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VW Expands Business in Spain

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VW Expands Business in Spain

VW plans to make an investment of 785 million euro in the following five years in a Spanish plant.

The plant is located outside Pamplona in the region of Navarra, and has 4,600 workers. The facility, which builds the Polo subcompact, has a production capacity of 300,000 vehicles annually, making it the automaker’s largest producer. Part of the money will be invested to prepare installations for the next generation Polo, according VW’s statement.

“A large part of the 785 million euro investment will go to prepare installations for manufacturing the next generations of Polo and its substitute in the future,” Volkswagen said in a statement.

VW is the fourth automaker to expand its business in Spain, after Renault announced in November it is hiring 1,300 people at its plants in the country and after Ford said it is shutting down a plant in Belgium and transfer production to Spain. Nissan, which was aiming to expand production of a new model in this country, said it will postpone its plans as it failed to reach an agreement with labor unions regarding the new contract terms. The Spanish government encourages automakers to invest in the country and make it more competitive for business.

by Ana Cezara Savin (my Google+) - Thursday, January 24th, 2013 - filed under News, Volkswagen. Image credit: .
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