Volkswagen To Build Powertrains in North America, Report Says
January 28, 2008

Volkswagen has said it will build an assembly plant in the United States, a decision that could come this year. Now the German automaker appears to be looking at powertrain production in North America as well.

The German magazine Automobilwoche reported over the weekend Volkswagen plans production of engines and transmission in North America to reduce its exposure to the U.S. dollar exchange rate.

“We will not be competitive unless we produce these components locally,” the magazine quoted Stefan Jacoby, president and CEO of Volkswagen of America Inc., as saying.

A production plant could be located in the U.S., Canada or Mexico, Jacoby said.

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