By Drew Johnson
Friday, Sep 28th, 2007 @ 8:40 am

BMW has announced the recently confirmed BMW X1 will be built in one of its European plants. Meanwhile, BMW will outsource the production of the Mini SUV to a third party. The decision to produce the X1 in Europe was made because the automaker believes that Europe will be the vehicle’s primary market.
This announcement could indicate the U.S. will not get the X1 as an unfavorable exchange rate would likely price it out of the segment. BMW recently announced that it will shift the majority of its SUV production to the United States — BMW’s largest SUV market — so keeping the X1′s production in Europe is a bit surprising.

According to Automotive News, Reithofer failed to name which company would be producing the Mini SUV for BMW , although Magna Steyr is a leading candidate as it produced the last-generation X3 for the automaker.

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