Hoovey689

iTrader: (16)

BMW pondering 3 Series assembly in Mexico

BMW is strongly considering adding a North American production facility in Mexico. That's according to an Automotive News report, which says the German automaker is looking at four potential locations for a new assembly plant to produce the 3 Series.

BMW officials say that tax breaks and incentives have made areas like the north-central Mexican state of Queretaro a top contender for the home of the 3 Series sedan and the next generation front-wheel drive 1 Series.

BMW's first North American plant, its Spartanburg, South Carolina facility, started with 40,000 to 50,000 units annually and has increased as the years went on. According to the report, the proposed Mexico plant would start similarly and eventually grow to 100,000 to 150,000 units annually.

For comparison's sake, while Mercedes-Benz will bring production of the C-Class to to Vance, Alabama in 2014, Audi has opted for Mexico for its first North American plant. According to the report, Audi admits Mexico's lower wages were a draw compared to the U.S.

U.S. production of BMW is still significant, and there's no reason to think that if a new Mexico plant were to come online that any production would be taken away from the German automaker's stateside operations. BMW built over 275,000 vehicles in the United States in 2011. That's a jump of 75 percent from 2010, and it's only set to grow. BMW says that the plant is set to produce over 300,000 this year.

http://www.autoblog.com/2012/08/06/b...bly-in-mexico/

LexFather

Audi is moving A6 production there. Makes sense from a production standpoint.

Blackraven

Yeah does make sense from a financial/economic standpoint.

However
What about quality/reliability?

I'm not looking down on the capabilities of the Mexican labor force. I know they can build cars (i.e. examples of these are the VW Beetle and some of their Sentra vehicles even reach here in my country). It's just that the Munich factory is the home of BMW and the heart of 3-series production for decades. It's also the leading factory of BMW and the highest possible quality/reliability of a BMW comes first-and-foremost from cars made there. In short, the Munich factory sets the standard for any BMW vehicle that is manufactured.

I guess we'll just have to see.......

Hoovey689

iTrader: (16)

^ yeah not that I'd doubt their manufacturing capabilities, but as part of owning a 3-Series the nostalgia is owning one from Munich

08IS350

So there is going to be Mexico delivery? Picking up from factory, Driving around mexico and come back

GS3Tek

iTrader: (8)

What does it matter if it's a 3 year lease???

Obviously, new owners won't be able to do the ED delivery then right?

bitkahuna

iTrader: (20)

poll: how would CLers feel if toyota/lexus did this?

Hoovey689

iTrader: (16)

Not that it would matter much, but I guess between a RX built in Japan ex. JHTB vs one in Canada 2T2, I'd take the Japanese one if I could

Blackraven

No offense to Canadians here in this forum..................but personally, I too would take a Lexus RX that is made in Japan instead.

DustinV

The BMW 3 series has been made in South Africa for RHD markets for at least a decade now and the quality and production standards are equal to if not even superior to the ones in Germany. Ask the people in the UK, Japan, Australia and other RHD markets that get them.

I don't see why shifting some production to Mexico should be a problem from a quality point of view. All it takes is a modern production facility and a trained workforce. BMW just isn't going to recruit a bunch of average Mexicans off the streets to produce these cars. The workforce will be carefully selected based on a number of criteria and possibly a certain education level.

chikoo

tacos, beans and dos equis for the new car smell

LeX2K

No offense taken, I feel the same way.

I8ABMR

I feel the same way. I think I would rather my German car be made in Germany and my Japanese car made in Japan. In the global market economy this is going to change. I am one of the buyers who would be turned off.

LexFather

Oh I agree in theory but its extremely clear people don't care since most consumers are not enthusiasts.

I guess my point is after seeing production of German cars and SUVs move out of Europe, buyers don't care. Most are not enthusiasts and don't have the slightest idea where the vehicle is made. BMW SUVs are all made in South Carolina and have never sold better. Also amazingly since the dollar dropped its helped BMW become more profitable. Talk about a great move or good luck!

The Caddy SRX is made in Mexico. Quality is no worse than anywhere else and it sells like hotcakes and again consumers and buyers don't seem to know and Caddy sure ain't gonna tell them. Most consumers simply like what they like and don't do much research on where the vehicle was assembled.

Acura is an American company and buyers don't seem to care and even fanbois ignore it. What seems to matter is the badge.

Not sure what that has to do with anything since its completely hypothetical.

Yup and the knowledgable consumer or those that would care are few and far between.

bitkahuna

iTrader: (20)

great points.

you're right, could discuss that hypothetical in a different thread, if at all.