BMW May Build Small Cars in Mexico

By | May 15, 2014
To accommodate an increase in demand, BMW may build Minis, 1 Series, and 3 Series cars at a new plant in Mexico. BMW has long said that it is looking for a new plant in North America to reduce import costs and boost profits on low margin vehicles. The German newspaper Handelsblatt recently reported BMW executives favor Mexico as the new location for the plant. A final decision on the matter is expected to come in the second half. However, a BMW spokesman told Automotive News Europe that the entire report was just "speculation." BMW may end up following in the footsteps of Audi, Honda, Nissan, and a number of other automakers entering Mexico. The company may choose this spot because it already has a production facility in the U.S. If it added a plant in Mexico, BMW would raise its North American production capacity to 600,000 vehicles, Handelsblatt reported.
Currently, BMW builds a number of SUVs at its plant in Spartanburg, S.C., and it plans on expanding production there to include the X7. With this addition, BMW will increase its annual capacity by 50 percent to a total of 450,000 vehicles in the U.S. The automaker also produces Mini cars in Oxford, England and is expanding Mini production to the Netherlands. Source: Automotive News Europe