In accordance with its expansion plans in the region, Volkswagen said on Tuesday that it is looking to establish a new motor plant in North America where the company plans to invest up to $US1 billion which should commence by 2013.

Company representative Jochem Heizmann made the announcement during Volkswagen's another $US1 billion extension plant inaugural in Puebla, Mexico, which he said would be the springboard for the company's goal of increased annual production in region.

Mr Heizmann said that the refurbished Mexico facility would be able to upgrade its current production output of 100,000 vehicles to an estimated 430,000 units by 2010.

At the same time, he gave assurance that the planned company expansion would consider Mexico as a preferred choice for the new factory though he clarified that Volkswagen has yet to determine its definite location.

He said that Europe's biggest car maker is planning to produce a 'Bicentenary Car' on its Puebla plant, in celebration of Mexico's 200 years of independence from Spain this year.

Mr Heizmann added that the Puebla facility, which currently employs about 9500 workers and rolls out an average of 1600 vehicles each day, would also see the assembly of many more Volkswagen models that the company plans to introduce in North America.

Volkswagen chief executive Martin Winterkorn revealed that the company is focusing considerable resources to its North American market, where the construction of a new plant in Chattanooga, Tennessee is underway.

He reported that during the first half of 2010, Volkswagen sold an estimated 3.5 million vehicles in the region, which is an improvement of 15 percent from the same period last year.