Volkswagen is nearing a decision to pick its Chattanooga plant over a site in Mexico to build a new seven-seater crossover vehicle for the North American market, Reuters reported that a German newspaper said today.
The state of Tennessee is offering tax breaks, staff training, free land and infrastructure upgrades worth about $300 million in total, giving it a clear edge over Puebla, Mexico, daily Frankfurter Allgemeine Zeitung cited company sources as saying.
VW declined to comment.
Volkswagen unveiled plans in January to make a sport utility vehicle tailored for the North American market to be launched in 2016.
The company said at the time the move was a sign of renewed commitment to the market after a sales decline by its core VW brand, which continues to achieve low U.S. quality scores.