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BMW reveals $1 billion Mexican plant investment

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NEW YORK – Luxury car maker BMW revealed a $1 billion Mexican plant investment on Thursday, becoming the latest major automaker to take advantage of the country’s growing industrial base and tariff-free access to the U.S. market.

BMW outlined plans to build a factory in the central Mexican city of San Luis Potosi, reducing the German company’s dependence on higher-cost plants at home.

The plant will begin assembling models in 2019 with an initial workforce of 1,500 and annual production capacity of 150,000 vehicles, the company said.

“Mexico is an ideal location for the BMW Group,” production chief Harald Krueger said in a statement. “We are continuing our strategy of ‘production follows the market.'”

Germany’s luxury car makers – BMW, Audi and Mercedes-Benz – are expanding overseas as their domestic plants struggle to meet strong demand for new vehicle offerings in the United States and Asia.

“With this investment, Mexico is stepping up to premium-level production of global vehicles,” Mexican Economy Minister Ildefonso Guajardo said as the plant was announced.

BMW did not reveal what type of vehicle it will build, and a spokeswoman for the company said no decision had been made. But several Mexican and European officials at the presentation said they believed the plant would produce 3 Series cars.

“At some point I heard that they were talking about the 3 Series,” Guajardo told reporters after the event. “But I don’t have the official confirmation.”

Guajardo added that at least one other big auto investment would be announced this summer but did not elaborate. Reuters reported last month that Kia Motors Corp plans to break ground soon on a new plant in Mexico.

Mexico’s auto sector is gaining critical mass as more global brands open production lines, boosting the supplier network.

BMW’s move comes days after Daimler announced new Mercedes production in Mexico with partner Nissan Motor Co Ltd, which already operates two plants in the country where it had recently increased capacity.

“The premium brands are finally realizing that Mexico has the capacity to build signature vehicles,” IHS Automotive analyst Guido Vildozo said.

“We are going to see all these plants starting with one or two products at the very beginning, but they will gradually become critical pillars of profitability for the premium manufacturers,” he added.

Mexico benefits from tariff-free exports to the United States as well as Europe, while its factories are beyond the reach of the United Auto Workers union, which has been struggling to boost its influence in the U.S. South.

BMW’s investment comes amid a domestic industrial cost review that has some German unions worried about their longer-term outlook, as the company reduces reliance on sluggish European markets that still account for 44 percent of sales.

The plant also increases BMW’s bet on the United States, which is the world’s largest luxury-car market along with China.

In March, BMW announced a $1 billion investment to expand capacity by 50 percent at its plant in Spartanburg, South Carolina, where it builds a range of sport utility vehicles.

– REUTERS

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FCTA Pulls Plugs On Taxi Rank, Terminal Services Contracts

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The Federal Capital Territory Administration (FCTA) has ended contracts with taxi rank and terminal operators due to their failure to meet engagement terms and conditions.

Mr. Ubokutom Nyah, the Mandate Secretary of the Transportation Secretariat, FCTA, made this announcement during a meeting with managers of these terminals and taxi ranks in Abuja.

Nyah clarified that due to the operators’ failure to fulfill their engagement terms, the FCTA had to terminate their contracts.

He instructed them to transfer control of the ranks to the Administration within three months, starting from Nov. 21.

He lamented the presence of unauthorized motor parks in the city and assured the readiness of the Administration to establish proper taxi ranks and terminals in the capital.

He revealed that personally visiting the city’s taxi ranks, terminals, and unauthorized motor parks gave him direct insight into the poor condition of these facilities.

He emphasized that as the federal capital city, Abuja deserves better, highlighting that the poor condition of these facilities attracts various criminal elements.

He said “We must rid Abuja of all these. I have gone round the taxi ranks, and of all the places I visited, not one is worthy to be called even a village motor park.”

The Mandate Secretary stressed that the intention wasn’t punitive; rather, it aimed to revamp the sector, introduce new engagement terms, and modernize taxi ranks and terminals in the federal capital.

He also highlighted the plan to increase the number of terminals and ranks where necessary, which would positively impact the administration’s revenue.

He emphasized that this measure was part of a broader effort to eliminate illegal motor parks in Abuja and curb the associated criminal activities.

In response, Mr. Adebisi Lawal, the Operator of Jahi Taxi Rank, praised the administration’s initiative to modernize the taxi ranks and terminals.

Lawal urged the administration to prioritize current operators’ involvement in the selection of new developers for the modernization of the taxi ranks and terminals.

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Power Show Sees Soldiers Batter LASTMA Officer

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It was a show of power at the Ojota area of Lagos on Monday as soldiers pummeled an officer of the Lagos State Traffic Management Authority, (LASTMA).

Eyewitness accounts claim that the ugly scene played out around 8am, and saw about eight soldiers pounce on the yet to identified LASTMA official, while his colleagues took to their heels.

The video of the melodrama has gone viral, where the LASTMA official was appealing to the soldiers, who appeared bent on ‘teaching him a lesson’.

This onslaught comes on the back of a reported assault of a soldier at the same location by LASTMA officials last week.

It would appear that what played out today was the army asserting its authority and defending their khaki as the armed soldiers carried out what looked like a revenge mission.

Eyewitnesses further averred that the victim was rushed to a nearby hospital, after the soldiers left the scene.

It was gathered that the authorities at LASTMA has reported the incident to the military authorities who are said to be looking into the matter.

Meanwhile many members of the public are rejoicing that the soldiers have taught the crude LASTMA official that power is stronger than power, for all their atrocities against motorists on Lagos roads.

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Intra-City Fares Skyrocket By 98% Month-On-Month – NBS

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Kogi, Ogun, Cross River Propel Mining Sector’s 17.95% Growth – NBS

The impact of the removal of subsidy on Premium Motor Spirit (PMS), otherwise known as petrol, has seen the pump prices of the product skyrocket with a corresponding increase in the cost commercial transportation in Nigeria.

According to the National Bureau of Statistics (NBS), intra-city bus transportation fares across Nigerian cities, measured between May and June 2023, increased from N649.59 to N1,285.41 in June 2023.

This translates to 98 percent growth or N635.82 within the month in view.

The NBS made the data available in its Transport Fare Watch report for June 2023.

In the report, the NBS also shared the breakdown of bus journeys within the cities per drop for constant routes; bus journey intercity (state route); charges per person, amongst others.

On a year-on-year basis, the report has it that bus fares rose by 120.63 percent from N582.61 paid by commuters in June 2022.

The average fare paid by commuters for bus journey intercity per drop rose to N5,686.49 in June 2023 compared to N4,002.16 in May 2023 indicating an increase of 42.09 percent, month-on-month.

The report read, “The average fare paid by commuters for bus journeys within the city per drop increased by 97.88 per cent from N649.59 in May 2023 to N1,285.41 in June 2023.

On a year-on-year basis, it rose by 120.63 per cent from N582.61 in June 2022.

“In another category, the average fare paid by commuters for bus journey intercity per drop rose to N5,686.49 in June 2023, indicating an increase of 42.09 on a month-on-month basis compared to N4,002.16 in May 2023.

“On a year-on-year basis, the fare rose by 55.25 per cent from N3,662.87 in June 2022.”

Biztellers reported that the twin forces of forex pressure and increasing price of Brent in the global market would likely see the pump prices of petrol, increased again in no distant time in Nigeria.

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