Would you buy a Mercedes-Benz if it were made in Mexico? That's what the German outfit is wondering, as it considers localizing production of its new budget model at a factory operated by Nissan, of which the automaker is a joint-venture partner.

According to a report from Automotive News, moving production of American-spec CLAs from Hungary to Mexico would protect Mercedes from currency fluctuations. "Mexico is the best location for the United States," Daimler Chairman Dieter Zetsche told AN. The CLA is also expected to become the brand's volume model in the US market, which makes North American production a logical move.

In the event that Mercedes approves the plan, Nissan would expand the capabilities at its Aguascalientes, Mexico plant, allowing production to begin in 2018.