Earlier this year, Volkswagen announced it would open up a U.S. auto manufacturing plant and make a decision as to its location by mid-year. That time is fast-approaching, and the world’s fourth-largest and Europe’s biggest automaker said on Wednesday it has narrowed down its search to three states: Alabama, Michigan and Tennessee.
The automaker is still far from making a decision however, including whether to build a plant on U.S. soil at all, according to an Automotive News report.
“We reviewed many excellent sites and the process to narrow down the locations was not an easy one,” said Stefan Jacoby, Volkswagen group of America’s president and chief executive. “We look forward to continuing to work with the states of Alabama, Michigan, and Tennessee as the evaluation moves forward.”
The recent slump of the U.S. dollar compared to a strong euro is a strong motivator for the automaker to set up shop in North America, which would initially see a production of between 100,000 and 150,000 vehicles. Eventually, the plant would produce 250,000 annually, and the first vehicle to roll out of the plant would be a Passat replacement built specifically for the U.S. market.
VW is evaluating cost, logistics, site readiness and operational considerations in its reviews, according to Jacoby. All three states have significant automaker presence, with Michigan home to the three big domestic manufacturers, Alabama hosting plants for Daimler, Honda and Hyundai, while Tennessee is home for Nissan headquarters and plant, along with a GM factory.
A U.S. factory would go a long way in helping VW meet its goal of selling 1 million vehicles in the U.S. by 2018 and take away some of the excuses for not bringing models like the Scirocco Stateside.
