German newspaper Frankfurter Allgemeine Zeitung reported Volkswagen will build its Crafter van in Poland after ending their existing partnership with Daimler.

Currently, Daimler builds the Crafter alongside the Mercedes-Benz Sprinter at its factories in Dusseldorf and Ludwigsfelde, Germany. VW will not renew the contract with Daimler when it runs out mid-2016.

The transfer of Crafter production to VW’s plant in Poznan, Poland, would require approval from VW’s supervisory board, a high hurdle since it is dominated by representatives of the company’s German work force, which tends to resist attempts by management to move production abroad. VW’s factory in Hanover, Germany, had been considered for Crafter production but costs are lower in Poland.

The Frankfurter Allgemeine Zeitung said the supervisory board had yet to take a formal decision but was likely to give the green light before the company’s annual results press conference on March 13. VW builds the Caddy and T5 smaller vans in Poznan. The automaker is considering investing 500 million euros ($677 million) to add annual capacity for 70,000 Crafters, according to the Frankfurter Allgemeine Zeitung.

Via Automotive News Europe


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