“NAFTA will provide about 23 per cent of BMW’s global vehicle supply in the new decade”
BMW will likely make smaller front-wheel drive cars and Minis at its new plant in Mexico, which will also allow it tariff-free access to the U.S. market and Europe.
BMW’s expected announcement that it would spend about $1 billion on a 150,000 a year capacity plant in Mexico came days after similar news from Daimler and Nissan. Late last month Daimler and Nissan announced they would build a €1billion, 300,000 a year plant to build cars including small Infinitis.
The BMW plant will start production in 2019.
“The Mexico production will increase capacity to 600,000 in NAFTA (Mexico, U.S., Canada) by 2020,” IHS Auto in a report.
BMW has already announced production at its Spartanburg, South Carolina plant will rise to 450,000.
“Investing in production in Mexico enables a lower-cost production base that benefits from free trade agreements,” IHS Auto said.
“BMW’s annual global production will increase to 2.59 million in 2019, up from 1.84 million in 2013, setting NAFTA up to provide about 23 per cent of BMW’s global vehicle supply in the new decade. Of the global production figure, 86.4 per cent is forecast to be of BMW-branded vehicles and 13.4 per cent MINIs. Although the product range has not been confirmed, there are rumours that the new plant will build variants of BMW and MINI products, which would infer it be a home to vehicles on the company’s new front-drive platform,” IHS said.
BMW expects to meet is target of selling more than two million cars this year, BMW sales chief Ian Robertson said at a meeting in South Korea.
BMW sold 1.96 million vehicles in 2013, and 1.02 million in the first half of 2014, up seven per cent on the same period last year.