Volkswagen reportedly plans to build electric vehicles in North America by 2020.

Hinrich Woebcken, new head of Volkswagen's US unit, tells The Wall Street Journal that a plant in Chattanooga and a facility in Mexico are among those being considered for production of the cars. If VW selects the US location, that might play well with US regulators following the German car maker's diesel emissions-cheating scandal.

Volkswagen building EVs isn't exactly news: Last month, CEO Matthias Müller said the company plans to launch more than 30 "fully electric new vehicles" by 2025. But a possible plant in the US could be music to the ears of US regulators (and politicians).

"We believe that this country, especially in urban mobility, will have a very strong shift from petrol engines into hybridization and electric cars," Woebcken told the Journal. "We are heavily investing in this one—including production in this North American region."

Volkswagen currently sells the plug-in e-Golf, with an estimated 83 miles per charge, driver-assistance features, and starting price of $21,485 (after $7,500 federal tax credit). But, as the Journal pointed out, the car has limited appeal in the US, where pump prices remain relatively low.

In October, Volkswagen said it will focus more heavily on EVs in the future, with electric models like the Phaeton among those scheduled for release. Early this year, VW showed off its all-electric concept van, the BUDD-e (pictured), which boasts 233 miles on a single charge and takes less than an hour to complete.

Volkswagen did not immediately respond to PCMag's request for comment.