Exchange rates against the American dollar have been rising sharply for the last five years and are now starting to seriously affect automotive imports. Volkswagen has usually sold its vehicles in the US for less than they were available even in European countries, but the recent rise of the Euro has forced them to consider building a factory to offset the difference.

VW CEO Martin Winterkorn is already planning to build a second HQ in Detroit, but told the German magazine Focus "if the dollar exchange rate stays at its present level, we will have to begin thinking about a factory in North America."

Car companies hedge currencies to reduce their financial burdens but the predicted exchange rate is not expected to improve. VW has also announced that it plans to sell 6m cars next year, up from the 5.7m it will sell this year. To achieve this growth the company will be primarily targeting the US, Chinese, and Indian markets.