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BMW confirms new Mexican plant

After over a year of speculation, BMW is finally officially announcing that it's building a factory in Mexico. The new plant will cost the German automaker roughly $1 billion US and will have a capacity of about 150,000 vehicles a year when complete. However, production won't begin there until 2019.
The new factory is being built near the city of San Luis Potosí, Mexico, with plans to employ about 1,500 people. Unfortunately, BMW is still mum about which models it's producing south of the border. Earlier rumors indicated the possibility of the 3 Series, 1 Series and maybe even Mini models there.
BMW says Mexico's multiple free trade agreements are a major factor in the choice of location of the plant. They make it possible for the automaker to ship models more cheaply to North America, parts of South America and the European Union. "The Americas are among the most important growth markets for the BMW Group. We are continuing our strategy of 'production follows the market,'" said Harald Krueger, the board's head of production, in the company's official announcement.

BMW M135i vs. Mercedes A45 AMG in Euro small-lux throwdown

BMW and Mercedes-Benz - please, please, please bring the M135i and A45 AMG hatchbacks to North America. For as long as we can remember, buyers in the New World have been forced to look longingly at Europe and Great Britain and the excellent super hatches that are so routinely offered there. And while we're quite content with the Ford Focus ST and Volkswagen GTI, having a 360-horse five-door with a premium, content-rich interior sounds quite nice.
Our envy for Europe has grown after watching the latest video from Drive, which stars Chris Harris, the Mercedes-Benz A45 AMG and the BMW M135i. This latest battle between MB and BMW takes place on both road and track, with Harris providing a running commentary. If you're interested in the upcoming Mercedes CLA45 AMG, you should pay special attention to the section on the A45, as the two are essentially fraternal twins. While the video is a bit on the long side, it provides a comprehensive rundown of both cars, giving those of us in North America just a small taste of what we're missing. Check it out by scrolling below.

Toyota-BMW sports car to gain all-wheel drive, supercapacitors?

Sales of salt are skyrocketing following the latest rumor of the planned joint-venture sports car from Toyota and BMW. The whisperings indicate that project will spawn both a replacement for the BMW Z4 and a long-awaited Toyota Supra successor based on the FT-1 Concept shown above. Word is that the new cars will feature front-engine, all-wheel-drive layouts with plug-in hybrid technology. This news would appear to run somewhat counter to earlier reports that BMW and Toyota are teaming for a six-figure hybrid supercar.
According to Autocar, the project will benefit from the experience Toyota gained with the TS030, its hybridized Le Mans prototype. The evidence for this is, of all things, a Toyota Yaris - in particular, the Yaris Hybrid R that was shown at the 2013 Frankfurt Motor Show last September. That car used a 300-horsepower, 1.6-liter gas engine, while a pair of 60-horsepower electric motors provided all-wheel-drive push (an additional motor also sent additional juice to the front axle). The 414-system-horsepower drivetrain used supercapacitors in place of the traditional lithium-ion batteries of traditional hybrids.
For the production sports cars, Autocar claims that the Yaris Hybrid R's setup will serve as the basis for the new powertrain, although it won't be a direct carryover. Instead, a 2.0-liter BMW engine will be paired with Toyota-designed, BMW-built motors.