Hyundai and BMW Might Built Plants in Mexico image

Auto production in Mexico might see a boost as BMW and Hyundai plan to build plants in the second-largest economy in Latin America.

According to Economy Minister Ildefonso Guajardo, Mexico’s government has had talks with both automakers and it expects at least one of them to announce plans for a new facility in 2014. This would be the first assembly plant in the country since April 2012, when Audi presented its plans for a $1.3 billion facility it has started to construct earlier this year, which will manufacture the Q5 SUV.

Last month BMW’s top executive in North America said the automaker was planning to expand manufacturing in the country with a new plant, but that it had to deal with several things first. Hyundai also plans to implement its own new-car dealer network in the country, part of its strategy to expand its presence in Latin America.

“With both of them, there have been conversations with us for future plants,” Guajardo said in reference to BMW and Hyundai. “I cannot talk for them, but I think that starting 2014 we’ll have new announcements. At least for one.”

Mexico’s auto industry has already reached export and production records in 2012, and with the new BMW or Hyundai plant production will be further increased. Auto output in Mexico jumped 4.4% during the first eight months of the year to 1.99 million units sold, according to the Mexican Automobile Industry Association.