spanishpoet View Post
I would definitely buy a BMW built in Mexico. BMW's excellence in German engineering follow them wherever they go in the world. BMW will be sure to hire Mexico's best.
Sorry that German engineering does not automatically translate into excellent craftsmanship by wetback Mexicans, half of which are trying to sneak across our borders.

Do some research on the Lincoln MKZ - Ford decided to save some labor costs and have it built in beautiful Mexico. They have had such horrific quality problems, they set up a facility in the US, whose sole purpose is to go over every car built by the Mexicans and correct the problems. Be a cold day in hell when I buy anything from them if I can help it.
MasterYoda commented:
July 6, 2014, 9:26 am

My next BMW won't be built in Mexico!


Sent from BimmerApp mobile app
MMME30W commented:
July 6, 2014, 8:51 pm

Political commentary is restricted to the Political Science forum.

Posts removed.

You are all adults here, please act like it.

Thanks.
hondo402000 commented:
July 7, 2014, 9:24 am

we should boycott everything coming in from Mexico until they stop the Illegal human trafficing coming across our border

and I too would never purchase a BMW built in Mexico
mrjoed2 commented:
July 7, 2014, 10:54 am

Quote:
Originally Posted by hondo402000 View Post
we should boycott everything coming in from Mexico until they stop the Illegal human trafficing coming across our border

and I too would never purchase a BMW built in Mexico
+1 , good man.
jusmills commented:
July 7, 2014, 12:41 pm

While I understand that most of the opinions expressed on this site are only that, opinions of which you're all entitled to, it is quite disappointing to read some of the disparaging comments that some have made about Mexico. Contrary to popular belief it is not filled with lazy, inept people as the stereotype would have you believe, in fact most are hard working people with the same ethics and concerns that you and I have. It would be great to see that if instead of trying to tear down other cultures based on opinions and media portrayals we actually find out for ourselves. Then we can focus on how we're the same and try to build a good relationships instead of adversarial ones.

Back on point though, in the end, it makes good sense to build BMWs in Mexico. BMW will control quality, just as they do with their Chinese, South African and other markets. In the end, we should consider ourselves fortunate that BMW continues to invest in the NAFTA market. If this helps lower the cost to the consumer I'm all for it. If any company controls their product design and quality well enough, it doesn't matter where the product is built. Those Apple and Samsung phones weren't built in the US, and they weren't necessarily built by a bunch of college-educated folks...
cwsqbm commented:
July 7, 2014, 1:58 pm

Unless I can pickup my Mexican-built BMW in Munich, it ain't happening.
ghostdog1108 commented:
July 7, 2014, 2:11 pm

Quote:
Originally Posted by jusmills View Post
While I understand that most of the opinions expressed on this site are only that, opinions of which you're all entitled to, it is quite disappointing to read some of the disparaging comments that some have made about Mexico. Contrary to popular belief it is not filled with lazy, inept people as the stereotype would have you believe, in fact most are hard working people with the same ethics and concerns that you and I have. It would be great to see that if instead of trying to tear down other cultures based on opinions and media portrayals we actually find out for ourselves. Then we can focus on how we're the same and try to build a good relationships instead of adversarial ones.

Back on point though, in the end, it makes good sense to build BMWs in Mexico. BMW will control quality, just as they do with their Chinese, South African and other markets. In the end, we should consider ourselves fortunate that BMW continues to invest in the NAFTA market. If this helps lower the cost to the consumer I'm all for it. If any company controls their product design and quality well enough, it doesn't matter where the product is built. Those Apple and Samsung phones weren't built in the US, and they weren't necessarily built by a bunch of college-educated folks...
I agree, to a point, with everything you point out but a political system friendly to us; no way, therefore no '*****um' Mexican products if I can help it.
CFGenius commented:
July 9, 2014, 1:48 pm

This is the model that all premium luxury Brands are going. Mercedes and Audi both plan to have plants built in Mexico as well. Remember that some of the best craftsmen and leather makers/stitchers are in Mexico.
amancuso commented:
July 9, 2014, 2:25 pm

My 2014 VW Jetta was built in Mex. It's a fine car and has so far given me 0 problems in 10,000 miles of driving, including a 2000 mile round trip. I wouldn't hesitate to buy one built there. That being said, the price of new BMWs is ridiculous so I don't see that being an issue for me in the near future.
mrjoed2 commented:
July 9, 2014, 5:02 pm

