Volkswagen's premium brand Audi will invest about 300 million euros ($387.2 million) in the Seat plant in Martorell, Spain, where it will begin building the Q3 compact sport utility vehicle in 2011.
Audi said on Wednesday that capacity would allow for up to 80,000 Q3s to be built per year.
"We are counting on this Spanish site's efficiency, the excellent quality of the Production department, and its highly trained staff. We will use the Group's synergies to sharpen our competitive edge and help protect around 1,200 jobs," Audi Chief Executive Rupert Stadler said in a statement.
