BMW May Invest $1 Billion in Mexican Auto Parts, Minister Says

June 30 (Bloomberg) -- Bayerische Motoren Werke AG, the world’s largest maker of luxury cars, may invest more than $1 billion in Mexico to prepare local auto-parts companies to boost supplies to its U.S. plants, Mexican Economy Minister Gerardo Ruiz Mateos said.

“They want to increase the production of auto parts here in Mexico,” Ruiz Mateos said in an interview in Bloomberg’s Mexico City office yesterday. He said he’s going to Germany in the coming weeks to discuss the project with BMW.

BMW is purchasing more supplies outside Germany as part of a goal to lower costs by more than 4 billion euros ($4.9 billion) by 2012 and to reduce the impact of foreign currency swings on earnings. By buying parts in Asia and North America, the company will cut currency risk by 1 billion euros by 2012, Herbert Diess, BMW’s purchasing and logistics chief, said in a May 4 interview.

For Mexico, the BMW initiative would help President Felipe Calderon’s plan to increase foreign investment at a time when the country’s share of North American auto production may rise at a quicker pace as U.S. automakers seek lower labor costs.

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=ahIu2hzjU8ts

Lower labor costs....maybe the US should adjust its labor costs, too - weakening USD ?

 

Not an option. To weaken the $USD "enough"... that it would allow US workers to be competitive... would mean the bankruptcy of nearly ALL Americans.

 

Isn´t it anyway the target of US economic policy ?

 

Seems it is. If Obama gets his way, he wlll "redistribute the wealth" until we all have the same.. NOTHING! Much as in the Soviet Union before it collapsed.

 

100K M5 made in mexico by workers making 2 dollars an hour.

Sad.

 

I am thinking more like Cuba. Medical care for all, but a population of nearly 100% needy people. And the economic development plan is a raft to Florida