VW Beduin: To be build in Portugal?

GermanCarFans is in line with many other sources we have found that Volkswagen's compact SUV, the so-called VW Beduin, will be produced in Portugal.

At its meeting today, the Brand Product Strategy Committee of Volkswagen AG recommended that the compact SUV should be built at the Palmela plant in Portugal from 2007.

This recommendation was issued in view of the competitive situation and the scheduling framework for production start-up of the compact SUV. From the present perspective, production in Portugal brings cost benefits of over 1000 Euro per vehicle compared with production in Wolfsburg, the alternative facility. Given the tough competitive situation in this vehicle segment, extra costs on this scale are not acceptable. Under present conditions, production of the compact SUV at the Wolfsburg site would therefore not be economic.

But don't forget that this was just a "recommendation" and that the VW headquarters is currently in heavy discussions with the unions about the possible production in VW's main factory in Wolfsburg. Decisions are not made so far from what we have read.

GermanCarBlog, VW Beduin

Source: GermanCarFans

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