BMW Group celebrates ground-breaking for new plant in Mexico

Milestone for growth in NAFTA free-trade zone

Production of BMW 3 Series Sedan from 2019

Investment of one billion US dollars

BMW Group Plant San Luis Potosí sets new sustainability
standards

 


San Luis Potosí / Munich.

Today’s ground-breaking signals the start of construction of the
new BMW Group plant in Mexico. Guests attending the official
ceremony in San Luis Potosí included Rogelio Garza Garza,
Undersecretary of Industry and Commerce at the Mexican Ministry of
Economics; Dr. Juan Manuel Carreras López, Governor of the state of
San Luis Potosí; Oliver Zipse, member of the Board of Management of
BMW AG, responsible for Production and Milagros Caiña-Andree, member
of the Board of Management of BMW AG, responsible for Human
Resources and Labour Relations.

 


Newest BMW Group plant with cutting-edge technologies

Board of Management member for Production Oliver Zipse believes
the new plant in San Luis Potosí will be a special location: “All of
the BMW Group’s knowledge and capabilities will be on show at our
new location in Mexico. The production system being established
there will be a leader in productivity and sustainability, thanks to
the use of innovative technologies. I am delighted to launch this
ground-breaking BMW Group plant on its way.” Board of Management
member for Human Resources Milagros Caiña-Andree underlined the BMW
Group’s role as an employer: “Our success depends above all on the
people who work for us. Their capabilities create our products. They
form the strong foundation of our new BMW Plant San Luis Potosí. For
this reason, it is also important for us to be an attractive
employer here, to inspire passion for the BMW Group among employees,
to encourage their ambition and develop their talents.” Governor
Juan Manuel Carreras López commented: “The BMW Group is an important
partner for our state and will help to further develop the industry
in the region. San Luis Potosi is an attractive state for the
automotive industry with skilled workers, a logistically interesting
location and the necessary infrastructure for the development of
this kind of projects. In San Luis Potosi, we are ready to support
the industry.”

 


Start of production for BMW 3 Series Sedan planned for 2019

San Luis Potosí will build the BMW brand’s best-selling model
series, the BMW 3 Series Sedan. For more than the 40 of the
company’s 100 years, the iconic BMW 3 Series has been the heart of
the brand and set the benchmark for dynamic performance, efficiency
and design.

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.

Start of production is scheduled for 2019, with an annual
production capacity of up to 150,000 units. The BMW Group is
investing around a billion US dollars in the new plant and creating
at least 1,500 new jobs. The decision to locate in San Luis Potosí
was based on criteria such as the broad
supplier network and
qualified local workforce, as well as the technical and social infrastructure.

 


Mexican plant to set new standards

The BMW Group Plant San Luis Potosí will be a full plant,
comprising body shop, paint shop and assembly, characterised by an
innovative production system and comprehensive sustainability
standards. From the first full year of production, the plant will be
the BMW Group’s most resource-efficient production location
worldwide.

 

For example, the use of renewable energy sources ensures that
the plant is supplied with 100% CO2-free electricity. Most of the
electricity comes from a solar system on the plant’s grounds.

Responsible use of water resources is a particular
sustainability goal in San Luis Potosí. The facility will have the
lowest water consumption per vehicle produced in the production
network. This will be the BMW Group’s first paint shop to produce
zero process wastewater. The water needed for the painting process
is reconditioned and recycled.

 

The BMW Group is relying exclusively on digital 3D plans for
both building construction and equipment installation at the plant.
During every phase of construction, architects enter specific
information, such as location, dimensions or completion date into
digital models. Digital 3D-scan technology is being used for the
first time during the set-up phase. The combination of these two
technologies enables real-time analysis of construction progress and
cost-efficient modifications, and provides the BMW Group with
constant planning reliability.


 


Plant will benefit from experience within the production network

Everything is in place for the start of production: 25 young
mechatronics engineers began their training in September 2015. This
year will see the launch in cooperation with local technical
colleges of similar programmes for production mechanics and
automotive mechatronics experts. Mexico has a work-linked training
concept based on the German model.

 

The plant in San Luis Potosí will benefit from experience within
the BMW Group production network. Plants Munich and Spartanburg are
demonstrating their strengths by helping set up the Mexican
facility. 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 training programme for future employees is an important
cornerstone for us. The new plant will set international standards
with innovative technologies and resource-saving production,”
explained Hermann Bohrer, head of the BMW Group Plant San Luis Potosí.

 


BMW Group sets the course for continued growth in the NAFTA region

The BMW Group production network comprises 31 locations in 14
countries on four continents. The expansion of its international
production network has always followed growth in markets around the
world. In this way, the BMW Group ensures itself a highly-efficient
and flexible international production network with a balanced
distribution of value creation between Europe, Asia and the
Americas. With this in mind, Mexico is another building block in the
BMW Group’s growth strategy. The country is a member of the NAFTA
free-trade zone with Canada and the US, and has concluded free-trade
agreements with the European Union and MERCOSUR countries, making it
easier to export automobiles and import supplier parts.

 

North America is one of the most important growth markets for
the BMW Group.

The company will invest a total of one billion US dollars in the
expansion of its American plant in Spartanburg by the end of 2016 to
achieve a production capacity of 450,000 units. The plant, which
specialises in BMW X models, became the largest in the BMW Group
production network in 2015. This expansion is in response to strong
global demand for X models. The new BMW X7 will be produced in
Spartanburg in the future. With Spartanburg and San Luis Potosí, the
BMW Group will have full production capacities at key locations in
North America.

 


The BMW Group in Mexico

The BMW Group has operated a local sales company in Mexico since
1994, and in 2015, sold a total of 17,475 vehicles (12,170 BMW, 5,305
MINI) – an increase of more than 17% over the previous year.
Motorcycle sales for the same period reached 2,615 units (+15.2% YOY).

 

The BMW Group opened its Purchasing and Supplier Network Mexico in
2008. From here, the BMW Group maintains close relationships
with its suppliers in Mexico and North and Central America. Last
year, the BMW Group purchased products worth more than 2.5 billion
US dollars from Mexican suppliers. This represents an increase of
about 18% compared with the previous year.
Over the long
term, the Purchasing and Supplier Network Mexico will be managed out
of in San Luis Potosí.