Mexican Media Brands
BMW Opens Mexico Assembly Plant as Tariffs Loom
BMW AG formally opened a factory in Mexico to make its best-selling 3 Series sedans for North American market and more than 40 other markets worldwide.
#economics
Share
BMW AG formally opened a factory in Mexico to make its best-selling 3 Series sedans for North American market and more than 40 other markets worldwide.
The $1 billion facility in San Luis Potosi will employ 2,500 people and has capacity to make 175,000 vehicles per year. BMW says the plant was designed to respond quickly and flexibly to shifting volumes and new model variants.
BMW notes that Mexico, a signatory for the updated version of the 25-year-old North American Free Trade Agreement, also has free trade deals other major markets, including the European Union and South America’s MERCOSUR trade bloc.
LMC Automotive estimates that the 5% tariff the Trump administration threatens to impose on Monday for all goods from Mexico would hike the retail cost of a car made at San Luis Potosi by at least $2,000.
If the tax rises to 2% by October as Trump warns, the cost would surge to $10,000 or more, enough to shut down the plant. the global automotive forecasting service says.
RELATED CONTENT
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
On Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.
