The BMW Mexico plant will add EVs to its portfolio to take advantage of the new tax credits in the recent Inflation Reduction Act.
President Biden’s Inflation Reduction Act stirred up a bit of controversy regarding what car brands qualify for federal tax incentives. With the signing of this act, only passenger vehicles assembled in North America can qualify for the $7,500 federal incentive — which left just a little over 30 models eligible, and that’s without considering where the batteries are made. (!)
The Bavarians ended up benefitting a bit from this news, having two vehicles on the list: the BMW X5, which is built in South Carolina, and the BMW 3 Series Hybrid, which is built in Mexico. So while the South Carolina plant is running at full capacity, the San Luis Potosí factory will have to do some heavy lifting.
San Luis Potosí already produces the BMW 2 Series and will soon build the next-gen M2 for the global market, and the plant has reportedly asked to start building full EVs as well.
“We are already producing plug-in hybrid cars and have requested to produce all-electric vehicles in the future,” Harald Gottsche, president and CEO of BMW Group Planta San Luis Potosí, said last week. “It is very important for Mexico to improve the external factors for the automotive industry in order to attract these high investments to the country, thus ensuring long-term growth and jobs.”
BMW builds most of its EVs in Germany and China, but to be competitive here in the U.S. market while Americans are still able to receive tax incentives, then Mexico will be key to the brand’s success here.
BMW San Luis Potosi Plant
SOURCE | IMAGES: BMW, VIA CARBUZZ.