Like any car manufacturer with maintaining profitability in their mind, Volkswagen is moving production for certain models out of their home country of Germany. The Volkswagen Up! will be built in 2011 in its Slovakia plant, and in the same year the compact Audi Q3 SUV will begin assembly at SEAT’s plant in Spain. The Slovakia plant currently also builds the Audi Q7, the Volkswagen Touareg and the Porsche Cayenne, so the Up! (Lupo?) should help fill up the capacity as the demand for these SUVs drop in this bad economy.
Unlike the UAW, the worker unions accept that during these troubled times where everyone is taking a hit, they also have to reduce their standards of living – at least they get to keep a job! Because the 13,000 workers at the plant agreed to accept wage scale adjustments and possible pay cuts, the SEAT plant won the Q3 job, otherwise it could have to a number of other plants that the Volkswagen Group has such as Skoda’s Czech Republic plant. In turn, Audi will invest 300 million Euros in the plant to increase annual capacity up to 80,000 units.