VW considering North American plant

LOS ANGELES – Volkswagen of America Inc. will decide during the first half of 2008 whether it will build a new assembly plant in North America, CEO Stefan Jacoby said.

A new plant is under discussion as Volkswagen plans a major sales assault in the U.S. market. But the project is not finalized, nor has it been approved by Volkswagen’s board, Jacoby told Automotive News in an interview today at the Los Angeles Auto Show.

Volkswagen will continue to evaluate possible plant locations as it moves closer to its decision time, Jacoby said. But the company says it could pick a U.S. site.

Volkswagen of America wants to sell 1 million VW- and Audi-brand vehicles by 2018. The goal for VW specifically is 800,000 units, up from 235,140 in 2006.

Jacoby acknowledged that the weakening value of the U.S. dollar adds urgency to the decision on whether to build the new plant.

“It is getting more painful,” he said.