Volkswagen has concluded several contracts with U.S. suppliers as part of plans to increase the company’s exposure in the United States, the German newspaper Handelsblatt said, citing industry sources.
It said the goal is to offset the negative effect of a weak dollar against a strong euro. It said VW chief Martin Winterkorn wants at least 70 percent of a car to be produced locally compared with the current 50 percent local content in VW’s Mexican plant.
The company said it is considering Tennessee, Michigan and Alabama as locations for a new North American auto assembly plant. Chattanooga’s Enterprise South industrial park is reportedly a candidate.