up! and away

Slovakia will be the base for a new range of small cars from Volkswagen, according to an official announcement from the company.

The cars, which come under VW's New Small Family umbrella, are said to stem from the rear-mounted, boxer-engined VW up! three-door concept revealed at the 2007 Frankfurt motor show.

A bigger, four-door space up! version appeared at the Tokyo motor show in the same year. The new cars will wear VW, Skoda and Seat badges and are to roll off the production line in 2011. Volkswagen says they will be built in three and five-door form.

The decision to opt for the Bratislava plant in Slovakia rather than the Skoda plant in the Czech Republic was, according to Automotive News Europe, made largely because of fluctuations in Czech exchange rates. Reduced export costs resulting from Slovakia's recent joining of the Euro trading zone were also a major factor.

The plant in Bratislava already produces four models under one roof, including the Volkswagen Touareg, Audi Q7, Porsche Cayenne and Skoda Octavia sedan.

According to Professor Dr. Martin Winterkorn, Chairman of the Board of Management at Volkswagen, "Our team at Volkswagen in Slovakia is ideally prepared to provide the flexibility required for the production of the New Small Family."

The company happily points to the announcement coming just 20 months after the up! unveiling in Frankfurt.

The decision to manufacture in Slovakia is a major boost for the Bratislava plant, which has been under scrutiny in recent times, largely because of its dependence on increasingly unpopular large SUVs.

According to the Volkswagen announcement, the decision will mean an investment equivalent to $560 million Australian dollars and will save around 1500 jobs at the plant.

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