VW to shift Golf output from SAfrica to Wolfsburg - sources

FRANKFURT (Thomson Financial) - Volkswagen AG plans to increase the manufacturing capacity of Golf cars at its Wolfsburg base plant by moving production of the right-hand drive version there from the Uitenhage factory in South Africa, sources said, in line with a report in local newspaper Wolfsburger Allgemeine Zeitung today.

The sources said output could move there from the middle of next year, but that a definitive decision on the shift has yet to be taken, it has not yet been decided what kind of vehicles will be manufactured in Uitenhage instead. Wolfsburger Allgemeine Zeitung had claimed the Polo model would be made there.

The newspaper also said moving production of the right-hand drive Golf to Wolfsburg had been promised in the 2006 pay round and would safeguard about 1,100 jobs in Wolfsburg.

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Source: [url=http://www.forbes.com/business/feeds/afx/2007/08/03/afx3984752.html]Forbes[/url]