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BMW joins Merc in new Mexico plants

2014-07-04 07:41

BIG DEAL FOR MEXICO: Mexican president Enrique Pena Nieto (centre) with by BMW production chief Harald Krueger (left) and San Luis Potosi governor Fernando Toranzo at the announcement of a new plant in Mexico. Image: AFP / Presidencia

MEXICO CITY, Mexico - Germany's BMW says it will invest the equivalent of R10-billon to build a new factory in northern Mexico.

BMW board member Harald Kruger made the announcement on Thursday (July 3 2014) in Mexico City, saying the plant in the northern state of San Luis Potosi would have the capacity to make 150 000 cars a year.

The automaker has 28 factories in 13 countries.

MERC/RENAULT THERE TOO

The announcement comes a week after automakers Daimler and Renault-Nissan said they would invest R16-billion in a factory to make premium compact cars in Mexico.

Mexico has become a preferred spot for automakers because of low wages, its proximity to the US and free trade agreements with 45 countries.
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