Originally Posted by anerbe
I think we are overall on the same page.
- Mexico, along with the US, has the capability to build good quality cars.
- Start-up of a plant will always be shaky at first
- Technically, utilizing an established plant and supplier base will be easier to launch a new product.
- Many things go into consideration when choosing a plant location, whether it be government regulations, market conditions, labor rates and expertise, local incentives, etc.. I'm sure BMW reviewed all these.
I never said I don't like your political statement, nor did I give my stance. I simply said I don't know how BMW considered government regulations into their decision (level of influence). I'm sure you also don't know, unless you are part of BMW's board of directors. I do know that some people get so passionate regarding politics, conversations (especially on forums) can go downhill, fast.
I'm sticking to my logic that BMW wants to expand growth in the Central and South American regions. They need 2 things - small vehicles and localized production. BMW probably mulled over production in Brazil (where 13 other Automakers produce regionally sold vehicles), but with the recent drop in Brazil's economic reputation, Mexico is taking the lead. With a small FWD platform, it will appeal to the more Southern countries, and Mexico is that much closer to the waterways (reduced logistics costs).
When my German company was deciding to set up a new plant, potential locations included Mexico, as well as a large group of states, including Michigan, Pennsylvania, Tennessee, Carolinas, Georgia, Alabama, etc....We already have plants in Illinois and Mexico. Michigan was quickly axed due to the labor unions and high rates, Mexico didn't make sense due to our existing plant's ability to support local markets. We settled upon South Carolina due to a number of factors, with government policies being only a piece of the pie.
I'm sure they did cosider more than gov't policies. And if the market for the plant is primarily SA based, then I think you are very correct in your assessment.