Upmarket German auto firm Audi has announced plans to build a new production facility in Mexico.
The investment will be less than $2 billion. The exact location for the plant would be selected later this year and it will begin manufacturing an undisclosed SUV model in 2016.
In a statement, Audi Chief Executive Rupert Stadler said "As an established carmaking location, Mexico offers an excellent economic basis for Audi production operations." He added "Good infrastructure, competitive cost structures and existing free trade agreements played a significant role in the choice of Mexico."
Mexico is the second main producer and top exporter of automobiles in Latin America, with most vehicles destined for the US market.
