The Transformation of San Luis Potosí: From Desert to Auto Production Hub

Just a few years ago, this arid stretch of desert, located 250 miles north of Mexico City, was largely inhabited by rattlesnakes, coyotes, and sparse cactus vegetation. Fast forward to today, and it stands as a shining example of Mexico’s burgeoning role in the global automobile industry.

In 2019, BMW inaugurated an expansive factory complex in this region, situated near the city of San Luis Potosí. This facility, as pristine and advanced as those found in Bavaria, is dedicated to manufacturing luxury sedans that cater to markets across the United States, Europe, China, and numerous other countries.

San Luis Potosí is not alone in this automotive evolution; it has become one of several Mexican cities that have earned the nickname “Little Detroit.” Here, various brands, including Volkswagen, Audi, Mercedes, Ford, Nissan, and Chevrolet, have established production lines. In the first nine months of this year alone, Mexican factories produced over three million vehicles, with two million of those exported to the United States, as reported by the Mexican Automobile Industry Association.

However, the critical role that Mexico plays in the global auto industry is now facing significant threats. President-elect Donald J. Trump has made headlines with his proposals to impose hefty tariffs, potentially reaching 100 percent or more, on vehicles manufactured in Mexico. Such measures would contravene the trade agreement negotiated by his administration with Canada and Mexico.

The implications for the automotive sector could be devastating, leading to increased prices in the United States for popular models such as the Ford Maverick pickup, Chevrolet Equinox SUVs, and various iterations of Ram trucks. The BMW factory in San Luis Potosí currently employs around 3,700 individuals, showcasing the scale and importance of this facility in the broader context of the industry.