BMW shares weaker after the bad news: BMW invests millions in electric car production in Mexico

According to the automaker, the move should help boost sales of electric vehicles to half of global sales by the end of the decade.

The German luxury carmaker announced it will produce all-electric models for the new class at its San Luis Potosi plant, where BMW makes the 3 Series, 2 Series coupe and new M2. The plant employs around 3,000 people and the investment is expected to create another 1,000 jobs.

BMW is investing 500 million euros to build a new high-voltage battery assembly center in San Luis Potosi. The models in the new class are equipped with new, round lithium-ion battery cells. Milan Nedeljkovic, a member of the BMW board of directors, said that the first vehicles of the new class will come from a BMW plant in Hungary and then from Munich from 2025. Additional vehicles would come from the San Luis Potosi plant beginning in 2027.

In after-hours trading on Tradegate, the BMW share temporarily lost 0.45 percent compared to its XETRA close.

By Mauro Orru

FRANKFURT (Dow Jones)

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