Volkswagen announces it will double its investments in Slovakia to a billion euros (1.36 billion dollars) in the next five years

Volkswagen’s Slovak unit has reported that the VW mother company plans to give it €1 billion over the next few years to boost car and car parts production in Slovakia.

"In the coming five years, the company will double its investment compared to the past five years," Andreas Tostmann, head of VW Slovakia, said in a press release.

He added that Volkswagen would "focus on new technologies, boost production at its car plant in Bratislava and components plant in Martin," northern Slovakia.

Volkswagen said earlier it expected to launch production of its new small family car line at its Bratislava plant this year.

The company's output in Slovakia fell in 2009 due to lower demand for expensive SUV models produced here amid the global economic slump.

But as the economy recovered in 2010, Volkswagen increased output over the first six months by 43 percent compared to the previous year.

The company has already invested more than €1.7 billion in the Euro zone countries over the last few years, according to Reuters.

The Slovak plant, which is situated near Bratislava, produces SUV models including the Volkswagen Touareg, Audi Q7, and parts of the Porsche Cayenne.

Volkswagen Slovakia, which began production in 1991, exports nearly all its output, mostly to Germany and China.