VW's Slovakia Operation

Volkswagen has opened a DM50m plant in Martin, central Slovakia, to make parts for axles, steering systems and transmissions Output at the factory is expected to top 2.2m components this year, and significant expansion is envisioned with the 20,000 sq. metre site. The workforce, 120 now, is to reach 451 before 2001.

The Martin operation represents only part of DM305m that Volkswagen Slovakia plans to invest this year, boosting its accumulated outlay in Slovakia over DM1.1bn since 1991. Much of the capital will upgrade the car plant to launch production in the fourth quarter of 2001 of a new sports-utility vehicle, developed with Porsche. Output of the model could exceed 100,000 units a year, pushing annual capacity after 2002 above 200,000 for all cars, now including VW's Bora, Golf and Polo.

The new vehicle should stimulate foreign investment in auto parts production in Slovakia. Several suppliers already have shown interest: Delphi of the US, Küster of Germany and Plastic Omnium and Sommer Allibert of France.

Sent in by Pete Frost