The next time you make a purchase of a BMW X5->ke326, X6->ke2396, and the soon-to-be-released X3, don’t act the least bit surprised when you find out that some of the parts that make up your beloved new SUV are made in Mexico.

According to Autonews, BMW->ke178 is looking into making a sizable investment, somewhere around $1 billion, into Mexican suppliers to build a number of parts for the German manufacturer’s new line of sports utility vehicles. A number of reasons have been traced as to why BMW is close to deciding on tapping into a new market, foremost of which is the fact that labor rates are relatively cheaper compared to both the US and German markets. Another reason that can be attributed to this move is that, by producing these parts in Mexico, it becomes geographically near to the company’s production facility in South Carolina where the SUVs are being produced.

Add both of these factors to the fact that BMW is looking at lowering its expenses to about $5 billion in two years time and it becomes increasingly clear as to why the German manufacturer is close to infusing about $1 billion into Mexico. Sound move, if you ask us.

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