MUNICH -- Beginning in August, Dutch contract manufacturer VDL Nedcar will build BMW's X1 crossover in Born, Netherlands.
The VDL Nedcar plant also produces some Mini vehicles, BMW said in a statement last week.
VDL Nedcar will share X1 production for global markets with BMW's factory in Regensburg, Germany, BMW said.
X1 sales nearly doubled in the U.S. last year to 27,812 vehicles, up 93 percent from 2015.
BMW has used VDL Nedcar as an overflow factory for Mini, whose sole plant in Oxford, England, is operating at capacity.
Strong global demand for the X1 requires more capacity to supplement production at Regensburg, BMW said. The Regensburg factory builds eight BMW models on one line.
"Over its life cycle, the main volume of the X1 will still be produced in Regensburg," BMW said.
VDL Nedcar builds Mini's three-door, convertible and Countryman models. In March, the plant will start production of Mini's first plug-in hybrid, the Cooper S E Countryman ALL4.
BMW CEO Harald Krueger told Automotive News Europe in October that the automaker needed to move some X1 production to VDL Nedcar to meet growing demand in the United States.
The Nedcar factory was previously owned by Mitsubishi, which built the Colt subcompact and the Outlander crossover models there, along with the first-generation Smart ForFour, which used the same platform as the Colt. After ending production at Nedcar in 2012, Mitsubishi sold the plant to local bus maker VDL Groep.