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VW to Get Aid from Polish Government

Even if Volkswagen just bought 49.9 percent of German automaker Porsche and 19.9 percent of Japanese car manufacturer Suzuki, so apparently there are no financial issues, the German brand is due to receive 2.9 million Euros from the Polish government. The financial aid is meant to help them develop a new diesel engine production line at their plant in Polkowice, Agence France-Presse wrote.

Volkswagen will also invest about 60 million Euros of its own money at the Polish plant in order to be able to produce around 2,400 units a day of the new 1.6-liter diesel common-rail engine. The new production line will create about 50 jobs in the next five years. Volkswagen plant in Poland currently has around 1,100 employees.

During the month, Volkswagen was the second largest producer in Poland, thanks to its output of 8,621 units, which means a 10.05 percent increase year-on-year. The German car manufacturer has a second facility at Poznan, which produces Caddy, Caddy Max and Transporter T5 commercial vehicles. This plant employs about 6,000 workers at present.

“Polish vehicle production has seen some revival during the second half of the year due to the various incentive schemes on passenger car models in western Europe. Poland enjoyed its geographic location to Europe and favourable exchange rates, which has attracted various automakers to invest in production in the country,” IHI Global Insight analyst Tim Urquhart said in a note.
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