Volkswagen moves Spanish op to Slovakia

THE CARMAKER Volkswagen plans to move part of its Spanish production of the Polo model from Navarre to its Bratislava factory, according to the Financial Times, in order to consolidate manufacture of the Polo, whose sales are falling.

A Madrid business professor quoted by the paper said the move was caused by the fact that Slovak wages are one-fifth what VW pays its Navarre workers, and that the firm, faced with falling demand for the Polo, preferred to close a Spanish rather than a German plant after failing to come to a deal with workers on overtime pay.

The move of Polo production follows an announcement two weeks ago by the Seat automaker that it would be moving production of its Ibiza model from Barcelona to Bratislava.

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