Stuttgart, Germany  - Daimler is studying plans to build a car factory using low-cost labour in eastern Europe, with options to be presented to its board on Monday, two German magazines said Saturday.

Poland, Romania and Hungary were under consideration as locations, said the fortnightly Auto Motor und Sport and the weekly Automobilwoche. Auto Motor und Sport said Serbia was also in the running. Both suggested Romania was the least favoured location.

Mercedes Car Group needed a second factory to build the next generation of its A-Class and B-Class cars while continuing to manufacture at its car factory at Rastatt, Germany. A new site would allow a wider range of models and lower production costs.