It's no secret that Volkswagen has ambitious plans for the U.S. market over the next decade. The German automaker has its sights set on a combined one million sales per year (made up of 800,000 VWs and 200,000 Audi vehicles, give or take) by the year 2018. That's three times as many vehicles as the company sold last year.

Of course, selling more cars in the U.S. means building more cars in North America. Hence VW's billion dollar investment in a plant in Chattanooga, Tennessee, where the automaker will build the upcoming "New Midsize Sedan" specifically for the American market.

A report from Autoweek suggests that VW has plans in the works to build another vehicle in Tennessee. While we had previously heard that the second model may be an Audi, it now seems as if it may be a VW-badged small car of CUV. The report also indicates that an engine plant may go up alongside the new facility to build engines for North America.

In any case, the value of the U.S. dollar as compared to the euro is likely to have a large impact on whatever decision is finally made.

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