Quote:
Originally Posted by CFGenius View Post
This is the model that all premium luxury Brands are going. Mercedes and Audi both plan to have plants built in Mexico as well. Remember that some of the best craftsmen and leather makers/stitchers are in Mexico.
You got to be kidding on the best craftsman line - try Germany & Italy. The only thing Mexico is know best for is their bad water.
AzNMpower32 commented:
July 9, 2014, 6:03 pm

Would make sense to build the 3er and potentially the 5er in MX. Mercedes will shortly build the C-Klasse in Alabama, and Audi is setting up to build the Q5 in MX as well. VW Group already has an engine plant in Silao building engines for MX-assembled vehicles, and pretty much everyone else in the automarket has a Mexican plant (Honda, Toyota, Nissan, Fiat, Mazda, etc.....)
Itinj6 commented:
July 9, 2014, 6:20 pm

Not sure where everyone is getting their lazy comments from. Don't know about where all you live, but here in NYC, Mexicans have the best work ethic I have ever seen. They work 15 hour days, most of them multiple jobs, in the nastiest work environment (dirty, no A/C) for way less than minimum wage. How many people here would be able to do that every day and stay focused on making their living by these means? I can't believe the amount of prejudice in this thread. Shameful. I am way less than impressed by the quality of my Germany and USA built BMW's. BTW, corruption is everywhere.
mrjoed2 commented:
July 9, 2014, 11:48 pm

Quote:
Originally Posted by Itinj6 View Post
Not sure where everyone is getting their lazy comments from. Don't know about where all you live, but here in NYC, Mexicans have the best work ethic I have ever seen. They work 15 hour days, most of them multiple jobs, in the nastiest work environment (dirty, no A/C) for way less than minimum wage. How many people here would be able to do that every day and stay focused on making their living by these means? I can't believe the amount of prejudice in this thread. Shameful. I am way less than impressed by the quality of my Germany and USA built BMW's. BTW, corruption is everywhere.
Hope you had a chance to see the O'Reilly factor on Fox tonight. He had lots of info on Mexico being activity involved with getting the tens of thousands of illegal alien kids up from Honduras, Nicaragua, El Salvador, Ect . The incredibly corrupt Mexican Gov't is doing NOTHING to stop the flow of illegals coming thorough their country right into the US. Every American should be outraged about what is happening. We are over 17 TRILLION in debt and Obama & the liberals wants billions more to take care of illegal south Americans? And the endless violence, drug wars & trafficking , turf wars, killings ect, are off the charts. I'm sorry, the Mexicans you see in NYC are not the same as in that country. This is not prejudiced just facts. And, go to any European country and see if you can just walk across the border.

On the car issue , beside what many believe is a quality deficit with Mexican made products, ( hope you heard about the Ford nightmare with Mexican build Lincoln MKZ's) and personally on simple principal, I WILL NEVER buy a product made in Mexico.
As O'Reilly said, America should boycott Mexico (travel & products) until they control their borders. And I am very impressed with the quality of the 2 German cars I have owned)
Itinj6 commented:
July 10, 2014, 12:31 am

Quote:
Originally Posted by mrjoed2 View Post
Hope you had a chance to see the O'Reilly factor on Fox tonight. He had lots of info on Mexico being activity involved with getting the tens of thousands of illegal alien kids up from Honduras, Nicaragua, El Salvador, Ect . The incredibly corrupt Mexican Gov't is doing NOTHING to stop the flow of illegals coming thorough their country right into the US. Every American should be outraged about what is happening. We are over 17 TRILLION in debt and Obama & the liberals wants billions more to take care of illegal south Americans? And the endless violence, drug wars & trafficking , turf wars, killings ect, are off the charts. I'm sorry, the Mexicans you see in NYC are not the same as in that country. This is not prejudiced just facts. And, go to any European country and see if you can just walk across the border.

