Autoeuropa will produce new car

German automaker Volkswagen said Friday it would build a new model in its Autoeuropa car plant (Setubal, Portugal). After years of dwindling production numbers and constant disagreement with labour unions the decision to build the new model in the factory was finally announced.

"The decision to build a new model at Autoeuropa is based on the competitive cost of the Setubal facility as well as the positive framework that was established in cooperation with the Portuguese government and labour representatives," stated the VW Chairman Wolfgang Bernhard.

Autoeuropa is the biggest foreign investment in Portugal representing a development of more than 2 billion euros. The plant opened in 1995 and employs nearly 2,800 workers that in 2005 produced around 80,000 cars of which included the VW Sharan and Eos models, the Ford Galaxy and the SEAT Alhambra

Tags: Portugal, VW, autoeuropa, model, new, car, factory