BMW, Mercedes Mull Adding Car Plants in Mexico

BMW AG and Daimler AG's Mercedes-Benz are separately considering the possibility of erecting luxury car factories in Mexico, Bloomberg News reports. The news service cites Carlos Guzman, head of the Mexican government's investment promotion agency ProMexico.

News reports over the past year have said Mercedes will erect an auto facility in Mexico or the U.S. or perhaps share production in Mexico with Nissan Motor Co.

BMW told Automotive News earlier this month it is assessing plant sites worldwide, including Mexico. The company needs to add capacity to reach its goal of eventually boosting output 25% to 2 million units. BMW may decide on a location by next year, the newspaper says.

AN also reports that Nissan is deciding whether to add a factory in Mexico to make luxury vehicles for its Infiniti luxury brand. The newspaper cites Infiniti chief Johan de Nysschen.

Mexico is best known as a producer of mass-market cars and trucks. But Volkswagen AG's Audi unit said in April it would build a plant at an unspecified site in Mexico to begin producing crossover vehicles in 2016 for worldwide markets. The brand cites the country's good infrastructure, competitive costs and free trade agreements.