Luxury Carmakers Mull Mexico Production

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

Separately, Automotive News reports that Nissan Motor Co. is studying whether to add a facility 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 broke the ice in April by saying it will build a factory 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.

BMW told AN 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 says it may decide on a location by next year.

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