Volkswagen’s management board is slated to decide July 8 on the site of its new $1 billion plant in the United States, according to auto motor and sport magazine in Germany.

The magazine, citing management sources, said the new factory will be located either in Tennessee or Alabama, while Michigan is seen as having little chance, Thomson Financial reported.

The magazine said the German car maker’s supervisory board will decide on the investment on July 15.

Production at the site is to start in 2010, with an annual capacity of 300,000 units to be reached by 2018.

Chattanooga’s Enterprise South industrial park is considered a contender for the plant, which would eventually employ about 2,000 people.

A site near Huntsville, Ala., in Limestone County also is believed under consideration.

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