BMW’s San Luis Potosí Plant, established after deliberations in 2014-2015, started production with the G20 sedan in 2019. It expanded to include the G42 coupé in 2021 and the M2 in 2022 amid pandemic challenges. Future plans include a Battery Module Production Center, showcasing BMW’s commitment to innovation and sustainability. The Plant emphasizes cultural integration, stakeholder collaboration, and technological advancements to ensure high-quality vehicle production.
Roberto recounted the early days of the Plant’s establishment, dating back to discussions around 2014-2015. After thorough deliberations, BMW decided to build its newest Plant in San Luis Potosí, Mexico. The Plant’s construction began with land acquisition and leveling, eventually leading to the assembly of the first model in 2019 – the G20, a four-door sedan from the BMW 3 Series. This was followed by the integration of the G42, a two-door BMW 2 Series Coupé in 2021, and in 2022, the M2 (G87), a high-performance model. Notably, the last two models were integrated during the pandemic, relying heavily on remote support and the dedicated efforts of the local team.
Looking ahead, the future is equally promising. In February of last year, Milan Nedeljkovic, Member of the Board of Management of BMW AG, announced a significant investment for the construction of a Battery Module Production Center, part of an €800 million investment plan, with €500 million allocated for the new assembly centre for high-voltage batteries and the remainder for upgrading existing facilities. This initiative underscores BMW’s commitment to innovation and sustainability.
Roberto discussed the broader trends and challenges in the automotive industry, particularly the volatile, uncertain, complex, and ambiguous (VUCA) world we live in today. The pandemic has undeniably reshaped the landscape, forcing companies to adapt swiftly to new realities. For BMW’s San Luis Potosí Plant, this meant developing a comprehensive strategy focused on cultural integration, stakeholder collaboration, and technological advancements.
The Plant’s strategy, initiated in 2021, revolves around seven strategic initiatives. A key focus is maintaining the unique culture of BMW while integrating the diverse backgrounds of its workforce. Another critical aspect is stakeholder collaboration, encompassing suppliers, government entities, employees, customers, and dealers. These initiatives aim to ensure BMW continues to produce high-quality vehicles efficiently.
Technological innovation is at the heart of BMW’s operations. The San Luis Potosí Plant exemplifies this with its “Digital Plant” approach. The Plant operates paperlessly, with digital work instructions displayed on screens at each workstation. This not only enhances efficiency but also contributes to sustainability by saving tons of paper daily. Additionally, BMW employs advanced technologies like HoloLens for immersive training, machine learning for predictive maintenance, and AI applications for troubleshooting.
Roberto highlighted the Plant’s role in BMW’s electrification strategy. While the batteries will be sourced from suppliers, the San Luis Potosí Plant will handle the assembly and integration of the battery modules. This is part of a broader electrification push across BMW’s global production network, including Plants in the U.S., Hungary, Germany, and China. BMW’s strategy remains flexible, balancing internal combustion engines and electric vehicles based on customer demand.
On a personal note, Roberto expressed pride in the Plant’s achievements, particularly in developing local talent. The Plant employs 3,700 people, with 2,000 in the assembly area alone. Programs like apprenticeships, professional internships, dual education systems, and leadership development are key to nurturing talent. Almost 1,000 students have interned at the Plant, with many joining permanently. The dual education system, a German model adopted locally, has seen nine generations graduate, contributing significantly to the Plant’s skilled workforce.
Sustainability is another cornerstone of the Plant’s operations. Last year, the San Luis Potosí Plant was recognized as the most sustainable in BMW’s production network. This achievement is supported by substantial investments in technology and renewable energy. The Plant features 71,000 square meters of solar panels, and we are working to double it to cover 26% of its energy needs, significantly reducing its carbon footprint.
In conclusion, BMW’s San Luis Potosí Plant stands as a beacon of innovation, sustainability, and strategic foresight. The Plant’s journey from inception to its current state reflects BMW’s unwavering commitment to excellence and adaptability in a rapidly changing world. With continued investments in technology, talent, and sustainability, BMW is well-positioned to navigate the future of the automotive industry.
