How BMW’s Manufacturing Flexibility Could Bring MINI Production to Mexico

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MINI has moved from playing checkers to chess in planning its next generation of EVs, and a key part of that strategy is avoiding potential tariffs. That’s why the idea of manufacturing MINIs in Mexico is beginning to look like a possibility.

In the ever-shifting landscape of international trade, automakers must be nimble. With supply chain disruptions, fluctuating tariffs, and evolving government incentives, having a flexible production strategy is not just beneficial—it’s essential. For BMW, its global manufacturing footprint provides the adaptability needed to navigate these challenges. And for MINI, this flexibility could be key to avoiding tariffs and ensuring the long-term viability of its future models.

BMW’s Global Production Footprint: A Strategic Advantage for MINI

BMW’s worldwide production network includes over 30 facilities across key markets in Europe, North America, and Asia. This network allows BMW to shift production between plants as market conditions change, minimizing costs and avoiding trade barriers.

One standout example is BMW’s Plant Spartanburg in South Carolina, which has been the company’s largest globally since 2024. The plant produced nearly 500,000 vehicles in 2024 and exported approximately 225,000 units, making it a significant contributor to BMW’s U.S. footprint. Given its scale and infrastructure, Spartanburg could be an option for future MINI production, but BMW has traditionally reserved it for larger vehicles, including SUVs like the X3, X5, and X7.

That’s where BMW’s San Luis Potosí plant in Mexico comes into play.

San Luis Potosí: A Potential Home for a Neue Klasse-Based MINI Countryman?

BMW’s plant in San Luis Potosí, Mexico, is a state-of-the-art facility that has played a growing role in BMW’s global strategy. The plant, which opened in 2019, was initially focused on 3 Series production, but BMW has since expanded its capabilities.

In a major announcement, BMW confirmed that the San Luis Potosí plant will begin producing fully electric vehicles of the Neue Klasse platform starting in 2027. This is a pivotal shift, as it means the plant is being equipped to handle BMW’s next-generation EV architecture—one that is likely to underpin some of not all future MINI models. Why it makes sense for the Countryman specifically is all about what the North American market buys – crossovers. Which means BMW would be focused on maximizing profitability on a core model for North America. How might it be more profitable? Let’s break it down.

Why San Luis Potosí Makes Sense for MINI

1. Tariff Avoidance – Mexico has favorable trade agreements with both the U.S. and Europe, including USMCA (United States-Mexico-Canada Agreement) and the EU-Mexico Free Trade Agreement. This makes it an ideal production site for a vehicle like the MINI Countryman, which is sold in both markets.

2. Lower Production Costs – Compared to European factories, Mexico offers significantly lower labor costs while maintaining high-quality manufacturing standards. This could help keep MINI’s EVs competitive in price, especially given the premium positioning of the brand.

3. Proximity to Key Markets – The U.S. is MINI’s second-largest market, and with the Inflation Reduction Act (IRA) incentivizing locally produced EVs, manufacturing in Mexico could give MINI a competitive advantage. Additionally, a Mexican-built MINI Countryman EV could avoid potential EU tariffs on Chinese-made vehicles, which currently affect the China-produced MINI Cooper SE.

4. Neue Klasse Compatibility – The San Luis Potosí plant is already being retooled for BMW’s Neue Klasse EVs, which means it could also accommodate a future MINI Countryman based on the same architecture. Given that BMW has confirmed an electric X3-sized SUV will be built there, the production of a similarly sized MINI Countryman would be a logical extension.

Could MINI Shift Countryman Production to Mexico?

Currently, the MINI Countryman is built in Leipzig, Germany, alongside the BMW X1. However, as BMW prepares to shift to Neue Klasse-based models, Leipzig may become too constrained to handle both X1 and Countryman production—especially as demand for electrified models grows.

Given BMW’s investment in electrifying the San Luis Potosí plant, it wouldn’t be surprising if MINI eventually moved at least some Countryman production from Germany to Mexico for its next iteration. This would allow MINI to build a vehicle for North American (and potentially European customers) while sidestepping potential tariffs and benefiting from Mexico’s trade advantages.

The Bottom Line

BMW’s ability to shift production globally is a major strategic advantage, and MINI stands to benefit. With San Luis Potosí gearing up for Neue Klasse EV production, the plant could be an ideal candidate for a future MINI Countryman EV—giving the brand a foothold in North America while minimizing exposure to tariffs.

As MINI moves toward an all-electric lineup, expect more strategic production shifts that leverage BMW’s global flexibility. Whether it’s Mexico, the U.S., or even a potential return to UK production, one thing is clear: BMW’s worldwide manufacturing footprint ensures MINI remains competitive, no matter the geopolitical landscape.

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