Published on February 8th, 2023 | by Subhash Nair0
BMW Investing €800 Million To Develop EV Facilities In Mexico
BMW will pour in another 800 million euros into Mexico to make electric vehicles there.
BMW has announced that it’s investing a whopping 800 million euros (RM3.69 billion) in San Luis Potosi, Mexico to assemble high-voltage batteries and build its Neue Klasse fully electric models. This latest expansion is part of BMW’s plan to convert more than half of its sales to all-electric cars by 2030. The new Mexican facilities are also set to create around 1,000 new jobs in the region.
The bulk of the funds, 500 million euros, will go towards building a battery assembly center at BMW’s existing plant in San Luis Potosi, where around 500 employees will work. The remaining 300 million euros will be used to adapt the body shop, extend it, and create a line to install battery packs. According to plant head Harald Gottsche, the construction of the extensions and battery assembly will begin in 2024, with vehicle production ramping up at the start of 2027.
This move follows BMW’s other major expansions in recent months, including a $1.7 billion investment in the US and a 2-billion-euro push to build an EV factory in Hungary. The Hungarian plant is poised to be BMW’s first fossil-free facility. Gottsche says the Mexico plant is also increasing its use of solar energy and is swapping natural gas for biomethane. “We want to beat the Hungary plant, of course,” he says.
The entire auto industry is shifting to comply with stricter environmental regulations and reduce its impact on the environment, and Mexico is no exception. The country aims convert half of its automotive production to electric by 2030. As is stands, 30% BMW Mexico’s sales consists of hybrids and fully-electric vehicles already.
BMW’s Neue Klasse of electric vehicles has yet to be revealed but a teaser for what’s to be expected can be seen with the BMW i Vision Dee concept, which was shown just recently. BMW currently sells the iX, iX3, i3, i4, and i7 electric vehicles. Most of these are available even in Malaysia. Will Malaysia also be selected for electric vehicle production for the region, just like Mexico?