· Mercedes-Benz and BMW will build factories in Mexico to reduce costs

According to German media reports, as the world's auto market heats up, expansion capacity has also begun to be put on the agenda by major automakers, and countries with close to major markets and low costs are often welcomed. Both German and luxury car giants BMW and Mercedes-Benz are planning to build new plants in Mexico, mainly because of the low labor costs.
According to media reports, BMW and Mercedes-Benz have already planned to build a new factory in Mexico. BMW's plan is to produce the 3 Series in Mexico in the future, while Mercedes-Benz is building a new production line for its compact car. It is reported that BMW hopes that its Mexican plant will produce its first car by the end of 2016 or early 2017. Mercedes-Benz decided to build a new plant in Mexico two weeks ago to produce the next-generation CLA and a class-derived car.
A BMW spokesman denied media rumors. The spokesperson stressed that BMW did not make any decision to build a factory in Mexico. He said that BMW has been looking for a new factory address for a long time. "We have been very interested in NAFTA (including the North American Free Trade Agreement of the United States, Canada, and Mexico)," but "there is no decision on where to build a new factory," the spokesman added.
The Mercedes-Benz spokesperson did not respond to this incident. As Mercedes-Benz's newly developed compact models continue to sell well, building new plants to increase production capacity should be considered by Mercedes-Benz management. However, the company currently has only experience in producing trucks and shuttle buses in Mexico.
Prior to this, Mercedes-Benz assembly Cai Che said in February that Mercedes-Benz needed a new factory due to the shortage of compact models. According to "Manager" magazine, Mercedes-Benz will cooperate with Nissan to produce the next-generation compact model in Aguascalientes, Mexico. At that time, Nissan's models will also be produced at this factory. BMW announced in March this year that it will expand its capacity in the US plant. Due to the popularity of the BMW SUV, BMW plans to achieve a production capacity of 450,000 vehicles in its southern California plant by 2016, which is 1.5 times the current level.

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