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According to German paper Handelsblatt, Mexico is the top contender for a new facility, which will reportedly assemble BMW's 1-Series and 3-Series models. BMW is also considering adding output in Mexico to supplement an upcoming MINI plant in Born, Netherlands.

Moving production to Mexico from Europe would allow BMW to sidestep the strong Euro, and thereby reap increased profits from vehicles that have traditionally been its lowest margin vehicles.

Many of BMWs rivals already have functioning factories in Mexico. Audi will begin assembly in San Jose Chiapa in 2016, and Mercedes-Benz and Infiniti will commence joint production in Aguascalientes before the end of the decade.
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