BMWs new factory will ship most of its 3 Series sedan output north to the US

BMW's new factory will ship most of its 3 Series sedan output north to the US

US president Donald Trump may not be happy with news of exports of vehicles from Mexico to the US just announced.

CNBC, citing trade group Asociacion Mexicana de la Industria Automotriz, reported the southern neighbour's factories shipped 1.37m units north of the border during the first half of 2019, accounting for 16.3% of US vehicle sales.

The report noted the 2.6m units exported from Mexico to the US in 2018 was a record tally, accounting for a 15% share.

The data came a month after Trump threatened a tariff on all exports from Mexico due to border control issues but did not follow through.

CNBC said the half year Mexican import tally was up 13% year on year and signalled another record-breaking year for Mexican exports.

In June, Mexican automakers shipped almost 250,000 new cars, trucks and SUVs to the US, a rise of 9.2%.

The report said it was further confirmation that automakers, with few exceptions, continue to add and expand assembly lines in Mexico, even if it draws the ire of the Trump administration.

Early in June BMW officially opened a new assembly plant in San Luis Potosi that builds 3 series sedans, the brand's most popular car [and commonly selected to launch production in a brand-new plant - ed].

Most of those cars would be sold in the US, CNBC said.

"Our production network is flexible but at this point I don't see any reason to change our plans," BMW production chief Oliver Zipse told CNBC.

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