Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Bombardier Recreational Products (BRP) has announced it’s building an auto plant in Mexico to meet demand for its off-road vehicles business.


The firm will invest $136.1mn to develop its new facility in Juárez, located in the northern state of Chihuahua, Bombardier said in a statement.


The construction of the new auto plant is scheduled to start within the next months, the company added, without disclosing a specific date. However, it noted that the facility is expected to be operational by autumn 2021.


The company did not disclose the plant’s production volumes nor its installed capacity, however, the plant will create up to 1,000 permanent jobs.


The company’s retail sales increased by 35pc on an annual basis in May, despite the COVID-19 crisis causing slowdowns, Bombardier said.


With the construction of this new plant, the company will have three car facilities in the city of Juárez, which is near the US border.


Mexico’s car output, exports, and sales fell on an annual basis in June because of the pandemic and lower demand from North and Latin America.


Car production fell by 29.2pc to 238,946 cars in June, down from 337,721 vehicles produced during the same month last year, while auto exports dropped by 38.7pc to 196,173 from 320,470 during the same period, the National Institute of Statistical and Geographic Information said on July 7.

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