BMW begins construction of $1bn Mexican plant for 3 Series
BMW has started building a new factory in San Luis Potosi, Mexico, investing $1 billion to produce up to 150,000 3 Series saloons per year from 2019.
BMW has broken ground on its new manufacturing plant in San Luis Potosi, Mexico, confirming a $1 billion investment to build 3 Series saloons for global markets from 2019. The facility is expected to produce up to 150,000 vehicles annually, strengthening BMW’s North American production base.
The move aligns BMW with other major carmakers expanding in Mexico, such as Ford and Audi, who have also announced new plants in the country. Mexico’s combination of lower labour costs and tariff-free access to the US market has made it an attractive location for global manufacturers. The new BMW plant will join the company’s existing production network, which includes its Spartanburg, South Carolina facility focused on X models, and the Rosslyn plant in South Africa.
Why BMW chose Mexico for its next plant
BMW first announced the Mexican project in 2014, citing the need to balance production across continents and reduce exposure to currency fluctuations. The San Luis Potosi site offers access to skilled workers and established supplier networks. It also gives BMW flexibility to supply both American and global markets efficiently, especially as trade agreements allow Mexican-built vehicles to enter the US without tariffs.
BMW’s investment follows a broader trend among premium and mainstream manufacturers, with Mexico attracting new facilities from the likes of Ford and Audi. The company’s move comes as it expands its Spartanburg, South Carolina plant to an output of 450,000 units per year, cementing its US presence while diversifying production. For more on Ford’s plans, seeFord to Build a New Car Plant in Mexico Sources Say.
Production plans and local impact
The San Luis Potosi plant will focus on the 3 Series saloon, BMW’s best-selling model worldwide. The company said the new facility will complement output from its other plants and help balance global demand. BMW has operated a sales company in Mexico since 1994, and local deliveries have risen steadily, with over 17,000 vehicles sold in 2015. The new plant is expected to create jobs in the region and strengthen the local supply chain.
