BMW’s 3-Series Mexico Plant Is Officially Under Construction

By Tony Markovich - June 20, 2016

bmw_mexico_plant

BMW is investing heavily in North America. In addition to the $1 billion that its putting toward updating the Spartanburg, South Carolina plant, the Germans have officially started work on the brand new plant in San Luis Potosí, Mexico. With sales continuing to rise in the continent, BMW wants to ramp up production to meet demand.

The move centers around the 3-Series, the best-selling BMW vehicle in North America. If all works out according to plan, the 3-Series will get a new design in 2018, and in 2019, the plant will be completed and open for building the that model. BMW is expecting to pump out about 150,000 cars per year. The technicians, who are already being trained, will strictly be building the car, while the actual parts will still be produced in different countries.

Here’s a look at the future layout of the campus:

plant_layout

The campus will be about 300 acres and feature a body shop, a paint shop, and the assembly building. According to BMW, it will also be “BMW Group’s most resource-efficient production location worldwide,” getting a huge chunk of its energy from solar power, while cutting water usage and reconditioning and recycling waste water.

BMW’s plan continues the trend of manufacturers moving production to Mexico. This is largely in part to lower labor costs. According to Automotive News, BMW also got $236 million in “local aid” in exchange for helping to create 1,500 jobs and investing $1 billion by 2024. And BMW won’t have to pay state or local taxes for the next 10 years, which will save millions.