Behind a great assembler, there are at least 30 providers

The new plant BMW is building in San Luis Potosi will serve to attract investment from other 34 provider plants into Mexico. According to the Development Center of the Automotive Industry in Mexico (CEDIAM), there is an average of 30 provider companies that come to establish plants over the course of the two years following the opening of an assembler factory, with investment ranging from US$100,000 to US$150,000 each. Among the new companies, there is the China-based Minghua Corporation, a bumper provider, located next to BMW. Eduardo Nuñez, manager of the purchase department of BMW Mexico, also forecasts upcoming investment from current providers.