Volkswagen's Slovak plant, home of the Up and various SUVs, will hit planned capacity of 400,000 units in 2012.

The Up, due on line this autumn, will boost output from the current 280,000 cars.

"We plan to produce 400,000 new cars in Bratislava next year," Volkswagen Slovakia chief Andreas Tostmann told Reuters after meeting Slovak president Ivan Gasparovic. The automaker has earmarked another EUR1bn for facilities in the country by 2015.

The VW unit made 144,510 vehicles last year, up from 106,000 cars in 2009, with revenues rising 37.4% year on year to EUR4.04bn.

The company's production almost doubled in the first half of this year to 94,600 units with revenue jumping by 33.3% to EUR2.4bn (US$3.5bn)., driven by solid foreign demand for its sport utility vehicles.

Volkswagen Slovakia currently produces the VW Touareg, Audi Q7 and painted and trimmed bodies for the Porsche Cayenne for final finishing in Germany.