One major portion of a company's expansion process is choosing the right location at the right time.

Reports came out last month that Aston Martin was looking to expand its company and add a second production plant, so that the car company can handle the production of several new models that Aston Martin plans on releasing in the near future. But where would Aston Martin build this new plant?

Many think that Aston Martin could build the plant in the U.S., though the company would have just as much success converting old factories in the U.K., or Europe, to fit its needs.

Aston Martin CEO Andy Palmer confirmed the rumors about a U.S. factory in an interview with Automotive News. Palmer told the interviewer that "a decision on the location will be made at the end of the year."

He also admitted that the U.S., more precisely the state of Alabama, was the "obvious choice."

Why Alabama? Palmer seems to have a number of reasons for this decision. 

According to Palmer, this new plant would be used to build an SUV based on the DBX concept car that Aston Martin premiered during the Geneva Auto Show. SUVs tend to sell well in the US and in China, so building the plant in either country would have improved sales. However, building a new factory into the U.S. is much easier than building it in China.

Palmer also said that he wants to build a plant in Alabama because of how close it is to where Daimler builds the Mercedes-Benz SUVs. Alabama also has an extensive supplier base and transport facility market for moving the products to appropriate markets.

Aston Martin plans on releasing its new line of SUVs by 2020.