It doesn’t take a mathematician to understand that building MINIs in the UK isn’t ideal if your biggest market is in the US. With currencies being what they are, it’s always made MINIs sold in North America much less profitable than those sold in Europe and elsewhere. Now BMW may finally have a plan in place to rectify this issue. Simply make them in North America skirting by all those currency issues.
Automotive News Europe is reporting that BMW Is considering building their second plant in North America:
BMW CEO Norbert Reithofer has said that the company will need an additional factory in North America to meet rising demand but so far the company has not said whether it favors Mexico or the United States for the plant. The automaker also has not said which vehicles it would build at a new factory. Handelsblatt said BMW executives favor Mexico for the factory and the company is considering building Minis and its smallest BMW brand vehicles there because these are lower margin vehicles and building them locally would boost profits. A decision on the plant will be made by the BMW supervisory board in the second half, the paper said in a report published Wednesday, citing company sources.
From our perspective it makes a ton of sense. Given that BMW stating that the Countryman will be leaving the production sub-contractor Magna Steyr and coming into the BMW production fold with Gen 2, something has to give. And with Oxford at capacity and the new plant in the Netherlands likely focused in building for Europe, moving some production to North America sense logical.