As part of a larger effort to expand its global production network, BMW AG will invest €800 million ($872 million) in its San Luis Potos, Mexico, plant to produce BMW Electric Vehicle.
German automaker Volkswagen said Friday that the majority of the investment would be used to build another high-voltage battery gathering plant at the site for BMW Electric Vehicle, confirming a January declaration by Mexican President Andres Manuel Lopez Obrador. With the expansion, around a thousand new jobs will be created, and EV production is scheduled to begin in 2027.
BMW Electric Vehicle Future
BMW Electric Vehicle to compete with Tesla Inc., which continues to dominate global EV sales, includes building a factory in Mexico to produce electric vehicles based on the company’s “Neue Klasse” underpinnings. BMW plans to significantly decrease cell costs while increasing range and charging speed by 30% compared to current models. BMW’s plant in Debrecen, Hungary, where the automaker has recently increased investments to €2 billion, is where the first “Neue Klasse” models will be produced toward the end of 2025.
BMW announced in October that it would invest $1.7 billion in its South Carolina assembly centre to produce electric vehicles locally for the American market. By 2030, the company hopes that 50 per cent of its vehicle sales will be electric, and it has shown that this is possible in the past.
The German automaker confirmed on Friday what Mexican President Andres Manuel Lopez Obrador said in January: that more than half of the investment will go toward building a new high-voltage battery assembly plant at the site. The expansion is expected to add about a thousand new jobs, and EV production is set to begin in 2027.
Neue Klasse Mexican Plant
BMW’s “Neue Klasse” platform, which is being developed at the Mexican plant, is at the heart of the company’s plans to challenge Tesla Inc., which continues to dominate global EV sales. BMW hopes to increase range and charging speed by 30% over current models while reducing cell costs by half.
BMW’s plant in Debrecen, Hungary, where the company has recently doubled investments to €2 billion, will produce the first “Neue Klasse” models by the end of 2025.
BMW announced in October that it would spend $1.7 billion expanding its South Carolina manufacturing hub so that it could produce electric vehicles for the American market. By 2030, the company hopes to have achieved at least half of its sales from fully electric vehicles.
The San Luis Potos, Mexico, facility of BMW AG will receive an investment of €800 million ($872 million) as part of the company’s plan to expand its global production network and produce electric vehicles.
Mexican President’s Address about Investment
The German automaker confirmed on Friday what Mexican President Andres Manuel Lopez Obrador said in January: that more than half of the investment will go toward building a new high-voltage battery assembly plant at the site. The expansion is expected to add about a thousand new jobs, and EV production is set to begin in 2027.
BMW’s “Neue Klasse” platform, which is being developed at the Mexican plant, is at the heart of the company’s plans to challenge Tesla Inc., which continues to dominate global EV sales. BMW hopes to increase range and charging speed by 30% over current models while reducing cell costs by half.
BMW’s plant in Debrecen, Hungary, where the company has recently doubled investments to €2 billion, will produce the first “Neue Klasse” models by the end of 2025.
I am pleased to announce that we will soon be making additional progress toward e-mobility, also known as electric mobility. We’ll begin by bringing our next-generation of all-electric Neue Klasse vehicles to this incredible facility in Mexico. BMW AG board member for production Milan Nedeljkovic made this statement.
The battery modules for all-electric vehicles built at the San Luis Potosi plant will be manufactured there, he said.
The BMW GROUP president and CEO, Harald Gottsche, has stated that the company will begin producing all-electric vehicles and utilizing a new technology, battery assembly, at the start of 2027. We are the first high-end automaker to manufacture EVs and EV batteries in the region of Latin America.
According to Gottsche, Mexico is a good place for German businesses to invest because of the country’s strategic location, its highly qualified workforce, and the trade facilities it has gained as a result of its signing of free trade agreements.
President López Obrador, meanwhile, believed that the State was essential for regulating the market and for politics to meet its social responsibility in the redistribution of wealth.
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