BMW to build new plant in Mexico?

BMW might be eying a new plant in Mexico.

BMW, the world's largest premium automaker, is strongly considering building a new production facility in Mexico, a new report finds.

In order to keep up with booming demand BMW is looking to add at least one more global production facility, with Mexico shaping up to be the leading candidate. BMW is also looking at locations in Slovakia and Hungary, but the German automaker is reportedly leaning towards a location outside of Europe due to the continent's debt crisis.

BMW would prefer to build the new plant in Brazil rather than Mexico, according to Reuters, but the South American country has so far been unwilling to enact policies that would allow BMW to produce vehicles profitably there.

Mexico would be a solid second choice for BMW as the country has relatively few import duties and a strong supplier base. In fact, BMW rival Audi recently announced plans of its own to build a production facility in Mexico.

It remains unknown what vehicle BMW might produce at the new factory.