BMW Breaks Ground on Mexico Plant

BMW AG says its new factory in San Luis Potosi, Mexico, will build next-generation 3 Series sedans when it goes into production in 2019. The company broke ground for the $1 billion plant earlier today.

The facility, which is BMW’s first in Mexico, will have capacity to make 150,000 cars per year. The factory complements the company’s 22-year-old production complex in Spartanburg, S.C., which supplies some 450,000 crossovers annually to global markets.

BMW currently builds the best-selling 3 Series in Germany and South Africa. The latter facility will drop car production and begin making the X3 small crossover when the Mexican plant opens.

The company says about 70% of the cars it makes in Mexico will go to the North American market. Last year 3 Series sales in the U.S. fell 7% to 94,600 unit, according to Autodata Corp. Year-on-year volume was down 27% through the first five months of 2016.

The company says the 300-acre San Luis Potosi complex will the the company’s most environmentally friendly facility anywhere. Highlights include solar power, a paint shop with zero wastewater and the lowest water consumption per vehicle of any BMW assembly plant.