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Volkswagen confirmed today that its new U.S. plant will be constructed in the southern state of Tennessee. The new Chattanooga site in Tennessee beat out rival bids from Alabama and Michigan because of its cost and logistic advantages, and is expected to first start production as early as 2010.

The announcement came from Lower Saxony minister Christian Wulff, who also sits on the carmaker’s supervisory board.

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VW picks Tennessee to build new Camry and Accord rival

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