June 7, 2019—BMW opened its San Luis Potosí plant in Mexico, one of three plants that BMW is opening to help produce its new global 3 Series platform, according to a report by CNET.
BMW just opened this plant while the Trump administration is currently looking to impose tariffs on Mexican imports.
At the initial level of 5 percent, BMW could likely deal with the increased $2,000-$5,000 in cost. If the tariff escalates all the way to the proposed maximum of 25 percent, that would be an additional $10,000 to $12,000 in cost and would essentially make the San Luis Potosí factory useless for U.S. imports.