Volkswagen has scrapped plans to build its new Up minicar in the Czech Republic, and is now toying with building the vehicle in either Spain or Portugal.
The decision comes based on based on the desire to build it in a country “where the currency risk to the euro is capable in the long-term,” according to spokesman Christoph Adomat. VW had planned to build the Up in the Czech Republic due to a favorable currency exchange, but that’s no longer the case.
First shown as a concept vehicle at the 2007 Frankfurt motor show, the Up is expected to launch by the end of 2010, and should compete with the likes of the Toyota iQ and smart fortwo. VW hopes to sell half a million of the cars annually in both Europe and India.
VW sources indicate a final decision about where the Up will be built will likely be made on Friday, November 21, when the supervisory board of Volkswagen is scheduled to meet. VW says that the decision to change where the Up’s production venue will not change the launch date.
Source: Automotive News