Bienvenido a Mexico!

BMW is coming home, sort of.

BMW announced it is going to build the next generation 3-series cars in San Luis Potosi, Mexico.

The company is investing $1 billion to establish the plant, its second in North America, the other is in Spartanburg South Carolina.

The current 3-series sold in North American, is  manufactured in Germany and South Africa, but production in South Africa will end when the Mexican plant is up and running.

Why Mexico? According to Automotive News, BMW joins other European manufacturers who are taking advantage of, among other things, low-cost labour.

Why a new 3-series?... Simple, sales of the 3-series line in the U.S. have decreased by almost 30%, and currently BMW is the top selling luxury brand in the States, and would like to stay there.

The new 3-series will be built elsewhere, then assembled in the Mexico plant in 2019.

Our Jim Kenzie has his own theory on why automakers are heading to Mexico, and it’s not just lower wages.