A few months ago we reported that BMW was considering building a new plant in Mexico for production of its 3-Series. While that option may still be on the table, the automaker has confirmed this week that it will build a new plant in Brazil for an undisclosed model, pending approval from regulatory authorities.

The move is part of BMW’s strategy to ‘allow production to follow the market’, which has so far proven successful here in the U.S. as well as in China and India.

BMW sees tremendous growth opportunities in Brazil and neighboring South American markets. Last year the automaker sold 15,214 vehicles in Brazil, an increase of almost 54 percent on the previous year, and this figure is expected to grow significantly in coming years.

BMW has submitted an investment proposal for its plans to the Brazilian government, and if all goes to plan the new plant could be operational by as early as 2014. The investment over the next few years would total 200 million euros (approximately $260 million) and create more than 1,000 jobs.

Plans call for a production capacity of approximately 30,000 vehicles per year, though this could be ramped up over the years. Once built, the plant will extend BMW’s production network, which currently comprises 29 production and assembly facilities in 14 countries, and includes an existing motorcycle plant in Manaus, Brazil.