BMW breaks ground on Mex­i­can plant

Pakistan Observer - - ECONOMY WATCH -

MEX­ICO —Ger­many’s BMW broke ground on its new Mex­i­can plant, pledg­ing to in­vest a to­tal of $2.2 bil­lion in the re­gion through 2019. BMW (BMWG.DE) fol­lows a wave of car­mak­ers that have sought to take ad­van­tage of the coun­try’s grow­ing in­dus­trial base and tar­iff-free ac­cess to the U.S. mar­ket. Mex­ico’s low wages also help re­duce the Ger­man au­tomaker’s de­pen­dence on higher-cost plants at home.

The $1 bil­lion plant is lo­cated in San Luis Po­tosi, a state in cen­tral Mex­ico that is close to the coun­try’s in­dus­trial heart­land and the U.S. bor­der, and is ex­pected to pro­duce 150,000 cars a year. Ford Mo­tor Co (F.N) is also plan­ning a plant in the same state. El­iz­a­beth So­lis, a spokes­woman for BMW, said the plant would com­ple­ment pro­duc­tion in Spar­tan­burg, South Carolina, and would pro­duce the cars in the pop­u­lar 3 Se­ries. BMW sold ap­prox­i­mately 20,000 ve­hi­cles in Mex­ico in 2015, a 17-per­cent jump from the pre­vi­ous year.—Agen­cies

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