Tuesday, 1 July 2014

BMW to open a factory in Mexico?


It is to be revealed this week (July 3rd) if BMW are to open another production factory in Mexico.
This drastic news has said to be in aid of the firm keeping up with the demand for their premium cars.

The news of the new factory opening comes pretty soon after (days after in fact) BMWs competitor; Daimler (Mercedes-Benz), announced they too will be opening a production factory in Mexico.

Why Mexico you ask? Simple, to keep costs down. Although the initial start-up cost may be high Mexico offers reduced labour costs in comparison to Germany and the USA. Also, by producing the cars in Mexico BMW will not have to incur some of the currency and tariff costs that eat into their profits.

BMW have also suggested that they are to invest a further $1 billion in to their factory in South Carolina in order to expand and increase capacity by 50%.
So, it looks like there will be quite a few more BMW’s on our roads. What do you think?
 Let us know by leaving a comment below, tweet us @BigMotoring or post on our Facebook page: http://www.facebook.com/BigMotoringWorld.

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