Volkswagen Tiguan may be built in America

The report cites management sources from Volkswagen, and claims that the German carmaker is considering building the Tiguan in North America to help reduce costs and negate against fluctuating exchange rates for cars sold in the U.S.

Volkswagen currently produces the Tiguan at its Wolfsburg factory in Germany, but the carmaker recently opened its first American plant in Chattanooga, Tennessee. The new US$ 1 billion facility will assemble the Passat for the American market, at a capacity of 150,000 cars annually.

Volkswagen also has another plant in North America, with its Pueblo factory in Mexico currently producing the Jetta and Beetle models. Volkswagen has not given any final confirmation as to whether it will go ahead with building the Tiguan in North America, but if it does, it is most likely to begin with the next generation version starting from 2013.