FRANKFURT -- BMW Group may build Minis alongside BMW 3-series and 1-series cars at a new plant in Mexico, a German newspaper reported.
BMW CEO Norbert Reithofer has said the company will need an additional factory in North America to meet rising demand, but so far, the company has not said whether it favors Mexico or the United States for the plant. The automaker also has not said which vehicles it would build there.
Handelsblatt said BMW executives favor Mexico for the factory and that the company is considering building Minis and its smallest BMW brand vehicles there because these are lower margin vehicles and building them locally would boost profits.
The BMW supervisory board will make a decision on the plant in the second half, the paper said in a report published Wednesday, May 14, citing company sources.
A BMW spokesman declined to comment, telling Automotive News Europe that the report was "mere speculation."
BMW currently builds Minis in Oxford, England, but the plant has reached its capacity of about 260,000 units per year. The company is adding Mini production in the Netherlands.