Volkswagen wants to produce the Tiguan SUV model in North America in an effort to slash production costs on the compact crossover. VW is already producing the Jetta and Passat in North America and is considering moving production of the Tiguan, according to a report by WirtschaftsWocke magazine.
Presently, the Tiguan model is only produced at the Wolfsburg plant in Germany.
The shift in production from Germany to North America will allow VW to guard against exchange rate fluctuations that can eat away at profits, analysts said.
Producing Volkswagens in the U.S will also allow the automaker to keep closer track of changing tastes in the world’s second largest auto market, where consumer trends often originate.
It is unclear whether the Tiguan will be produced at the Chattanooga, Tennessee plant (currently VWs only plan in North America), however, production is scheduled to rise to 150,000 vehicles annually by 2012.