BMW 'commits' to new Mexico car plant despite Donald Trump's border tax threats

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BMW, one of the world’s largest luxury carmakers, has reaffirmed its commitment to open a new plant in Mexico, despite the threat of “big border tax” on companies by US President-elect Donald Trump.

Last week, Mr Trump criticised General Motors for buildings cars for the US market in Mexico. He told GM to make the cars in the US “or pay big border tax!”.

However, Ian Robertson, BMW sales and marketing director, told the BBC that the firm was "absolutely committed" to its new plant in San Luis Potosi, which will make its 3-series cars for sale across the US, bucking a trend by other manufacturers of increasing their domestic investments or moving factories back to the US.

"I don't think there's any discussion that BMW is not at home in the United States. Yes, we are building a plant in Mexico. Yes, we built a plant in Brazil last year. Yes, we are building plants in other parts of the world as our capacity increases. But that's part of a normal strategic manufacturing direction," Mr Robertson said.

Mr Robertson added that the company, which also owns Mini and Rolls-Royce, would also bolster investment in its plant in South Carolina by $1bn, pointing out that BMW was the biggest exporter of vehicles from the US in terms of value.

Mr Trump has taken aim at car manufacturers who have moved manufacturing jobs abroad, including General Motors and Toyota.

Last week he tweeted: "General Motors is sending Mexican made model of Chevy Cruze to US car dealers-tax free across border. Make in USA.or pay big border tax!"

Following Mr Trump’s tweet, Ford announced it would not open a planned facility for assembling Ford Focuses, which would have brought $1.6bn and 2,800 jobs to the state of San Luis Potosi.

Instead the company will add 700 jobs at a cost of $700m to a US plant in Michigan.

Mark Fields, Ford chief executive, said the decision was partly due to falling sales but also a “vote of confidence” in the pro-growth policies Mr Trump has vowed to pursue.

On Sunday, Fiat Chrysler Automobiles, said it will invest $1bn to modernise two plants in Ohio and Michigan and produce three Jeep models on US soil, creating a projected 2,000 jobs.

The company also said it would also potentially bring production of a Ram heavy-duty pickup truck back to the US from Mexico.