5 Luxury Cars You Didn’t Know Were Manufactured In Mexico
When automakers look for a place to build their factories, they take into account labor costs, trade agreements, and proximity to their biggest markets. They need to build in a country that will deliver in all three areas.
Mexico offers all three attributes – low labor costs, a trade agreement with the United States, and proximity to the USA. Mexico also has trade agreements with several other countries in Asia and the Americas, making it an excellent place to build vehicles for global exports (not just to the US).
While most of the vehicles produced in Mexico are mass-market cars built for economy, there are a handful of luxury brands that build premium vehicles in Mexico. Here’s a list of five:
1. Audi Q5
Photo credit: M 93
Audi kicked off the Q5’s second generation by opening up a plant in San José Chiapa, Mexico in late 2016. Audi is the first luxury automaker in the world to open a factory in Mexico, and the compact crossover is one of the only Audi models built there. The automaker is in the process of phasing out their Q5 production in Germany and making their $1.3 billion San José Chiapa factory the sole production hub for the Q5. Audi plans to produce 150,000 Q5s in Mexico each year.
2. BMW 5 Series Security
BMW 5 series that may – or may not – have the security package. Photo credit: Manoj Prasad
BMW relies on Mexico to build their top-of-the-line 5 Series Security cars. The model is an armored version of the 5 Series built with shatterproof materials, multi-layered glass, and an attack alarm system.
The specialty facility in Toluca, Mexico works alongside BMW’s German plant. The armoring parts are prepared in Germany before being shipped to Mexico, where workers complete the final assembly stage.
3. Chevy Silverado High Country And GMC Sierra Denali Crew Cabs
While some Chevy and GMC crew cabs are made in the US, many are made in Mexico, including the top-of-the-line High Country and Denali trim levels.
A GM-owned assembly plant in Silao, Mexico manufactures some of the Silverado’s and the Sierra’s highest trim levels. The Silverado and the Sierra are usually manufactured in Flint, Michigan and Fort Wayne, Indiana, but GM also builds their four-door crew cab models in Mexico. Mexican-built crew cab Sierras and Silverados accounted for nearly 1/3rd of GM’s truck production, according to analysts.
4. Fiat 500
Now that’s Italian, right? Photo credit: The NRMA
Since 2010, all Fiat 500 cars have been manufactured in Toluca, Mexico. FCA also owns an older assembly plant that produces the Fiat 500 series, as well as the Fiat Freemont, Jeep Compass, and Dodge Journey.
Is the Fiat 500 a ‘luxury car’, per se? No. But look at it – did you really think it was made in Mexico? That car looks like it came straight from Italy!
5. Lincoln MKZ
Photo credit: Bull-Doser
Lincoln’s mid-size luxury sedan is built at Ford’s Hermosillo Stamping and Assembly Plant in northwestern Mexico. There, you’ll also find the Ford Fusion, its sister car from the Ford line-up. The MKZ isn’t a huge volume seller, but it’s a luxury car nonetheless.
BONUS – Other Models Built In Mexico Coming Soon
Mexican auto manufacturing is taking off, and in the not too distant future, most luxury brands will have production here:
- Mercedes-Benz and Infiniti have a manufacturing joint venture called COMPAS that will begin production Infiniti vehicles later this year, and Mercedes-Benz vehicles in 2018.
- BMW will begin producing the 3-series at a factory in San Luis Potosi, Mexico, in 2019.
- FCA (Fiat-Chrysler America) and VW have facilities in Mexico that could very easily be retooled to build luxury cars
- Toyota has plans to begin Corolla production in Mexico in 2019, adding to Tacoma production that already takes place in Mexico. Who’s to say Lexus isn’t on the list someday?
The fact is, automakers have a lot of great reasons to build vehicles in Mexico. If you want to learn more about why manufacturing is so popular in Mexico, check out these articles: