Mercedes-Benz is the latest luxury automaker reported to be eyeing production in Mexico, a move that would help it lower production costs, hedge against currency fluctuations and improve logistics.

So far Audi is the only luxury automaker to have confirmed plans to build new production facilities in Mexico. The automaker recently announced it will be constructing a plant in the country that will be online by 2016.

BMW and Infiniti, meanwhile, have recently been reported to be considering production of some of their respective models in Mexico, and now Mercedes-Benz is reported to be considering the same.

The information was first reported by Mexican daily El Financiero, citing Pedro Tabera, the chief of Mercedes’ Mexican operations.

He said various alternatives are being considered, including production with alliance partner Nissan, which already has a plant in Mexico.

An anonymous official at Daimler, Mercedes’ parent company, has also revealed to Reuters that there was a good chance Mercedes might enter a joint production agreement with Nissan in Mexico.

Nissan’s upmarket Infiniti brand will soon launch a new compact car utilizing the platform found in the Mercedes CLA Class and other compacts from the German automaker. But while the new Infiniti compact has been confirmed for production in the U.K., it’s possible versions for the Americas could end up being produced in Mexico. This could also pave the way for Mercedes to start production of its compacts in Mexico as well.


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