A Mexican government official says BMW wants to increase the North American content of vehicles built in U.S. plants by investing in Mexican suppliers.
The German automaker may invest more than $1 billion to prepare Mexican auto-parts companies for the job, said Gerardo Ruiz Mateos, Mexico's minister of the economy.
"They want to increase the production of auto parts here," Ruiz told Bloomberg. He said he's going to Germany soon to discuss the project with BMW.
BMW is purchasing more supplies outside Germany as part of a goal to lower costs by almost $5 billion by 2012 and to reduce the impact of foreign currency swings on earnings. By buying parts in Asia and North America, Herbert Diess, BMW's purchasing and logistics chief, said in a May 4 interview with Bloomberg, the company will reduce its currency risk by $1.23 billion by 2012.