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
-
Is The V8 Dead?
Tougher fuel economy standards may be the end of most V8s.
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.
