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BMW invests in Mexico facility.

 Ger­man car­maker BMW yes­ter­day said it would invest €800mn in stepping up elec­tric vehicle pro­duc­tion in Mex­ico, as the Latin Amer­ican nation stands to gain from its inclu­sion in US sub­sidies that

Electric car

have sparked ten­sion with Europe. The invest­ment includes €500mn for the con­struc­tion of an assembly centre for lith­ium-ion bat­ter­ies on the grounds of a BMW car plant in San Luis Potosí. BMW said the invest­ment would cre­ate 1,000 jobs. The $369bn in green sub­sidies have sparked a tense dip­lo­matic row with Europe, which argues they could unfairly draw invest­ment away and breach World Trade Organ­iz­a­tion rules.

BMW said the plant was planned before the Infla­tion Reduc­tion Act law and that «pro­duc­tion fol­lows the mar­ket» for invest­ment con­sid­er­a­tions. On top of the prox­im­ity to the US mar­ket and its con­sumer tax perks for EVs, BMW said it would also bene­fit from Mex­ico’s labour force and its future sup­ply of lith­ium. At a recent sum­mit in Mex­ico City, the lead­ers of the US, Mex­ico and Canada reaf­firmed their com­mit­ment to mak­ing the region of almost 500mn people a clean energy power­house. While the IRA excluded European allies from its green sub­sidies, the bill exten­ded EV final assembly tax cred­its to Mex­ico and Canada.

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Comments

  1. Amalia4 February 2023 at 14:10

    It's time to stop crying over spilled milk and find ways to attract companies to the EU. I'm getting tired of EU officials blaming the US for those green subsidies. Just start finding solutions to this and stop complaining!

    ReplyDelete
    Replies
    1. Oscar4 February 2023 at 15:21

      EU officials will keep this up for years to come, blaming the US for their own mistakes. What's done is done now. Find ways to deal with these things or just step down and let others take care of things.

      Delete
  2. Norman4 February 2023 at 16:32

    Some countries like Mexico will win big from the green subsidies and others (from the EU) will lose unless they do something about it. Of course companies are going to go where labor is cheaper and where they get financial benefits.

    ReplyDelete

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