Brazil seems to be the new Eldorado (or Shanghai…) for carmakers, especially those active in the premium segments. The BMW Group is next in line to take advantage of the country’s growing economy by building a new manufacturing facility to boost its local sales.

After a meeting with Brazilian President Dilma Rousseff in the capital city of Brasilia, on Monday, BMW board member Ian Robertson confirmed the company’s plans.

“We welcome the new framework for investments in Brazil, based on the recently adopted “Inovar Auto” legislation,” said Robertson. “We have submitted an investment proposal for our planned new plant to the Brazilian Government.”

Though still subject to final approval by the Brazilian Government, BMW said that negotiations with the State Government of Santa Catarina are already well underway for the new plant in the Joinville region.

The German automaker’s plans call for a total investment of more than €200 million (US$260 million) over the next few years to have the facility ready by 2014. The new site, which will create over 1,000 direct jobs and many more within the supplier network, will produce approximately 30,000 vehicles per year.

“Brazil is a market with tremendous potential for the future for the BMW Group. For that reason, we are strengthening our long-term commitment to this country,” Robertson explained.

He continued: “This will create the necessary conditions for us to maintain the balance of sales between Europe, Asia and the Americas – and, therefore, for the long-term success of our company. With this move, the BMW Group is applying its strategic principle of ‘production follows the market’, which has already proved successful in markets such as the U.S., China and India.”

Currently, the BMW Group’s manufacturing network comprises 29 production and assembly facilities in 14 countries around the world.

The BMW Group sold 15,214 vehicles in Brazil in 2011, which represents a growth rate of close to 54 per cent over the previous year.

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