Volkswagen is getting closer to making a decision about a US plant – according to German press reports over the weekend a decision will be made in the next six months.
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Specifically, Volkswagen Group CEO, Martin Winterkorn, told the weekly news magazine, Wirtschaftswoche, that options for a US plant are being scrutinised.
When asked recently when a plant would be built, he said that a decision had not yet been made but if the US currency rose to $1.40 to the euro then it would be considered. Demand for Volkswagen vehicles must increase first, he added.
The dollar exceeded the $1.40/EUR1.00 mark for the first time last week. The magazine said that, for demand to increase, Volkswagen would need new models for the US market. It added that the automaker is considering two sedans and two SUVs for North American production.
The Detroit News reported earlier this month that Volkswagen is planning to build a mid-size car, designed to compete with the Toyota Camry, for the US to help it increase volumes. Another crucial model for the US is the new Tiguan small SUV, the paper noted.
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By GlobalDataSeparately, Volkswagen’s US chief, Stefan Jacoby, told Auto Motor Und Sport magazine that Volkswagen needs to reduce its prices in the US to increase sales fourfold to 800,000 units by 2018.
VW operated an assembly plant in Pennsylvania in the 1970s building a Rabbit-badged version of the original Golf but closed it in the 1980s.
