Germany - Volkswagen has revealed plans to expand production capacity by building a new plant in Eastern Europe. It will be a multi-brand plant, making various vehicles under the different marques of the VW Group, and will play a key role in the company's competitiveness in the region.

"We have redefined the strategic guideposts for future plant assignment," commented Oliver Blume, board of management member for Group production. "We are making our plants fit for the future. Among other things, this includes bundling cross-brand product families to maximise synergies and cost benefits. That is how we will be realising the full potential of the Volkswagen Group."

The new facility will initially house production of the Skoda Karoq and SEAT Ateca, which are currently made at Skoda's plant in Kvasiny, Czech Republic. Kvasiny will instead become home to the Volkswagen Passat, Skoda Superb and Kodiaq from 2023.

As well as constructing a new plant, VW has said it will ready its existing facilities in Emden and Hanover for the production of electric vehicles. Specifically, it will start making models from the ID. family starting in 2022.

"German plants are particularly well suited to making the transformation to the production of electric vehicles, given the high manufacturing expertise and qualification level of our employees," Blume added. "We are aligning the three plants in Zwickau, Emden and Hanover to our electrification strategy and thereby laying the groundwork for expanding our electric fleet and thus meeting the CO2 targets."

Like many other car makers, VW has recently been flying the flag for electrification. It has also been witnessing growing demand for its SUVs across the world: it recorded a production milestone in the US, has opened a new SUV assembly facility in China, and started making the SEAT Taracco at its plant in Wolfsburg.