Volkswagen Group says it will start talks for a new multibrand car assembly plant in Europe.
The move was announced by VW on Monday after the automaker's supervisory and management boards gave their approval.
VW will begin "concrete negotiations" for the plant in Europe with the remaining potential locations, VW said in a statement.
VW first said in November that it plans to add an additional plant in eastern Europe to expand its production capacity after 2022.
The move is being driven by a capacity squeeze at VW Group's Skoda brand. The plant is expected to make the Skoda Karoq and Seat Ateca compact SUVs.
Bulgaria, Serbia and Turkey are all in talks to win the factory, press reports have said.