By Max Bernhard 
 

Volkswagen AG (VOW.XE) said Thursday that it will manufacture its T-Cross compact sports-utility vehicle at a company plant in Navarra, Spain.

The decision marks the first time that a second model will be produced at the plant, which has manufactured the German car maker's popular Polo model since 1984.

Volkswagen said the addition of the T-Cross is expected to raise the production at the plant to 350,000 vehicles a year from 244,000, and increase the workforce by 10%.

Producing both the Polo and the T-Cross at the same site will be more efficient, the company said, expecting production of the compact SUV to start at the end of this year.

 

Write to Max Bernhard at max.bernhard@dowjones.com; @mxbernhard

 

(END) Dow Jones Newswires

July 12, 2018 04:46 ET (08:46 GMT)

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