In the last 7 years, BMW has quadrupled the amount it allocates to buy components that it purchases from Mexican plants up to US$ 2.5 billion last year, revealed Alexander Wehr, CEO of BMW Mexico, in an interview to Expansion.
The executive estimates that the figure will double up to US$ 5 billion once the new plant that the company builds in San Luis Potosi starts operations.
The BMW International Purchasing Office (IPO) started operations in 2009 acquiring US$ 600 million worth of components to a base of 64 suppliers. Around 79% of the purchases were destined for the plant in South Carolina, where it assembles X Series vehicles (X5, X3, X6). The rest was exported to other company plants in Europe and Asia.
By integrating Mexico-made components the German automaker increased the regional content of the models it assembles in the United States, in order to comply with the requirements of the North American Free Trade Agreement (NAFTA) to export to Canada and Mexico with tariff benefits. For instance, the third generation of the X5 was launched in 2013 with 63.5% regional content.