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BMW opens $1 billion plant in Mexico

IANS  |  Mexico City 

German automaker AG on Thursday officially opened a $1 billion plant in the central Mexican state of San Luis

"The new plant in San Luis is an important pillar of the Group's global production strategy. We aim to achieve a balance in our production and sales in the different world regions. We want to strengthen our footprint in important and growing markets," Oliver Zipse, of AG responsible for production, said in a statement.

The plant is opening at a time when is facing the threat of possible tariffs from the United States, the country's No. 1 trading partner, the news reported.

"Plant San Luis will significantly boost our regional production flexibility in the From here, we are delivering our locally produced BMW 3 Series Sedan to customers worldwide," Zipse said.

The plant in San Luis Potosi, the capital of the like-named state, is the German automaker's first in

Zipse was joined at the plant opening ceremony by a number of Mexican dignitaries, including presidential and Gov.

"has a key geographical position, situated between North and South America, the Atlantic and the Pacific," Zipse said.

The plant has a vocational training centre in which new employees and trainees will be taught BMW's latest production processes and introduced to the automaker's technology.

Plant management is working with four technical institutes in the area and has already trained 250 people in technical specialties.

Andreas Wendt, of BMW AG responsible for purchasing and supplier network, said the automaker had established strong relationships with Mexican suppliers.

"We have a strong supplier base we can build on in Mexico, having sourced high-quality, technologically sophisticated and innovative products from here for more than 10 years. Every vehicle today already contains at least one part from one of our 220 Mexican suppliers. Our new plant will benefit from short supply routes and the high level of flexibility this gives our supply chain," Wendt said.

BMW said its purchases in Mexico totalled $2.5 billion last year.

The plant is opening at a time when is threatening to impose tariffs on Mexico unless takes action to stem the flow of migrants into the

On May 30, Trump said his administration would impose escalating tariffs on Mexico over the issue of illegal immigration.

Trump said in a post that he would slap a 5 per cent tariff starting June 10 on all Mexican imports unless the neighbouring country halted the northward flow of US-bound migrants.

Trump said the would raise the tariffs on Mexican goods each month until the rate hit 25 per cent in October unless the took action to stop the flow of migrants, the majority of them from Central America, to the US.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, June 07 2019. 04:50 IST
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