BMW will invest $860 million in North American production of Neue-class electric cars.

BMW's next-generation EV family, code-named Neue Klasse, will have North America as one of its production sites.

BMW announced last week that it will invest 800 million euros (about $860 million) to expand its vehicle plant in San Luis Potosi, Mexico.

The investment will add production facilities for the Neueclasse EV and batteries, with the Neueclasse EV using BMW's high-density round cell system. Once the expanded plant is fully operational, it is expected to create approximately 1,000 jobs.

BMW states that one of the main reasons for choosing the Mexican plant is its high flexibility. In other words, only minor adjustments are needed in the body shop and assembly plant to accommodate the Neue Classe platform, which integrates the battery directly into the vehicle structure, according to BMW.

The first EVs will be built there in 2027; BMW announced last June that Neueklasse EVs will be produced first at a new plant in Debrecen, Hungary, starting in 2025, and at an existing plant in Munich, Germany, starting in 2026.

BMW also plans to expand EV production at additional sites, including a plant in Spartanburg, South Carolina; BMW announced last October that it would invest $1.7 billion in this US plant to add EV and battery production. The plant is expected to produce six EVs by 2030, most of which will be electric versions of existing SUV models produced at the plant.

BMW CEO Oliver Gipse said last August that the first Neue Klassen EV will be a sedan in the 3 Series segment, followed by a sporty SUV. This suggests that it could be a version of the upcoming 3 Series and X3.

BMW presented the i Vision Dee concept at the 2023 CES in January to preview the digital features that will be available on the Neue Classe EV.