Volkswagen will expand output of its Tiguan compact SUV to its Hanover site in Germany to boost capacity utilization at the plant, people privy with the matter told Reuters. The Hanover plant currently produces the T5 van, Amarok pick-up truck and the Porsche Panamera. The site risks losing output of the Panamera since Porsche is planning to focus production at its Leipzig plant.
The Hanover site also failed to win the production of the new Crafter van, which VW plans to build at a new facility in Poland near its Poznan plant. A labor representative at the Hanover site remarked in January that the facility needs a new model to secure jobs since it is only using only 70 percent of its capacity.
To shore up capacity utilization in Hanover, VW plans to add the Tiguan compact SUV, two sources familiar with the matter told Reuters, confirming a recent report by Frankfurter Allgemeine Zeitung.
VW currently builds the Tiguan its main Wolfsburg plant. Hanover would produce several hundred Tiguans daily, the sources divulged, adding that VW supervisory board will meet Tuesday to approve the decisions on Hanover and Poland.