According to Dow Jones, Volkswagen AG is investing over 500 million euros in its main Audi facility in Ingolstadt to prepare for the redesigned A3 model.

The German car maker said it would use the funds to build new body and press shops, among other changes. Initial daily production capacity will be around 630 cars, Dow Jones said, citing an Audi press release.

Audi spokesman Joachim Cordshagen told Dow Jones that Audi expects to start selling the new A3 car in the first half of 2003 but can't yet give a firm date or sales forecast.

However, he told Dow Jones that Audi "would have a higher volume of sales with the new A3."