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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.

Is BMW the only real competition to Tesla Motors?

Tesla Motors chief Elon Musk probably isn't losing a ton of sleep over the new plug-in efforts by the makers of the "Ultimate Driving Machine," but maybe he should. That's what the Motley Fool is saying, presenting the case that the California company's real competition will come from BMW. What about the plug-in efforts of General Motors or Ford? Musk can hit the snooze, Motley Fool says. Unlike automakers that are "jamming battery packs into the existing vehicle design," BMW has built its i3 battery-electric and i8 plug-in hybrid supercar from the ground up. Like Tesla, BMW puts its battery packs into the floor of its vehicles. Most importantly, the i3 - and especially the i8 - are real performers. While the i8 is about 40-percent more expensive than the Tesla, it matches the Model S's 0-60 mile per hour acceleration times and handily beats its top speed figures. Tesla sold about 6,900 vehicles during the last three months of 2013 and BMW had more than 10,000 i3 orders on the books by late November and the first year's allotment of i8s is already sold out. The German automaker has what the Fool calls an "outside chance" of selling more plug-in vehicles than Tesla by next year, but Tesla is gearing up its gigafactory to get ready to sell a half-million EVs in 2020, so the race is most certainly on. You can read more over on the Fool.

BMW i3 REx rated at 117 MPGe, 39 mpg with 72-mile EV range

The numbers haven't made their digital way to the EPA's website yet, but we can now confirm that the BMW i3 with range extender will be officially rated at a combined 117 MPGe with 39 mpg once the battery runs out. That puts the amazing little city car just ahead of the pure-electric Fiat 500e (116 MPGE, combined) and behind the Honda Fit EV (118) and the Chevy Spark EV (119). In the plug-in hybrid category, it's at the top of the class, beating out the Honda Accord PHEV, which is rated at 115 MPGe but is also a much bigger vehicle. The i3 REx also has an official all-electric range of 72 miles and can go another 78 on gas (for a total of 150). When it's not carrying around the extra fuel tank and engine, the all-electric i3 gets 124 MPGe (combined), which is the currently the highest in the US. The i3 EV also has an all-electric range of 81 miles. BMW expects to deliver the first i3 REx in the US this week and delivered the first all-electric version earlier this month. There was a bit of a hold-up on the range-extender version thanks to a delay with getting these EPA numbers. Now that all the bureaucratic boxes have been checked, it's off to customer driveways they go.