BMW and Hyundai may be joining the rush for the border that has already seen Nissan, Honda and Mazda begin factory construction in Mexico, while Ford and General Motors have both made significant investments in their Mexican facilities. BMW's interest in Mexico has been apparent for some time, and while we'd heard grumblings about Hyundai's move into Latin America some time ago, the last we heard about it was in 2009.

This new move, reported by Bloomberg, doesn't get specific on which models will be produced south of the Rio Grande, and as neither automakers' spokespeople responded to the business site's request for statements, all we really have to go on are the statements of Mexico's Economy Minister, Ildefonso Guajardo: "I cannot talk for them, but I think that starting 2014 we'll have new announcements. At least for one." Which manufacturer that will be remains anyone's guess, although judging by all the recent scuttlebutt that's been going around, the smart money seems to be on BMW. We'll stay with this one.


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    • 1 Second Ago
  • 37 Comments
      JOSEPH
      • 1 Year Ago
      Oh well, there goes the quality and another loss of jobs.
        paqza
        • 1 Year Ago
        @JOSEPH
        Loss of whose jobs, exactly? People in Bavaria and Seoul?
      gpfs
      • 1 Year Ago
      The point has been reached where it is almost impossible to buy American. I have a solution for that!
      Awhattup
      • 1 Year Ago
      I know Korea is going to start moving their factories overseas more and more. The union at Hyundai's home factory has been going on strike every year with demanding ridiculous stuffs (over 180 of them this year) The average wage at the factory is nearing $100k(that's USD) they have doubled their wage over a decade. UAW has nothing on Hyundai's union.
        RocketRed
        • 1 Year Ago
        @Awhattup
        So how did Korea go from making toasters to world-class cars, not to mention container ships, faced with the supposedly debilitating burden of Unions? By the way, Mexico has unions too.
          paqza
          • 1 Year Ago
          @RocketRed
          The current administration (Peña Nieto) is doing what it can to subjugate unions, starting with the Education. So far, they're succeeding, for better or for worse, depending on the union.
      d
      • 1 Year Ago
      I won't buy a Mexican made car. It's not that the Mexicans aren't hard workers, they are. It's just that they aren't skilled and the quality of their craftsmanship is very poor. Quality control isn't exactly a strong-point of Mexican manufacturing. I dread the Mexican made GTI. If it is anything like the Jetta and Beetle, it will have windows that aren't installed right, suspension parts not bolted right, horrible alignment from the factory, countless electrical wiring problems, etc. Millions of Sony and Samsung TVs come out of Mexico with problems due to faulty construction. A lot of them have screens that are dirty on the inside, you have to take the TV apart to clean something that should have been clean from the factory. Want your refrigerator to last less than five years? Buy a Mexican made Whirlpool or Frigidaire. A business colleague of mine has a leather goods factory in Mexico. They can;t make two pairs of shoes that look the same. So he markets the shoes as "Hand Crafted" and says that the differences are due to the skill of each craftsman and makes every shoe unique. It's BS for terrible quality control, all shoes are hand crafted. At least in China they can make a production run look the same. The downfall to cheap labor is that eventually is degrades your product to the point it isn't even worth buying.
        Patrick
        • 1 Year Ago
        @d
        With all due respect, BMW has been sourcing parts in Mexico for a loooooong time and they are happy with the quality. I understand that Toyota's Baja California plant has been one of the top three plants in terms of Quality in North America a couple of times. The last generation Fusion made in Hermosillo was quality competitive with any Accord or Camry. This WP article specifically highlighted the high quality you can get in Mexico: http://articles.washingtonpost.com/2013-07-01/world/40294191_1_u-s-auto-sales-mexican-hemi Sorry that your friend had a bummer with his leather factory, but quality in Mexico is a question of corporate will, not necessarily the raw human capital on hand.
        bleexeo
        • 1 Year Ago
        @d
        Not true at all. Things are different now that robots make nearly the whole car. Robots don't give a hoot where they work.
      telm12345
      • 1 Year Ago
      So yesterday we talked about the UAW going to VW and how its going to make OEMs go to Canada/Mexico... and this - literally the next day. How is the UAW even legal? Why is no one doing anything about this? Oh right, politicians.
        Seal Rchin
        • 1 Year Ago
        @telm12345
        Fact of the matter is automakers do not have to use UAW at all, if they actually seriously invested into automation like they did in 80's they could have reduced labor force down to a meaningless amount where all humans do is just move cars not build them. They just need to get together, one company develops a machine that attaches doors, another that attaches wheels and another that attaches hoods...........right there you just eliminated 20+ employees per shift.
          imoore
          • 1 Year Ago
          @Seal Rchin
          I agree also. Of course, knowing the UAW, they will probably demand to represent the person who has to move the cars from the assembly line. Or demand to represent other workers like the mailroom clerk. They've got to keep their hand in the cookie jar somehow.
