BMW’s next-generation electric vehicles will be built in San Luis Potosí, Mexico, as well as two production sites in Europe, the automaker confirmed in a press release Friday.
That could make these new EVs and their associated battery manufacturing facilities eligible for U.S. tax credits and supply chain incentives.
These models, based on a dedicated platform, were named Neue Klasse (German for “new class”) to refer to a line of models from the 1960s that patterned modern BMWs. modern, will launch in 2025 and will be assembled initially in Debrecen, Hungary, followed by BMW’s main plant in Munich, Germany.
BMW Group Plant San Luis Potosí in Mexico
Production in Mexico will begin in 2027, with the majority of electric vehicles produced there likely destined for the United States. By assembling the vehicle in Mexico, BMW will meet the requirements set out in the Act. Inflation Reduction (IRA) for U.S. assembly operations as well as U.S. battery and raw materials content to qualify for federal EV tax credit. Accordingly, this could be just one of many imminent announcements for Mexican-made electric vehicles.
The automaker is investing $865 million to prepare the San Luis Potosí plant, which opens in 2019 and is currently building BMW 3-Series and 2-Series models, to produce electric vehicles. That includes $541 million for a new battery assembly facility.
Neue Klasse will be reported split 3-Series into dedicated EVs and internal combustion platforms, as opposed to i5 and i7 EVs that use a transitional internal combustion platform. BMW has also suggested that the dedicated platform developed for the Neue Klasse models could assist hydrogen fuel cell powertrain also.
BMW Group Plant San Luis Potosí in Mexico
This will also be one of the first BMW models switch to cylindrical battery cellsenables more range, faster charging and potentially reduced costs, the latter being offered to BMW CEO Oliver Zipse intention to create affordable electric vehicles.
BMW also plans to make electric vehicles in the U.S. The automaker recently announced a $1.7 billion expansion for Spartanburg, South Carolina, including $1 billion to prepare for the installation of new electric vehicles. electric vehicle assembly and $700 million for a battery assembly facility in nearby Woodruff, South Carolina.
By 2030, BMW is expected to build at least six all-electric models in the US. The automaker predicts that electric vehicles will account for 50% of its global sales that year.
