The head of Volkswagen Group of America said the company plans to build a clean diesel version of a new mid-size car at its future Chattanooga, Tenn. assembly plant, according to the Chattanooga Times Free Press. "We don't see any conflict between business and the economy and the environment," said VW of America chief Stefan Jacoby at the Governor's Summit on Clean Energy Technology.

The report said that Mr. Jacoby claimed VW is busy "perfecting a clean diesel hybrid vehicle," and it is "at the forefront" of a zero-emission hydrogen car—which may or may not relate to the zero-emission Tiguan HyMotion the company showed off earlier in the year. Mr. Jacoby said in the report that the automaker is prepared to go ahead with the construction of the $1 billion plant, which is expected to employ 2,000 people when fully operational in 2011.