      Cool Disco Dan
      • 1 Year Ago
      America is not a good place to do business anymore.
      • 1 Year Ago
      [blocked]
        dude
        • 1 Year Ago
        more money for North American benefits Mexico, Canada, and the US. The money stays here instead of going to asia or europe. I for one know Mexicans see american products and brands as high quality and buy it often. More money in mexico means more us products are being bought.
          paqza
          • 1 Year Ago
          @dude
          Mexicans buy Fords over Toyotas.
      churchmotor
      • 1 Year Ago
      with the recent attacks by the Detroit Mafia against the workers in Tennessee, I don't blame other companies for looking to expand outside the USA.
        JOSEPH
        • 1 Year Ago
        @churchmotor
        I think that the Detroit Auto Unions have outlived their usefulness and have crippled the U.S. Auto Industry with their high demands.
          deebeedonny
          • 1 Year Ago
          @JOSEPH
          The labor unions were formed for a reason. To prevent employer abuse, discrimination, assure fair working conditions, fair wages, etc., etc., The GOPers are against raising the minimum wage scale from $7.25 per hour to our Presidents proposal of raising it to $9.00 per hour. Without Unions it's almost certain the car companies would pay theri employees close to the minimum wage. Now, these car companies who are building plants in Mexico, Canada, Malaysia, Thailand, etc., etc., looking for the cheap labor, but the price of their vehicles remain high. It's all about profits...The republicans are against Unions, against raising the minimum wage, so I view them as "not" being the political party for the American workers......Some blame NAFTA as the reason for these car companies moving operations to foreign countries, but the blame should also be on the Bush/republican tax code provisions that I view as literally opening the door for many iconic american companies to build and relocate operations to foreign countries, close down american factories, outsource american jobs, then get those hefty Bush/repub tax breaks, write-offs, loopholes for doing so...So, i think the blame should be on NAFTA and the Bush/repub tax code provisions for the reason that not only the car companies and almost every other iconic american companies have theri products manufactured in foreign countries, while the american unemployment lines get longer...So, Hyundia and BMW are negotiating with the Mexican officials???? I wonder if the preice of their vehicles are going to be cheaper because of the poverty wages the Mexican workers are paid??? I am for supporting the American economy and the American Workers. I'm not too concerned with how many mega billions the companies make then pay little or no tax while their are millions of americans seeking employment....Buy American....
      Jan Drobiak
      • 1 Year Ago
      VW had to shut down the entire operation at their Mexico Jetta plant years ago because of the lack of quality control, and cars being passed for inspection that shouldn't have. Orders for Jetta couldn't be filled as a result. People were coming in to the showrooms demanding that the Jetta's were German made. (The Wolfsberg Edition.) There is a reason why German made cars are successful. There is a psychology of pride and workmanship of a vehicle that is made in a country where the factory workers (Germany, in particular.) are well aware of the recognition and reputation that they have garnished.
      sundude
      • 1 Year Ago
      Now that Hyundai announced its plan to sell cars directly in Mexico (rather than in partnership Chrysler), they are required under Mexican law to produce at least 50,000 units there. Maybe more than that, in the near future. Why Mexico -- which has been eating our lunch for many years in attracting automotive manufacturing investment -- still needs to hide behind a protectionist measure like that is a mystery to me.
        Patrick
        • 1 Year Ago
        @sundude
        You aren't required, but it gives you some benefits. I'll admit my pro-Mexico bias, but I'll be damned if you don't have me in an arm lock and I have to agree you are right. As a matter of fact, given Mexico has signed more free trade agreements than any other country you can name off hand, I'm shocked that incentive is still in the books. BTW where did you see that Hyundai is going to go all-in in Mexico. My girlfriend works for one of the US automakers in Mexico and that would be a world class headache for them.
      wilmisale
      • 1 Year Ago
      The problem seems to be that when the quality goes up, planned obsolescence takes longer, and we can't have that, can we? With the average age of vehicles on the road being 11 years, the manufacturers must be crying that cars are lasting too long. This seems as good a way as any to fix that.
      findrobin
      • 1 Year Ago
      NAFTA. LMAO. Clinton made millions in his swiis bank account for that one. Just like Ross Perot said "...passing the NAFTA will cause a hugh suckng noise towards Mexico..." and it did.
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