Volkswagen wants to start assembing its Tiguan compact sport utility vehicle in North America to help trim costs, a German magazine reported, citing management sources.
Volkswagen already makes the Jetta in Mexico and Passat in Chattanooga, and a proposal to produce the Tiguan in North America too may soon be decided on by the board, WirtschaftsWoche magazine reported in a prerelease from its Monday issue, according to Reuters.
The Tiguan is currently only produced in Volkswagen's Wolfsburg plant in North Germany.
By shifting production to the United States and using local parts suppliers, Volkswagen can guard against exchange rate fluctuations that can eat away at profits, analysts have said.
WirtschaftsWoche said that it has not yet been established if the North American Tiguan would be produced at the Chattanooga facility or at VW’s plant in Pueblo, Mexico.