BMW X5 production at Spartanburg, SC

Volkswagen manufactures in Mexico. Soon Audi will as well, and Mercedes-Benz is said to be working on a deal to assemble some of its cars at a Nissan plant in Mexico too. That leaves BMW out of the mix of German automakers building cars South of the Border, but that may soon be rectified, as well.

According to Automotive News, the Bavarian automaker is preparing to announce the site of its first Mexican assembly plant as soon as July, now just two months away. BMW already builds cars for North American consumption at its plant in Spartanburg, South Carolina, but has reportedly been keen to capitalize on cheaper labor and the benefits of the North American Free Trade Agreement to supply vehicles to the United States and Canada especially.

When BMW does announce the site of the plant – reportedly narrowed down to either Hidalgo or San Luis Potosi – it is tipped to work its way up to 100,000 vehicles per year at the new location, potentially to include the 3 Series as well as smaller, front-drive models, including Minis.