Volkswagen has reversed course and decided to go ahead with a station wagon version of its flagship Golf V car that will be built in Mexico, Reuters reported.

The decision reportedly means the VW plant in Puebla gets another model to go along with the New Beetle, New Beetle convertible and the Jetta, a sedan built on the same platform as the Golf hatchback and called the Bora outside the United States.

The new Golf station wagon would hit the market in 2007 if VW’s board agrees to the plan on November 12, the report said.

Reuters said the current Golf IV station wagon will continue to be built at VW’s main plant in Wolfsburg until October 2006. It sold some 28,000 of these in western Europe in the first half of this year, down from nearly 42,000 in the year-earlier period.

VW hopes the new Jetta/Bora car, set to enter the market early next year, will help improve its performance in the United States, where sales have suffered as both the current Jetta and Passat models are reaching the end of their life cycles, the news agency added.