The 2013 Volkswagen CC

Volkswagen of America's chief executive says the company is considering building the next generation CC sedan at its Chattanooga production plant, according to Motor Trend.

The CC is mechanically similar to the Chattanooga-made Passat.

Chattanooga already is considered the front-runner to make a new sport utility sedan designed for the U.S. that the company wants in showrooms in 2016.

Michael Horn said that, while a decision could be a while off, the automaker could outfit the Chattanooga plant or assemble the CC at its operations in Mexico.

The expense of importing the European-made CC along with a high Euro-dollar exchange rate were among reasons cited along with production costs.