BMW is homing in on the state of Santa Catarina in Brazil as the site for its first Latin American factory, according to Reuters.
Sources have told the news agency that talks with Brazil’s state governments are likely to conclude by the end of February. BMW is leaning toward the southern state which is home to one major port and renowned for its agriculture and manufacturing wealth.
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Sources also told Reuters that the new plant would make three BMW models and one Mini variant.
The German carmaker was expected to make a final decision on a plant in Brazil late last year but steep tax increases on cars with more than 35% imported parts have delayed the process.
Late last year BMW’s chief executive in Brazil, Jorg Henning Dornbusch, said the company was in talks with the federal government to grant BMW a partial exception from the tax increase due to its investment plans in the country.
BMW sales in Brazil jumped 42% last year to 12,074 vehicles.
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