German automaker Volkswagen AG has narrowed down its list of states competing for a potential U.S. production facility. Alabama, Michigan, and Tennessee are the final states in the running for the new plant, which the company is strongly considering building within the next two years. Stefan Jacoby, president and chief executive of Volkswagen Group of America, says the company will evaluate cost, logistics, site readiness, and operational considerations as it looks at the three states. If the company does go forward with the facility, it plans to produce between 100,000 and 150,000 vehicles annually, with the first vehicle likely a replacement for the Passat. A final decision is expected sometime this summer.