NVW to build new Microbus in Germany

11 June 2002: Volkswagen AG has decided to manufacture its new retro-style Microbus minivan at its existing factory in Hannover, Germany, creating 1,500 jobs.

Production will begin at the end of 2004 at the earliest, and the model will not be launched before 2005, sources said.

The other candidate for the project was VW's factory in Palmela, Portugal, where it currently produces the Sharan people carrier.

VW management reportedly delayed the decision on where the vehicle would be produced due to the lack of visibility of the US auto market - the main market envisaged for the Microbus - and due to uncertainty about whether VW could sell 100,000 units.

The company's Hannover works will now undergo a "major restructuring," VW's new chairman Bernd Pischetsrieder said.

The Minivan is being styled to resemble the cult VW 'hippy vans' of the 1960's, following on from the success of the New Beetle and BMW's new Mini.

June 2002