Fiat is scouting for a plant to build Alfa Romeo cars in the United States and plans to choose a location by the end of May.

Two possibilities are being considered, according to sources familiar with the project:

1. Buy a shuttered factory formerly owned by one of the Detroit 3.

2. Expand an existing Case New Holland agricultural machinery or construction equipment plant. Fiat owns Case New Holland, which operates 11 plants in North America.

The plant would begin producing vehicles in 2011 or 2012, according to sources. Capacity would be about 150,000 units annually. Vehicles built there would be sold in North America and exported to Europe.

The Italian company is talking with various states about incentive and tax abatement packages, the sources say.

Fiat Group CEO Sergio Marchionne said in January that Alfa would export vehicles to the United States beginning in late 2009. Alfa will start with the 8C Competizione coupe, which will be sold through selected Maserati dealers. Other models will follow through Alfa's own channel.

Alfa Romeo CEO Luca De Meo said this month that a decision on the distribution network and the vehicles to be sold would be made within two or three months.