Reports have emerged suggesting that in July, BMW will announce its intentions to create an assembly facility in Mexico.

It is believed that the BMW factory will either be opened up in the state of Hidalgo or in San Luis Potosi and when it does open, the firm will become just one of the latest in a long line of manufacturer’s heading to Mexico including Audi and Honda.

Mexico is so attractive for car manufacturers because it has a host of free trade accords, is literally just across the border from the U.S. market and labour there is cheap yet still skilled. It is hoped that the new BMW facility will produce up to 100,000 cars annually with one of the models to be produced there being the BMW 3-Series sedan.

While these reports remain unconfirmed, it wouldn’t be surprising considering that BMW announced its plans to dramatically expand its South Carolina production facility by 2016. There, BMW will invest $1 billion to help the plant produce 450,000 units annually with it being the home for the BMW X4 and the upcoming BMW X7 SUV. The Spartanburg facility has so far been responsible for building the BMW X3, X5, X5 M, X6 and X6 M models.

[Via Reuters]

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