German supplier Robert Bosch is preparing an investment push in Mexico to build car parts for a growing North American market, a German newspaper reported.

Bosch plans to invest €400 million ($546 million) in Mexico over the next few years and create 3,000 new jobs there by 2017, CEO Volkmar Denner was quoted as saying by the Stuttgarter Zeitung on Wednesday.

As part of the expansion plan, Bosch will build a research and development center and increase its production capacity, Denner said.

Bosch is the latest in a growing list of companies putting money into the auto industry in Mexico.

BMW said on Monday it would make an announcement in Mexico on July 3, all but confirming a widely expected decision to build a new factory to meet growing demand for premium cars, shortly after its rival Daimler announced similar plans.

Manufacturing in Mexico allows European carmakers to sell vehicles in the United States while avoiding some of the currency and tariff costs that crimp profits on imports. Mexico also offers lower labor costs than Germany and the United States.