BMW's Spartanburg, South Carolina plant has been around for 22 years. In recent years, it's become one of the largest BMW factories in the world. However, in doing so, it's a bit less streamlined in its supply chain.

Being that the Bavarians are building a new plant in San Luis Potosi, Mexico, they are looking to develop a more streamlined approach to supply from the beginning and create a new, state-of-the-art North American supply base.

According to Oliver Zipse, BMW board member of production, "We will see all the latest state of the art here. Beginning in 2019, BMW will start making next-generation 3 Series in this new factory and it'll be capable of producing any rear-wheel drive based BMW moving forward if need be."

According to Zipse, the new San Luis Potosi facility will be able to produce up to 150,000 cars annually, with room for expansion. Everything from body shops to paint shops and assembly lines will be available at the Mexico plant.

This new Mexico factory will also be designed with parts and supplies coming in at one end of the plant, as opposed to the multiple "finger" approach in Spartanburg. This makes things easier, logistically, for plant workers to get the supplies they need and build BMWs. "You will have a substantial amount of direct assembly, where trucks end up at the delivery line," said Zipse.

The San Luis Potosi plant will also be located near a industrial park that supplies many components to a GM facility also nearby. So BMW will be able to take advantage of this, again making things easier, logistically. Spartanburg didn't have that luxury when it first opened, so this should help get the plant operating at full capacity quickly.

All in all, BMW is looking to invest around $1 billion into this San Luis Potosi plant. This shows how serious BMW's commitment to this plant is, as it's going to be a colossal undertaking. However, if BMW can successfully pull it off, it will pay enormous dividends in the future.