Portugal to produce new Volkswagen model in 2008

Volkswagen announced the Palmela, Portugal factory - Autoeuropa - has been chosen to produce a new car model beginning the first quarter of 2008, but did not specify the model to be produced.

"The decision to produce a new model in Autoeuropa is the result of the competitive cost of production of the factory, well as the favorable conditions of the cooperation established by the Portuguese government and the workers," announced Wolfgang Bernhard.

José Sócrates, prime minister of Portugal, said he was "satisfied with the decision of Volkswagen to produce a new model in the factory of Palmela," and considered that the decision, "reflected the confidence [of the investors] in the Portuguese economy."

Volkswagen will reveal the new model to be produced next week. By 2008, the factory at Palmela will only be producing the multi-purpose vehicle Sharan and the Eos models.

With the end of the production of the multi-purpose vehicle, the factory needs to guarantee new product lines, since the new Eos is not sufficient to maintain the current 2,790 workers.

The Volkswagen Autoeuropa produced a total of 79,896 vehicles last year, of the models Volkswagen Sharan, SEAT Alhambra, Ford Galaxy and Volkswagen Eos, against the 95,660 vehicles produced in 2004.