The spreading exchange rate differential between the strengthening euro and weakening U.S. dollar means importing European manufactured models to North America is now significantly more expensive than just a few years ago. Established import brands are already finding it tough so imagine the challenge Alfa Romeo will have on its hands with trying to juggle launching the brand and dealing with unfavorable exchange rates.

Sources have revealed Fiat will likely build a new plant in Mexico to supply cars to both North and South America. The plant would serve as a base for the local of production of both Alfa Romeo and Fiat cars, to help with Alfa’s re-launch in North America next year as well as fill demand for highly sought-after Fat models in South America, reports Automotive News.

Fiats has a number of options including buying a shuttered former Detroit 3 factory or expand one of its Case New Holland agricultural machinery plants of which there are 11 in North America. The final decision is expected by the end of the month.