Volkswagen has started looking for the best location for a new plant in North America and has sent scout teams out to look around in the south of the region.

According to Automobilwoche, which quotes company insiders as its source, the plant is likely to be in the south east of the country. It would operate on three shifts. Volkswagen's head of production, Jochem Heizmann, told Automobilwoche that "We still need high volumes, even in the dollar zone." He was speaking on the sidelines of celebrations launching the start of Volkswagen and Skoda assembly in Russia.

"With another plant in North America, Volkswagen could increase sales in North America to more than 800,000 cars a year. This is in line with its 'Strategy 2018' programme. The new plant would be Volkswagen's second in North America after its plant in Puebla, Mexico.

At the same event, Volkswagen Group chief executive, Martin Winterkorn, said he would be seeking to give up his role as head of the Volkswagen brand within three years. One candidate for the top job is Skoda chief, Reinhard Jung.

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