Volkswagen AG said it will invest 500 mln eur over the next five years at its AutoEuropa factory in Portugal, confirming an earlier report in Jornal de Negocios.
In a statement, the company added that the investment is principally for new products, modernisation of production equipment and to build infrastructures for suppliers.
VW production head Reinhard Jung said the company decided to invest in the factory due to its 'good yield' in terms of costs and quality.
VW said the investment was announced to economy minister Manual Pinho on Friday, when the group also asked the Portuguese government to install legislation in order to increase work flexibility.
