Continental will open its first turbocharger plant in 2011. The factory will initially make 100,000 turbochargers a year for four-cylinder, 2.0-liter gasoline direct-injection engines, Wendelin Klügl, Continental’s head of powertrain systems and technology, told Automotive News Europe (ANE).

Klügl said Continental will choose a site for the plant this summer.

Industry sources say Volkswagen group is Continental’s customer for the turbochargers.

Demand for turbochargers is growing because they offer a proven and relatively inexpensive way to reduce fuel consumption.