BMW AG’s Leipzig, Germany, plant gets the nod as the site for production of the upcoming X1, which will slot below the X3 in the German auto maker’s growing cross/utility vehicle lineup.

BMW is in the midst of a more than €100 million ($155 million) investment to upgrade the Leipzig plant, with most of that earmarked for a new stamping line to launch at the end of 2009.

A portion of the money will be spent on expanding the body shop to accommodate door, hood and trunk-lid production.

Leipzig currently assembles 700 3- and 1-Series cars daily.