BMW considering Mexican parts suppliers - may invest $1 billion

Your German-designed, American-made BMW may get a Spanish accent courtesy of Mexico.

According to a recent report, the company is considering investing $1 billion (€798,912,800) into Mexican suppliers who would build parts for the X5, X6, andnext-generation X3. BMW sees this as a logical move because all three models are produced (or going to be produced) at the company's Spartanburg plant in South Carolina.

As you have probably guessed, BMW is considering the investment to cut production costs. Labor rates are relatively cheap in Mexico, compared to the U.S. and Germany, and the company wants to lower expenses nearly $4.9 billion (€6,131,253,575) by 2012.

Speaking with Automotive News, spokesperson Mathias Schmidt stated "BMW has the goal of significantly raising its purchasing volumes in the NAFTA region." He added the company currently buys parts from more than 60 suppliers in Mexico.