Volkswagen is likely to opt for Huntsville, northern Alabama, instead of Chattanooga, Tennessee, for its new US car plant, it was reported on Friday.
Automotive News Europe said its Automobilwoche sister publication had obtained the information from “sources with direct contact to management board members”.
Volkswagen has a plant in Mexico and last operated a factory in Pennsylvania in the 1980s.
It wants to again operate a plant in the US as a hedge against the high euro vs the dollar and to give it greater flexibility in a key export market.