BMW is going to build a plant in Mexico
- In 2013, BMW's global production reached 2 million units (including Mini and Rolls Royce). This production is distributed over 15 plants worldwide, 4 in Germany (55% of world production of BMW) and only 1 in the USA.
- While the top three global markets by volume for BMW are the USA (425 000 units), China (362 000 units) and Germany (265 000 units), the models produced for these markets come mainly from Germany (44% of BMW production is exported from Germany). In order to better allocate the production in the world and move closer to its main markets, BMW has announced the construction of a new plant in Mexico.
- This plant, will be located north of Mexico City (in the state of Hidalgo) and will start production in 2017, it will have a capacity of 200 000 units. BMW has not yet announced which models will be produced there, but we can imagine that it will be models that are very successful in the U.S. (the main export area for the future plant), models that are currently produced in Germany. It would hence be the Series 3 and Series 5, the Mini or the X1. These four models were sold at over 270 000 units in the U.S. in 2013. In addition to the U.S., the models produced in Mexico will be exported to South America, but also sold locally, whereas Europe will not be receiving any.
- BMW's strategy follows that of other Premium German manufacturers that have also announced the production launch in Mexico, by 2015 for Mercedes (Aguacalientes) and Audi (San José Chiapa). In 2014, Mexico will produce 3.2 million vehicles (PC+LCV), ranking it ahead of Brazil. By 2020, the Mexican production will reach between 3.5 and 4 million units per year.
Contact us: info@inovev.com