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Volkswagen Still Undecided On U.S. Plant

Meeting Tuesday of Volkswagen AG's management board yielded no decision on where to build a possible U.S. plant, a facility for which three states are in contention.

FRANKFURT, Germany (AP) -- A meeting Tuesday of Volkswagen AG's management board yielded no decision on where to build a possible U.S. plant, a facility for which three states are in contention.

The company said its management board met for a few hours but did not choose between Alabama, Tennessee or Michigan.

The company's supervisory board, the equivalent of a U.S. board of directors, is scheduled to meet on July 15, with a decision likely to be announced afterward.

However, the company provided no firm date and declined to detail the progress of talks with the three states.

Michigan Gov. Jennifer Granholm told reporters Tuesday that she realizes it will be tough to draw a Volkswagen plant to Michigan.

"But we've put everything we've got on the table," she said, noting that she has met personally with company leaders and that Michigan has the kind of skilled workers Volkswagen needs. "We have been in there slugging."

The proposed plant is part of the Wolfsburg-based company's strategy to increase its presence in the U.S., where it holds only 2 percent of the market.

The automaker has said the surging euro -- which makes good imported from Germany more expensive in the United States -- has pushed along plans for a new production facility.

Volkswagen, which closed its last U.S. production facility near Pittsburgh in 1988, has said actual production at the facility is not expected to start until at least 2010.

Shares of Volkswagen closed down less than 1 percent to 172.31 euros ($269.58) in Frankfurt.

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