Volkswagen said on Monday it will need to increase production if it is to meet strong demand for its new Golf V hatchback, which goes on sale in Germany this week, according to Reuters.

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“Demand for the new Golf is so high that we will have to do something,” a VW spokesman told the news agency, though he declined to comment further ahead of negotiations with the workers’ council.

Company sources told Reuters VW would introduce extra shifts to meet high demand for the new Golf, traditionally VW’s best-selling model and the second most popular car of all time.

Reuters noted that, under current plans, VW will build 135,000 Golfs this year and expects to build 600,000 next year – it said at the start of the month it had agreed with workers to start Saturday shifts to meet strong demand.

Reuters said VW is banking on the Golf V to significantly boost earnings in 2004 after a year of falling profits.

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