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BMW Wants To Build EVs In Mexico
May. 31, 2022 12:11 PM ET by Chris Teague Electric Vehicles / 1 Comment The automaker's South Carolina facility is nearly at capacity. As auto manufacturers navigate the transition to electric vehicles, many are wrestling with outdated production facilities and, in some cases, an overall lack of production capacity. BMW is facing some of those challenges now. Despite a $100 million investment, its South Carolina production facility is running at full speed, and with new EVs coming, the Bavarian automaker needs a place to build them. BMW's factory in San Luis Potosi, Mexico, fits the bill and could become a significant North American EV production hub. Automotive News reports that the facility will handle production of the 3 Series electric sedan and new iX3 crossover starting in 2027, with the crossover starting first and the sedan following later in the year. BMW invested $1 billion in the facility, which employs 3,000 people. The automaker currently manufactures the 3 Series Sedan, 2 Series Coupe, and will eventually, build the M2 at the plant too. BMW BMW BMW BMW The company aims to shift half its global sales to EVs by the end of the decade and is well on its way there, so Americans will likely see new electric models in the near future. It's not yet clear if BMW will further expand the plant's production responsibilities. The automaker currently offers the i4 and iX EVs here in the United States, both of which are built in Germany. BMW Group CEO Oliver Zipse sees a growing role for the plant, saying that "Mexico will play an important role in our complete set. At some point in time, you will see X models because the market demand is so high." The facility opened in 2019 and has an annual production capacity of 175,000 vehicles. There's room for more at the plant, though, because it operated at just 39% of capacity last year. BMW BMW BMW BMW That said, the automaker is looking to use the plant better. Beyond EVs, BMW's Mexico facility will become an essential cornerstone of its gas vehicle production efforts. BMW will soon move production of one of its most popular vehicles there. The X3 will move from the automaker's overworked plant in Greer, South Carolina, to the 741-acre San Luis Potosi plant. BMW is not the only major automaker moving EV operations south of the border. Ford builds the Mustang Mach-E at its Cuautitlan, Mexico plant and has confirmed that at least one more EV will come from the location. General Motors invested $1 billion in its Mexican facility last year, where it builds batteries and other components. BMW BMW BMW BMW Source Credits: Automotive News Join The Discussion
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