Plans For $1 Billion EV Investment In Mexican BMW M2 Plant Delayed

The Mexican and local governments have done all they can to meet the conditions of a possible investment, and now it’s just a case of waiting.

What reason could BMW possibly have for postponing the announcement? BMW’s Mexican plant is obviously not sub-standard. Otherwise, it would not have been tasked with building the most affordable M car.

It all boils down to the Inflation Reduction Act, which has been met with widespread criticism. Some manufacturers have caved and are in the process of setting up shop in the US, while others are actively combatting the legislation. Japan’s government has called it illegal, while companies like Nissan are looking at loopholes for volume models like the new Ariya.

The way we see it, BMW is holding off to see how all of this plays out. While the Inflation Reduction Act is meant to force manufacturers to rely less on Chinese batteries, there have been a series of unintended consequences, like fewer models qualifying for the tax incentive.