The Navarra plant in Spain, where the Polo is assembled, expects to raise its production from 244,000 to 350,000 vehicles annually and increase its workforce by 10% following the introduction of the T-Cross.

Andreas Tostmann, head of VW production and logistics, said: “The T-Cross and Polo share a production matrix. By producing both models in Navarra, we can achieve major efficiency advantages.

“The plant, which has produced the Polo since 1984, will build a second model for the first time in its history.”

With the new T-Cross, the Volkswagen brand extends its SUV model range in the fastest-growing market segment in Europe.

According to research, the compact SUV segment will approximately double during the next 10 years.

The Volkswagen Group (www.volkswagenag.com) has committed to investing about 1 billion euros by 2019 to produce both the Polo and the new T-Cross in Navarra.

Emilio Sáenz, president of the Navarra plant, said: “We very much welcome the production of a second model in Navarra, and we are proud to contribute our experience to the manufacture of the T-Cross.”

The T-Cross, which is scheduled to start production at the end of this year, expands the SUV offer by Volkswagen.

This now comprises the T-Cross, T-Roc, Tiguan, Tiguan Allspace and Touareg.