BMW opens KCSM-served plant in Mexico

BMW Group and Mexican government officials last week marked the opening of the automaker's new plant in San Luis Potosi, Mexico.

To be served by Kansas City Southern de Mexico (KCSM), the more than $1 billion plant is designed to produce up to 175,000 vehicles annually. The facility will be used to produce the BMW 3 Series Sedan, the company's most successful model series, BMW Group officials said in a press release.

Each BMW vehicle already contains at least one part provided by the company's 220 Mexican suppliers, and the new plant will benefit from short supply routes and the high level of flexibility in the supply chain, they said.

The BMW Group has operated a local purchasing office in Mexico since 2008. The automaker relocated it from Mexico City to San Luis Potosi in 2017. Last year, BMW sold 25,090 vehicles in Mexico, up more than 13 percent compared with 2017's total.

By 2020, KCSM expects to serve 14 automotive plants in Mexico.