(May 30, 2011) Volkswagen last week celebrated the opening of a North American plant in Tennessee and now word has it that the German company wants to add the compact Tiguan crossover vehicle to the mix.

If theTiguan is built in North America it would help  to trim costs, a German magazine reported, citing management sources.

Volkswagen already assembles Jetta and Passat cars in North America, and a proposal to produce the Tiguan there too may soon be decided by the board, WirtschaftsWoche magazine reported in a prerelease of its Monday issue.

The Tiguan is currently only produced in Volkswagen's Wolfsburg plant in North Germany.

By shifting production to the United States and using local parts suppliers, Volkswagen can guard against exchange rate fluctuations that can eat away at profits, analysts say.

VW could also price the Tiguan more competitively by building it in North America, a strategy it has adopted with the newest Jetta and Passat models.

Making cars in the United States also allows the company to keep closer track of changing tastes in the world's No. 2 auto market, where consumer trends often originate.