German automaker Volkswagen is weighing their options as they determine where to build a new factory in North America to build electric vehicles for the U.S.

News agency Reuters reports that Scott Keogh, the newly appointed CEO of Volkswagen Group of America, said a new plant was needed to build a vehicle that has yet to be revealed under the Volkswagen brand, and priced between $30,000-$40,000. That new electric vehicle is expected in 2020.

"We are 100 percent deep in the process of 'We will need an electric car plant in North America,' and we're holding those conversations now," Keogh explained at the Los Angeles auto show.

Volkswagen's current U.S. facility in Chattanooga could be one option, since there is enough room at the facility, but it will not necessarily be chosen, Keogh said. The current range of VW Passat and Atlas SUVs are built here.

VW's production timeline for 2020 means the new electric car will initially be sourced outside of the United States, Keogh said, but then will be produced at the newly chosen site.