Volkswagen to Open Assembly Plant in UAE

BERLIN December 13, 2004; The AP reported that German carmaker Volkswagen AG will begin assembling heavy trucks in the United Arab Emirates beginning in 2006, a spokesman said Monday.

The company plans to begin with 1,000 commercial vehicles before expanding production to 3,000, spokesman Frank Gaube said. A cooperative contract between the company and the emirate of Abu Dhabi was signed over the weekend, he said.

The deal also will promote lease planning and fleet management in the area, he said.

"The main goal is to set up an automotive zone in Abu Dhabi," Gaube said.

Meanwhile, Volkswagen said its vehicle deliveries in the first 11 months of 2004 rose 1.6 percent, boosted by sales of commercial vehicles.

Deliveries rose to 4.61 million vehicles from 4.54 million in the same period a year ago, VW said.