BMW seeks clear guidance from Mexican government for investment plants

by   |  VIEW 314
BMW seeks clear guidance from Mexican government for investment plants

On Tuesday, the 5th of March 2019, a top executive of German carmaker BMW, which had been working on its first Mexican plant, said that the company was seeking for clear signals from the new right-wing government of Andres Manuel Lopez Obrador, which would likely to guarantee stability to invest in the country.

In an interview with the press on Friday, the 1st of March, president and CEO of BMW Group Mexico, Latin America and the Caribbean, Alexander Wehr said, “The company needs robust premises in terms of how the government is making decisions, what are its priorities, its international stance, how the budget is handled.

” Besides, Wehr also added that the BMW had been keeping a close eye on Mexico’s sovereign rating, alongside domestic sales of cars. Last week, the rating agency, S&P had downgraded Mexico’s sovereign debt alongside its national oil company Pemex, saying that there had been a 33 percent chance of another sovereign downgrade in the upcoming year, which would eventually rate the country’s sovereign debt just a notch shy of junk.

Besides, in a report, Moody’s Investors service had been quoted saying on Tuesday (March 5th) that an intensifying scale of crime and violence in Mexico had raised concerns about the security-related credit risks for businesses and financial risk for municipalities and states.

BMW’s San Luis Potosi plant would start production in mid-2019 and would have a manufacturing capacity of more than 1,75,000 units per year, while the production plant would only be producing the Series 3 Models.