The current 3 Series that's sold in the US is built in Germany and South Africa, although South African production will cease after Mexican production begins. Other German car companies like Volkswagen already take advantage of Mexico's lower labor rates, growing supply network, and free-trade pacts. As a benefit, Mexico has reportedly given BMW $236 million in local aid in order to create 1,500 jobs and invest over $1 billion by 2024. As part of the deal, BMW will not have to pay state and local taxes for 10 years. The 4 Series, which is based on the 3 Series, will continue to be built in Germany, although the Mexican plant will probably have one more model along side the 3 Series.
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