On the car issue , beside what many believe is a quality deficit with Mexican made products, ( hope you heard about the Ford nightmare with Mexican build Lincoln MKZ's) and personally on simple principal, I WILL NEVER buy a product made in Mexico.
As O'Reilly said, America should boycott Mexico (travel & products) until they control their borders. And I am very impressed with the quality of the 2 German cars I have owned)
Nope, didn't catch it. I have zero interest in politics. Politicians are like diapers. They're all full of sh!t and need to be changed often. I don't understand what all the above has to do with opening a plant in Mexico though. You're judging every Mexican and that's called prejudice. I'm sure there are hard workers there too. Perhaps opening up plants and thusly, jobs will decrease the amount of crime there and the need to illegally cross borders. Guess what? Those illegal Mexicans are doing the jobs that Americans don't want to do at a salary that an American would probably be ashamed of. They're trying to make a living without committing violent crimes. I see a lot of Americans collecting welfare on my hard earned money and they don't want to do sh!t, besides commit violent crimes on the side. You think corruption is limited to Mexico? More advanced Governments just hide it better.

Apparently you skipped the part about all the very successful cars made in Mexico. However, I hope you heard about the F10 M5 and F12/13 M6 nightmare with the oil pumps.

HPFP problems anyone? Drivetrain Malfunction? The list goes on...
mrjoed2 commented:
July 10, 2014, 1:01 am

Quote:
Originally Posted by Itinj6 View Post
Nope, didn't catch it. I have zero interest in politics. Politicians are like diapers. They're all full of sh!t and need to be changed often. I don't understand what all the above has to do with opening a plant in Mexico though. You're judging every Mexican and that's called prejudice. I'm sure there are hard workers there too. Perhaps opening up plants and thusly, jobs will decrease the amount of crime there and the need to illegally cross borders. Guess what? Those illegal Mexicans are doing the jobs that Americans don't want to do at a salary that an American would probably be ashamed of. They're trying to make a living without committing violent crimes. I see a lot of Americans collecting welfare on my hard earned money and they don't want to do sh!t, besides commit violent crimes on the side. You think corruption is limited to Mexico? More advanced Governments just hide it better.

Apparently you skipped the part about all the very successful cars made in Mexico. However, I hope you heard about the F10 M5 and F12/13 M6 nightmare with the oil pumps.

HPFP problems anyone? Drivetrain Malfunction? The list goes on...
It has nothing to do with opening the plant- it has to do with do we want to support a Gov't and country that is openly screwing us over. In all fairness - come on- are you comparing Mexico where there is open warfare in the streets, drug gangs taking over cities, while the officials are on the take looking the other way. Look how they are treating our US Marine who made a wrong turn down their while moving, he had his guns in the car. Guy is going through hell, jailed for over 3 months without even seeing a judge. If I was Pres, I'd send down a squadron of Apache AH-64's and get him out by force.

And the numbers don't lie- just through the first 6 months of 2014, approx 50,000 south American illegal alien CHILDREN came up through the entire country of Mexico, and over our borders. Projections for 2015 are 140,000. You may not care about politics but does not change the crisis. And the US being the world suckers we are, take care of them instead of instant deportation. They are not working. They are a financial drain and overwhelming our border states. As much as I dislike welfare, food stamps ect -at least they are Americans receiving them - not ILLEGAL aliens.

And VW has been in the quality basement for many years. And surprise- many are made in Mexico . No car is perfect, especially something as high tech as a BMW. You want problems? talk to GM- recalled 29,000,000 this year. I'll always take the German made car over one made in Mexico , USA or China for that matter.
pmwhitehead commented:
July 11, 2014, 4:58 pm

I concur with the group. I had a 2001 VW Jetta 1.8t that I believe (fact check here) was built in mexico. I really loved that car in its aesthetics always, and its performance - when it wasn't in the shop. I spent my early adulthood stationed in Germany, and I really came to love virtually everything about the culture and their products, but my Jetta was a POS.
RDL53 commented:
July 11, 2014, 5:36 pm

The cars from Mexico will be appropriately renamed:
Bavarian Mexico Werken:D
mrjoed2 commented:
July 11, 2014, 6:00 pm

Quote:
Originally Posted by RDL53 View Post
The cars from Mexico will be appropriately renamed:
Bavarian Mexico Werken:D
Yeah would not surprise me if the Mexicans forgot the motor altogether !!
UnderEstimated commented:
July 11, 2014, 6:16 pm

It's crazy to read about the prejudice and racial slurs about Mexicans. I owned a 2007 Ford Fusion, built in Mexico and had 107K problem-free miles on it before I traded it in.

While I can only speak on behalf of the Ford plant in Hermosillo, there were 3K+ US citizens working at the plant. The first cars out of the plant (Fusion, Milan, Zephyr, MKZ) all won initial quality awards. After looking into the recent Lincoln MKZ quality issues, it turns out that many MKZs weren't properly inspected because Ford was unable to keep up with the dealer demand. Is that because of the race/nationality of the person or because of a decision Ford made? We're there manufacturing/engineering problems? Sure, but that's not the fault of the plant and its employees. Remember, if a car is designed and engineered well, it'll assemble well.

But it takes me back to the initial comments in this thread...Why didn't the other vehicles coming out of the same plant experience the same issues, if they're all incapable, inept Mexicans?

That said, would I buy a BMW from Mexico? Probably not if I could avoid it, as I've spent a lot of time in Germany and it's a little piece of Germany back at home for me. I almost bought a BMW assembled in South Africa, but specifically wanted a Munich-made 335.

Do German's do it best? No, not at all. They're great small-medium business companies. You will never see a Apple, Samsung, Sony, etc. type business in Germany. They fill an important role in the industry.

We're all adults, we all love BMWs and with that, we accept a flaws and deficiencies with our vehicles. Germans know that they over-engineer things and with that opens a whole other can of worms...
ProRail commented:
July 12, 2014, 7:14 pm

Quote:
Originally Posted by mrjoed2 View Post
Sorry that German engineering does not automatically translate into excellent craftsmanship by wetback Mexicans, half of which are trying to sneak across our borders.

Do some research on the Lincoln MKZ - Ford decided to save some labor costs and have it built in beautiful Mexico. They have had such horrific quality problems, they set up a facility in the US, whose sole purpose is to go over every car built by the Mexicans and correct the problems. Be a cold day in hell when I buy anything from them if I can help it.
If they are still in Mexico there is no way they could be called wetbacks. Think a little bit before you submit derogatory posts.
blossi commented:
July 14, 2014, 2:55 pm

This is bad news to me, I don't think that I will ever see "BMW" the same way. If, I'm not mistaken, Volkswagen has been doing this for quite a few years; the only model that I heard that was still built in Germany was the "Passat". I don't think that I would buy any Volkswagen. BMW you have disappointed me......And I bet you are still going to charge $100,000.00 for a car.......That's the reason why I don't buy Nike tennis shoes or, any brand that I hear that are made in sweat shops.....Nike's cost for a pair of tennis shoes is $1.00 maybe....and when that same shoe comes into the U.S. the price is $150.00 come on.......give me a break.....

BimBruno
John Davis commented:
July 14, 2014, 3:06 pm

BMWs have been made in South Africa since 1968; do we have reason to believe that South Africans are better at precision assembly work than Mexicans?
blossi commented:
July 14, 2014, 3:55 pm

The point that I'm trying to make here is......."Not that Mexicans aren't capable of producing good quality......" the point is...what the company (BMW) is going to be saving in wages to make the product, yet.....all of the money that they will be making in selling it to the consumer.....And the small head aches of the product not being made correctly.....yes.......
John Davis commented:
July 14, 2014, 4:19 pm

Quote:
Originally Posted by blossi View Post
The point that I'm trying to make here is......."Not that Mexicans aren't capable of producing good quality......" the point is...what the company (BMW) is going to be saving in wages to make the product, yet.....all of the money that they will be making in selling it to the consumer.....And the small head aches of the product not being made correctly.....yes.......
Well, I agree with you there. When companies shift production overseas they seem not to pass the savings on to us. That's one of many reasons I prefer to buy American, even if the foreign-made product is just as good.
UnderEstimated commented:
July 14, 2014, 9:37 pm

Quote:
Originally Posted by John Davis View Post
Well, I agree with you there. When companies shift production overseas they seem not to pass the savings on to us. That's one of many reasons I prefer to buy American, even if the foreign-made product is just as good.
Although a good portion of our domestics are no longer made in 'America'. Well, I guess you can say they're made in 'North America'. My Edge was built in Canada and my Fusion was built in Mexico. However, my wife's '13 Focus was assembled here.