Volkswagen may build US factory
Volkswagen chief executive Martin Winterkom says the company is considering building an assembly plant in the United States. In an interview, Winterkom told the German magazine Focus that “[i]f the dollar stays at its current level, one has to consider a factory in North America very seriously.”
Of course, “North America” technically includes places other than the United States. Volkswagen already has a plant in Mexico and both Ford and General Motors have factories in Canada. Nonetheless, if the primary motivation for building the new plant is to eliminate the unfavorable exchange rate of the Euro against the dollar, locating within the United States borders seems most advantageous.
In an unrelated development, Nissan and Mitsubishi have announced that they will be increasing exports from their United States factories. Both companies intend to ship the production to developing markets, especially those in China, the Middle East and Russia. (Nissan plans to build a plant in Russia, too.) To meet demand in these markets, Mitsubishi will hike export production at its Illinois plant by 60%. Nissan will increase export production at its Mississippi plant approximately 25%
Source: ABC Money