BMW to invest $1 billion in Mexico

You should not be surprised to find that some of the parts that make up your beloved new SUV i.e. BMW X5, X6, and the soon to be announced X3 are made in Mexico.

The latest from Auto news has it that BMW is set to make a sizable investment close to about $1 billion on Mexican suppliers. These Mexican partners of the BMW would build a number of parts for the German manufacturer’s new line of sports cars. Several reasons are quoted for these intentions of the company.

Foremost of all reasons as to why the BMW has decided on knocking into a new market is the relatively cost effective labor rates compared to both the US and German markets. Another reason that is being attributed to this move of the company is the intention to keep the spare parts production facility geographically nearer, in Mexico, to the company’s production facility in South Carolina where the SUVs are being produced. By doing so the company intends to lower its production cost by about $5 billion in two years time. It makes a very obvious reason for the German manufacturer, the BMW, intents to infuse about $1 billion into Mexico.

Source: topspeed