Volkswagen has announced that its new T-Cross baby crossover will be produced in Spain alongside the Polo thanks to a planned investment of around €1-billion (that’s about R15,7-billion).

The Navarra plant has built the Polo since 1984, and the addition of the T-Cross to the production line means it will be manufacturing a second model for the first time in its history.

The new T-Cross will share its version of the MQB platform with the Polo, so producing both models at Navarra will bring what VW describes as “major efficiency advantages”.

Set to be revealed later in 2018, VW SA earlier told us that the new T-Cross was “destined for South Africa”, although “exact timing is not yet defined”. Of course, the local arm of the German automaker also builds the Polo (and Polo Vivo) at its Uitenhage plant in the Eastern Cape, but has confirmed to that there are currently "no plans to add another model".

VW says the building the T-Cross at the Spanish plant will raise production from 2017’s figure of 244 000 units to around 350 000 units per year, depending on the “evolution of the demand”. The workforce will likewise increase by approximately 10 percent.

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

“That’s how we are increasing productivity and ensuring quality at the highest level for our customers. This is possible due to the strong participation of the production teams in the development phase of a car.”