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The Spaminator
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VW may produce Tiguan in North America, report says
May 28, 2011
Automotive News

FRANKFURT (Reuters) - Volkswagen wants to start producing the Tiguan compact crossover in North America, helping to trim costs, a German magazine reported, citing management sources.

Volkswagen already assembles Jetta and Passat cars in North America, and a proposal to produce the Tiguan there too may soon be decided by the board, WirtschaftsWoche magazine reported in a prerelease of 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 say.

VW could also price the Tiguan more competitively by building it in North America, a strategy it has adopted with the newest Jetta and Passat models.

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