BMW considering a New Plant in Mexico

Reuters reports that BMW will unveil this week plans to build a new factory in Mexico, a government official said, as the company seeks to meet growing demand for premium cars. A spokesman for Munich-based BMW said earlier on Monday that “a decision will be made public” on July 3.

A new factory in Mexico would come on top of BMW’s plans to invest on expanding their capacity by 50 percent at its plant in Spartanburg, South Carolina, since the low wages give the company a lot of cost-savings.

BMW Chief Executive Norbert Reithofer said last week that the Bavarian carmaker was still deliberating about where to locate a new factory and would reach a decision before the summer break.

Supplier sources said BMW had already mapped out a production timetable for Mexico, with a tentative plan to begin assembly in late 2017, ramping up annual capacity to 200,000 by 2020.

The car making industry in Mexico is soaring, with Daimler and Nissan announcing similar plans to open plants there.