FRANKFURT May 28 Volkswagen (VOWG_p.DE) wants
to start producing its Tiguan model in North America, helping to
trim costs, a German magazine reported, citing management
Volkswagen already produces Jetta and Passat cars in North
America, and a proposal to produce the Tiguan there too may soon
be decided on by the board, WirtschaftsWoche magazine reported
in a prerelease from its Monday issue.
The Tiguan is currently only produced in Volkswagen's
Wolfsburg plant in North Germany.
By shifting production to the United States and using local
parts suppliers, Volkswagen can guard against exchange rate
fluctuations that can eat away at profits, analysts have said.
Making cars in the United States also allows the company to
keep closer track of changing tastes in the world's No. 2 auto
market, where consumer trends often originate.
For a graphic on Volkswagen's U.S. sales and market share
over the years, click on r.reuters.com/xuz69r.
Volkswagen last week celebrated the opening of a $1 billion
U.S assembly plant in Chattanooga, Tennessee, with the help of
which it hopes to unseat Toyota Motor Co (7203.T) as the world's
Production at the Tennessee plant is scheduled to rise to
150,000 vehicles annually by 2012.
It is not yet clear whether the Tiguan would be produced in
the new plant, the magazine said. Volkswagen is already building
its 2012 Passat car there.
Volkswagen declined to comment on the report.
(Reporting by Josie Cox and Jan Schwartz.; Editing by John