VW Navarra plant, SpainVolkswagen is planning to make the new T-Cross compact SUV at its Navarra plant, following an investment of around €1 billion ($1.17 billion).

The addition of the T-Cross will potentially raise output at the plant from 244,000 units in 2017 to around 350,000 a year and increase the workforce by about 10%, depending on how demand evolves.

The plant, in north-eastern Spain, has been making the Polo since 1984, and the introduction of the T-Cross will be the first time the factory has built a second model.

The company said the decision to add the T-Cross to Navarra was partly because it shared the same platform with the Polo, and will use the same parts and components on the MQB chassis.

“With the production of the new T-Cross in Navarra we are again using the flexibility and advantages of our worldwide production network,” commented Andreas Tostmann, head of Volkswagen production and logistics.