BMW to open new factory in Mexico despite Donald Trump's warnings
Jan 10, 2017 07:42 AM EST
BMW is determined to build a new manufacturing plant in Mexico sometime in 2019 regardless of President-elect Donald Trump’s warnings for companies to pay higher border tax on automobiles imported from the neighboring country.
According to BMW’s sales and marketing head Ian Robertson, the German carmaker will stand by its plans to establish a new factory in Mexico. In an interview with CNN, Robertson had shed light on the company’s manufacturing expansion needs.
Despite having the world’s biggest BMW factory in Spartanburg, South Carolina, BMW is still in need of opening a plant outside of its U.S. base.
"We need additional capacity, so we have chosen to build a plant in Mexico," he said.
The factory in South Carolina is capable of producing a maximum of 450,000 automobiles annually. At least 370,000 of these cars are sold in the United States while the rest serve as exports.
"In a global setup, this is normal business," Robertson added. "At the end of the day, our commitment to the U.S. is strong."
BMW already began work on the new Mexican factory located in San Luis Potosi, which is set to create the BMW 3 Series Sedan. The new plant is expected to bring about approximately 1,500 new work opportunities. BMW operates over 30 manufacturing plants in 14 countries all over the world.
Trump already made his stand clear on policies regarding the import of cars made in Mexico. The President-elect plans to put a tariff on all vehicles made and imported out of Mexico and are sold in the U.S.
In particular, several major automakers have been mentioned by Trump, including Ford, General Motors, and Toyota. Ford recently got rid of its plans to create a new factory in Mexico worth $1.6 billion. According to CEO Mark Fields, it had been an independent decision and no special agreements were made with the incoming President.
Acknowledging Ford’s public decision, Trump took to Twitter and replied with a tweet of thanks.
"This is just the beginning - much more to follow," he tweeted to Ford.