Volkswagen has decided to build an additional vehicle at its Portugese plant in Setubal from the first half of 2008, the carmaker reportedly said on Friday.
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“The decision to make a new model at Autoeuropa in Portugal is based on the plant’s competitive cost level and the positive conditions that were created along with the Portugese government and labour representatives,” VW brand chief Wolfgang Bernhard said in a statement cited by Reuters – he gave no more details.
In Portugal, the government welcomed the news which could guarantee jobs at the factory, an important source of income and exports for western Europe’s poorest country, the report added.
“This is good news for our country, for our economy and for our exports but, mainly, for Autoeuropa because it opens new opportunities and allows for stability,” prime minister Jose Socrates told the news agency.
Autoeuropa has previously made a jointly-developed minivan line for VW, Ford and VW Spanish unit Seat.
Economy minister Manuel Pinho told Reuters the government was now negotiating with VW over a new multi-purpose vehicle which will be built at the plant in Portugal.
