A trade publication says Alabama appears to be the frontrunner to land a Volkswagen AG assembly plant.

Metal Bulletin, citing economic development sources, said Chattanooga remains in the running for the plant, though it could be under consideration for a Volkswagen engine plant.

A third contender in the race, Michigan, now appears out of the running, according to the publication. Volkswagen moved its U.S. headquarters out of Michigan to Herndon, Va., last year.

A decision by the German automaker could be made at a management board meeting July 8, with final approval slated for July 15 at a supervisory board meeting, a separate publication said this week.

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