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November 29, 2005

GERMANY: VW Portugal plant may make niche cars

Volkswagen has targeted its Autoeuropa plant in Setubal, Portugal, as the leading candidate to produce VW’s next range of niche vehicles, including a sporty Golf-based coupe due in 2008, according to Automotive News Europe.

Volkswagen has targeted its Autoeuropa plant in Setubal, Portugal, as the leading candidate to produce VW’s next range of niche vehicles, including a sporty Golf-based coupe due in 2008, according to Automotive News Europe.

Sources say VW officials met in Portugal on 24 November to discuss the project. If chosen, the Autoeuropa plant would add about 50,000 units a year of niche vehicles.

Autoeuropa currently builds the Ford Galaxy, VW Sharan and Seat Alhambra. The Galaxy’s production will end next month, while the future of the Sharan and Alhambra is unclear.

VW already has said it will make 45,000 to 50,000 units a year of the Eos coupe convertible at Autoeuropa. Quality issues have delayed the car’s launch at least two months, VW said.

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