REDFORD TOWNSHIP, Mich. (AP/WDEF) – Ford and Volkswagen are in talks about building VW vehicles in some of Ford’s U.S. factories.
VW CEO Herbert Diess told reporters after a meeting at the White House that the automaker is holding discussions with Ford.
Ford CEO Jim Hackett confirmed the talks Tuesday and Executive Chairman Bill Ford says the negotiations are going well.
VW also has said it’s considering a new U.S. factory to build electric vehicles that the company plans for the future.
The German company now builds SUVs and a midsize car at a factory in Chattanooga, Tennessee, but imports the rest of its vehicles.
Ford and VW also are in talks about an alliance to build commercial vehicles.
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The big question in Chattanooga is where will that electric plant be.
Volkswagen officials have said it could be here.
But it’s not a done deal.
On Tuesday, Diess said “We are in quite advanced negotiations in Tennessee, but there might be other options as well.”
Volkswagen began making Passat passenger cars in Chattanooga, but has added SUV production here.
The company plans to move away from those petroleum vehicles to electric versions of the Passat and Atlas in the coming years, but have not committed where they will be built yet.
Last week at the Los Angeles Auto Show, VW U.S. CEO Scott Keogh said they will intoduce an electric car here by 2020, in the $30,000 to $40,000 price range.
Initially, the electric vehicles will be imported.