(Times Free Press) -- Volkswagen's luxury automaker Audi may be leaning toward Mexico for a North American assembly plant, according to WardsAuto.

In a report, it cited Mexico's lower labor costs and that a facility there would allow Audi to export vehicles to South America, and even to Europe if necessary, without paying excessive import and export tariffs.

A top Audi executive at the North American International Auto Show last week cited Chattanooga as an "attractive potential location" for its first North American production plant.

But, Audi of America President Johan de Nysschen said the VW brand already has aggressive plans for its Chattanooga site. He added that there was no final decision.

Read more on the story from our news partners at the Chattanooga Times Free Press.