Recent, unconfirmed reports have said that BMW plans to open up a new plant to boost sales of the Mini in North America. Although BMW executives have not shared any plans, the report opens up room for speculation. If BMW were to build this new plant, it would likely be set up in North America. This is because the Mini is very small car, and therefor has very low margins. If it were to be built where they intend to sell it, BMW would be able to make greater profits than they do when producing Minis in their plant in England.
The report also says that the plant would likely be built in Mexico. BMW already has a successful plant in Spartanburg, South Carolina, so this brings up the question of why they now plan to make the switch to Mexico. It could possibly be because they already have a plant int the United States, so they think that the most room for North American growth would be in Mexico. BMW would also benefit from
NATO NAFTA (?), and would be able to sell to Americans as if their plant were in the States, except they would not have to deal with as many regulations from the government such as a higher minimum wage. As long as American consumers are willing to look past the stigma of the car being produced in Mexico this will likely benefit BMW and Mini. It is possible that it will come down to whether or not American consumers associate the Minis with their high quality, German parent company, or if they see it as more of a small, cheap car from Mexico. However, it seems that if Mini is able to succeed in Mexico, it should continue a trend of more car production in Mexico, and it may even draw from other areas.