VW will expand Tiguan production to Hanover factory, report says

The Tiguan, shown, is currently built in Wolfsburg.
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BERLIN (Reuters) -- Volkswagen will expand its production of the Tiguan compact SUV to its Hanover factory in northern Germany to boost capacity utilization at the site, sources said.

The plant currently builds the T5 van, Amarok pickup truck and the Porsche Panamera.

Hanover may lose production of the Panamera under Porsche's plans to focus production at its own factory in Leipzig.

The factory also failed to win an order to build the next-generation Crafter van, which VW wants to produce at a new factory in Poland near its Poznan plant.

A labor representative at the Hanover factory said in January that the plant needs  a new model to safeguard jobs as capacity utilization is running at only 70 percent amid falling demand for commercial vehicles in key European markets.

To bump up the workload in Hanover, one of VW's biggest European assembly plants, VW will add the Tiguan, two sources familiar with the matter told Reuters, confirming a report on Monday in Germany's Frankfurter Allgemeine Zeitung.

The Tiguan is built at VW's main Wolfsburg factory. Hanover would build several hundred Tiguans per day, the sources said.

Volkswagen's supervisory board is slated to approve the decisions on Hanover and Poland by Tuesday, sources said.

VW declined to comment.

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