Volkswagen hasn't made a decision yet on where it will locate a possible North American engine plant, a company spokesman said Wednesday.
Scott Wilson, of VW's Chattanooga operation, termed as false a story on an automotive Web site that reported the company plans to build the engine plant in the city.
Company officials have said the U.S. along with Mexico are options for the engine plant. Chattanooga officials have pressed their case for the company to put the factory next to VW's assembly plant.
A decision is expected by year's end.