Categories: Cars

Inside BMW’s San Luis Potosí Plant: A Commitment to Sustainability and Innovation

Since BMW’s San Luis Potosí plant opened its doors in 2019, the high-tech factory has become a leading example of sustainable car manufacturing and deep-rooted community engagement. Located in eastern and central Mexico, and bordered by seven other Mexican states, this fairly new BMW plant produces the 3 Series for North and South America, and now also builds the M2 and 2 Series Coupe—two models exclusively manufactured in Mexico and exported globally.

In alignment with BMW’s ambitious environmental goals and corporate social responsibility, the plant operates with the highest standards of energy efficiency, water conservation, and social responsibility. The BMW Group’s decision to invest over $1.5 billion here has not only bolstered its production network but also transformed lives in the surrounding region. We’d been meaning to visit the plant for many years now, so we were genuinely excited to join BMW for two days during what they called “Responsibility Days.”

One of the Largest Investments in a Factory

The San Luis Potosí plant is one of BMW’s most significant investments in North America, covering 300 hectares and employing over 3,700 people, 36% of whom are women—a figure that stands as a benchmark for workforce diversity within BMW’s global network. With a production capacity of more than 450 units daily and over 400,000 vehicles produced as of September 2024, the plant has become a key contributor to BMW’s global supply chain. The plan serves over 80 markets.

Led by CEO and President Harrald Gottsche, the facility supports the region through job creation, local supplier partnerships, and community investment. Under Gottsche’s leadership, the plant is now expanding to include high-voltage battery production, making the plant the first in Mexico to assemble batteries. So it comes as no surprise that BMW’s San Luis Potosí plant is preparing to play a central role in the production of the upcoming Neue Klasse.

The new expansion, spanning 80,000 square meters, will add crucial capacity to its global network of EV battery plants. Initially, there will be one shift working on the battery assembly line, but a second shift will be added in the future bringing the total capacity to 140,000 battery packs.

Energy Efficiency and Clean Energy

The plant operates on 100% renewable energy, with a vast 71,000-square-meter solar panel installation providing 30% of its electricity needs. This solar setup plays a major role in supporting BMW’s aim to cut CO₂ emissions per vehicle produced by 80% from 2019 levels by 2030. Additionally, the plant uses a digital twin technology to optimize energy consumption and resource management across its 300-hectare site, further enhancing efficiency.

Located in a water-scarce region, the plant has implemented a “waterless” production system that recycles water and requires no freshwater for its industrial processes, reducing traditional water consumption by 40%. Additionally, to reduce waste, BMW has established a packaging recycling system that reuses 100% of its packaging materials. Furthermore, optimized logistics processes contribute to BMW’s target of halving CO₂ emissions in logistics by 2030.

First interesting tidbit of the day: The Paint Shop uses a residual heat system to save natural gas.

Investing in Community: Workforce Diversity, Education, and Local Engagement

The plant’s commitment to sustainability is mirrored in its investment in community development and workforce diversity. Women represent 36% of the 3,700 employees, and the number of women in leadership roles is steadily rising, with women holding 23% of leadership positions. The plant’s workforce also spans 15 nationalities, with Millennials making up 62% of the employees.

During several workshops, we met a large number of engineering students enrolled in the BMW Group Talent Campus apprenticeship program. A lot of these students joined the training program with no prior automotive experience, but the intensive and high-tech program prepares them for their next journey. Among many automotive topics, the students learn 3D printing, AI and Virtual Reality environments, and even how to train robots for the assembly line.

Next on our visit list is the BMW Group’s Dual Program which supports workforce development by providing technical training to young people. Since the program began nearly five years ago, 51.5% of its participants have been women—above the industry average in Mexico. This program is instrumental in preparing local talent for high-skill jobs in advanced manufacturing, with more than 500 students benefitting to date. There are 15 training rooms and labs with a capacity of 400 concurrent people.

Another interesting tidbit: Mexico is the eight country with most STEM graduates, ahead of France and Germany, for example.

The BMW Group’s Community Partnerships

BMW’s commitment to community development goes beyond workforce training. In partnership with UNICEF, BMW supports initiatives that enhance the quality of life and opportunities for children and young adults in the region. Additionally, under Gottsche’s leadership, BMW transformed one of its original construction sites into a branch of the Club de Niños y Niñas (Boys and Girls Club). This facility, serving over 250 children from low-income families, provides educational and recreational activities that build skills and open pathways for future careers, potentially even at BMW.

Gottsche was joined on stage by Ilka Horstmeier, Member of the Board of Management of BMW AG, People and Real Estate, Labour Relations Director, who spoke at length about the success of this program. So far, over 200 children have benefited from scientific activities, recreational activities, nutrition, mathematics, art and music courses, among other things.

“You can’t come into a market and take what we need to operate and not do anything for the market or invest in the community,” Gottsche said. “So when it came time to decide what to do with that facility, instead of closing it, we renovated it and gave it to the Boys and Girls Club to support this community in another way.”

Strengthening Local Supplier Partnerships and Global Networks

Working with over 100 Mexican suppliers, the San Luis Potosí prioritizes local sourcing to reduce transportation emissions and stimulate the regional economy, according to Oliver Haase, SVP Purchasing, Quality and Supplier Network BMW Group Americas. To further support supplier development, BMW established the Emerging Markets Talent Fund (EMTF), which helps local suppliers adopt advanced manufacturing techniques and encourages innovation in sustainability. This fund ensures a resilient, sustainable supply chain while enhancing Mexico’s manufacturing capabilities.

BMW says 85 Mexican suppliers are currently delivering parts to the plant. This supplier base, primarily located in Mexico’s Bajío region, enhances BMW’s supply chain stability while supporting local economic growth. A new interesting tidbit: 31 of these suppliers are located in San Luis Potosí.

The plant’s connection to BMW’s global production network is also evident in its talent exchange initiatives. Currently, 165 associates from San Luis Potosí are sharing their expertise in BMW facilities in Leipzig and Regensburg, Germany, as well as Debrecen, Hungary, and plants in China.

Cubing

The last stop in the Responsibility Days tour is a quality control one. CUBING is BMW’s commitment to a “zero defects” approach, serving as an ultra-precise tool to assess the quality of each component. Even the smallest deviations in dimensions or drill positions of body parts fall short of the strict standards that CUBING enforces.

Essentially, before starting full-scale production or implementing updates, BMW receives sample parts from its suppliers to test their compatibility with the structure of a new model. These parts are carefully installed to evaluate their fit and overall finish. Using a 3D scanner, BMW conducts detailed measurements to confirm alignment with the body, taking paint thickness into account where necessary. If any part does not meet strict tolerance requirements, BMW works directly with the supplier to refine and adjust it to meet exacting standards. We will have more details on CUBING in a separate article.

Next Milestone

The next milestone for the BMW San Luis Potosí plant is in 2027 when the Mexico-based factory will begin producing their first Neue Klasse model. The electric crossover (its name has not been confirmed by BMW) will hit the assembly line about two years after it enters production in Debrecen. Initially, the model (which we believe is called iX3 with codename NA5) is going to be exclusively built at BMW’s new factory in Hungary.

San Luis Potosí is not the only BMW factory in North America that will build electric vehicles. The Spartanburg plant will make six EVs by the end of the decade.