The consideration is due to "sustained stable sales" in the region, Daimler's Mercedes-Benz marketing chief, Philipp Schiemer, is quoted as saying in the article.

A Mercedes-Benz spokesman declined to comment on the report to Dow Jones.

Last week, Daimler's chief executive Dieter Zetsche said on-site production in foreign markets is gaining increased importance.

"We will make substantial investments in our future this year--in new products, new technology and new markets," Zetsche said last week.

In 2005, the company ceased production at a factory manufacturing A-class models in Brazil, due to weak demand.

Source: Fox Business