Volkswagen AG, Europe's largest carmaker, said it won't bring its resurrected Scirocco sports hatchback to market in the US because of the dollar's decline versus the euro.
``The exchange rate is the only reason for not selling it in the U.S.,'' Detlef Wittig, the German company's sales and marketing chief, said last night in an interview at the Geneva International Motor Show. ``This car would fit the U.S. market but at the current exchange rate we wouldn't make any money.''
The dollar's fall to an all-time low against the euro this week has made Volkswagen's need for a U.S. plant all the more critical, Wittig said. The Wolfsburg, Germany-based carmaker has ``in these last days started the selection process by looking at various locations all over the U.S.,'' he said.
Volkswagen has been losing money in North America since 2003. Stefan Jacoby took over as U.S. chief on Sept. 1 and a month later announced plans to move the regional headquarters to Virginia from Michigan, eliminating 400 of 1,400 jobs. Volkswagen has ruled out Canada as a location for a North American factory, Wittig said, adding that a final decision on a plant should come before the end of June.
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