BMW committed on Mexico plant despite Trump’s threats

Automotive - Himanshu Gill - Jan 09,2017

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bmw committed on mexico plant despite trumps threats

German carmaker BMW has reaffirmed its commitment to setting up a new production plant in Mexico, despite the threat of Donald Trump’s big border taxes.

BMW had earlier unveiled its plans to spend $1bn on a plant in Mexico, but the US president-elect Donald Trump had warned to impose a heavy border tax on companies that manufacture in other countries and sell their end products in the US.

Trump also criticized General Motors for manufacturing their Chevrolet Cruze cars in Mexico and send them in the US market. He is already in a brawl with Toyota as the Japanese company has similar plans for setting up a plant in Mexico. Trump has been prompting the idea of import taxes of 35 percent on companies that manufacture outside the US.

Ian Robertson, BMW sales marketing director, said that the company is “absolutely committed” on making its new plant in Mexico, which will produce its 3 series cars for sale across the US. He added that BMW builds plants all across the world as part of its strategic manufacturing capacity.

Last week Ford canceled its plan to set up a $1.6 billion plant in Mexico and instead decided to expand its operations in Michigan, USA, by investing $700 million and creating 700 jobs. Ford CEO Mark Fields said that the decision has been taken partly due to falling sales of small cars and partly as a "vote of confidence" in Donald Trump's policies.

BMW, which also owns British car brand Mini and Rolls Royce, announced that it will bolster investment in its plant in South Carolina by $1 billion, pointing out that BMW vehicles remain the biggest export of from the US in terms of value.

Meanwhile, Fiat Chrysler Automobiles (FCA) also announced a $1 billion investment to produce its Jeep models in the US.