Volkswagen planning to build new U.S plant

Volkswagen of America chief executive Stefan Jacoby unofficially confirmed their plans of building a new assembly plant in the United States.

Speaking in Detroit at the Automotive News World Congress, Jacoby said local production was a main part of Volkswagen’s growth plan as far as United States was concerned and a conclusion about building a plant would come in the near future.

"We will make an announcement within the month ... months," Jacoby said, confirming the German giant’s plan of building a plant very soon. During his speech, Jacoby also referred to reports that he had been touring the Carolina countryside as "silly rumors." This comes after Automotive News reported some time back that a farmer in North Carolina had been conferred by German officials for buying his land.

Jacoby said the decision on a plant would be all about building the right vehicle at the right price in the right volumes in the right supplier corridor.

U.S. sales for the Volkswagen brand ended at 230,571 units in 2007, down 1.9% from the 2006 statistic. Volkswagen has set an objective of selling 800,000 VW brand vehicles in the United States alone by the year 2018 and has an array of cars ready to be launched this year. This includes a new SUV, Volkswagen Tiguan, a new minivan Volkswagen Routan and the four-door Passat CC.