Volkswagen Targets Alabama for New US Plant

After considering several states for a new U.S. manufacturing facility, Volkswagen seems ready to break ground for the plant in Huntsville, Alabama.

VW reportedly favors the location due to an incentive package offered by the state’s government.; Although details aren’t currently available, the incentives offered by Alabama supposedly eclipse those offered by Tennessee or Michigan, states also considered for the factory.

VW still considers locating the factory in Chattanooga, Tennessee, as a second option.; Automotive News claims the leading factor in preferring Huntsville was that Alabama could meet the automaker’s construction timeline; Tennessee could not.

Ultimately, either location could be home to a plant capable of producing 300,000 cars each year.; VW hopes to have the factory running by 2010 and reaching full capacity by 2018.

At this point, no location is set in stone, but we expect a firm announcement following a meeting of VW’s board of directors on July 15.

Source: Automotive News