The BMW Group has broken ground on its latest facility, located in San Luis Potosí, Mexico.
According to the company, the new plant will produce the BMW 3 Series Sedan.
The plant in San Luis Potosí will also balance out production capacity at BMW Group Plant Rosslyn in South Africa, which will build the new BMW X3 instead of the BMW 3 Series in the future. BMW’s plant in Spartanburg is currently the exclusive manufacturer of the X3 – the company said the Upstate facility will continue to produce the X3, but the company is investing $1 billion to bring production of the new X7 to Spartanburg.
Start of production in Mexico is scheduled for 2019, with an annual production capacity of up to 150,000 units. BMW is planning to invest $1 billion in the new facility and start the process of creating up to 1,500 new jobs in the region.
“All of the BMW Group’s knowledge and capabilities will be on show at our new location in Mexico,” said Oliver Zipse, head of production for BMW, in a press release. “The production system being established there will be a leader in productivity and sustainability, thanks to the use of innovative technologies.”
According to the BMW Group, the BMW Group Plant San Luis Potosí will be a full plant, comprising body shop, paint shop and assembly, characterized by an innovative production system and comprehensive sustainability standards.
The Munich plant will serve as the lead plant for set-up and training, and will train more than 500 Mexican employees by 2019. The company said the plant in Spartanburg is also assisting with set-up and training.
“The training program for future employees is an important cornerstone for us. The new plant will set international standards with innovative technologies and resource-saving production,” said Hermann Bohrer, head of the BMW Group Plant San Luis Potosí.