VW narrows potential new plant to 3 states

WASHINGTON (AP) -- Volkswagen AG said Wednesday it has narrowed its list of states competing for a potential U.S. production facility to Alabama, Michigan and Tennessee.

The German automaker said it was still evaluating whether to build a new plant in the United States and would make a final decision this summer.

If Volkswagen decides to open a plant, the company is expected to start building cars within the next two years and initially produce between 100,000 and 150,000 vehicles annually.

Toyota considered a 1,600-acre site in Chattanooga last year for a $1.3 billion assembly plant, but chose a site near Tupelo, Miss., instead. The Enterprise South site was also a contender a year earlier for a $1.2 billion Kia Motors Corp. plant.

Chattanooga Area Chamber of Commerce spokesman J.Ed. Marston declined to comment when asked about any contact with Volkswagen. State officials also were mum.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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