Volkswagen has said it will decide in July whether to set up a US plant.

CEO Martin Winterkorn told Handelsblatt that the issue would be put to the company’s supervisory board in July. He said three US states had been short-listed – Alabama, Tennessee and Michigan.

Handelsblatt also said that Volkswagen may run the plant with Porsche, and that the plant could produce Volkswagen, Porsche and Audi models.

Winterkorn said that an Audi SUV could be built at the plant and that a joint plant with Audi is preferable to a completely separate Audi plant.

There have also been reports that Volkswagen may build an engine plant to support its new assembly plant. If group sales in the US reach a million units this could be viable.

The assembly plant would produce around 250,000 units a year.