{"id":29463,"date":"2022-08-17T12:07:56","date_gmt":"2022-08-17T16:07:56","guid":{"rendered":"http:\/\/autosector.com\/?p=29463"},"modified":"2022-08-17T12:07:56","modified_gmt":"2022-08-17T16:07:56","slug":"bmw-factory-in-mexico","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=29463","title":{"rendered":"BMW Was Smart to Build a Factory in Mexico"},"content":{"rendered":"

When BMW first opened the San Luis Potosi<\/a>, Mexico plant in 2019, it likely didn\u2019t realize how important it might become in the future. BMW obviously had big plans for it, otherwise it wouldn\u2019t have built it. However, there\u2019s no way BMW could have predicted the electric vehicle climate of today, back then. Now, the SLP plant might become one of the most important of all BMW\u2019s plants and the new Inflation Reduction Act President Joe Biden just signed into law has a lot to do with it.<\/p>\n

Inflation Reduction Act Comes With New EV Rules<\/h2>\n

As part of the new IRA, the U.S. federal tax credits that previously applied to EVs are now gone for many vehicles. One of the new qualifications for that $7,500 EV tax credit is that final assembly of the vehicle must occur in North America. As part of the IRA, that includes the U.S., Canada, and Mexico. At the moment, none of BMW\u2019s EVs are assembled in North America but, if BMW wants to get a bit more serious about selling EVs in the \u2018States, it could shift some of its EV production to SLP. That would allow them to meet the production qualification of the IRA.<\/p>\n

\u201cA number of factors will determine whether a vehicle\/customer is eligible to receive the tax credit contained in the IRA. Firstly, the \u201cfinal assembly\u201d of the vehicle must occur \u201cwithin North America,\u201d i.e., the U.S., Mexico, or Canada.\u201d said Sebastian Mackensen, President and CEO of BMW North America, in a letter to BMW dealers.<\/p>\n