On 6 June 2019, a new plant of the automobile manufacturer BMW was opened in San Luis Potosí. The project, which was already announced in 2016, cost several billion US dollars and will produce the BMW 3 Series in the future. The first factory in Mexico will also provide over 2,000 jobs. Even the construction of the plant has already employed 4,400 people in recent years. The new plant will produce up to 175.00 cars per year and supply North and South America.

Mexico as a location factor

According to Alexander Wehr, 2019 will be a big year for BMW Mexico, as the new plant will make many new logistical and strategic goals possible. The car manufacturer started sales and distribution in Mexico 25 years ago. Suppliers will consist of approximately 200 local, small and medium-sized companies. However, a certain proportion of the delivered goods will be sourced from large and international companies. Mexico is the main sales market in Latin America, not only in terms of sales but also in terms of potential compared to other Latin American countries. Despite the potential, the majority of the vehicles produced are exported to the USA and not sold domestically.

No worries about customs

However, due to the current political situation with the USA and the imminent tariffs on products from Mexico, BMW is not worried and does not regard the upcoming activities as endangered. “We also pay tariffs in other countries” is the general attitude of the company. “We do not see any reason to abandon the plan” are other comments from senior management. BWM is continuing to make strategic use of the San Luis Potosí plant location and thus further expand production flexibility.

From San Luis Potosí, BWM will now be handling the global demand for the BMW 3 Series Sedan. with many new jobs, it will become an attractive employer in the region.