The debut of the CrossBlue three-row SUV concept at the 2013 Detroit Auto Show in January signaled the company was serious about fielding a contender in the hotly-contested and high-volume three-row SUV segment, with a price point between the premium Touareg and the entry-level Tiguan.

So we know it's likely coming. But where to build it is still reportedly up in the air, according to The Detroit Bureau. Volkswagen's Chattanooga, Tennessee plant is a leading contender, with ample potential capacity to build the SUV along with the North American-spec Passat sedan. However, Mexico is still in the running to produce the SUV, with the Puebla plant currently supplying the Jetta and Beetle to the U.S. market.

Another possible factor in choosing a production site could be the ongoing discussions between VW management and the United Auto Workers about organizing the Chattanooga plant, which could potentially raise labor costs at the site.

Volkswagen has made no secret of its global ambitions, and specifically at expanding its market share in the U.S., which despite recently being eclipsed by China in overall unit sales, remains a significant market for global automakers.

Source: The Detroit Bureau