German car manufacturer Volkswagen revealed that production of a new line of small family cars in its Slovak factory would increase capacity by creating 1500 direct and an additional 7000 indirect jobs at the start of 2011, international media reported.

Volkswagen said in a media statement that Bratislava was selected for the production of its New Small Family line of cars in April 2009. The German car maker, which produces its more expensive VW Touareg, Audi Q7, Porsche Cayenne and Skoda Octavia models in Slovakia, was previously obliged to slash production several times in 2009 due to low demand resulting from the global crunch.

The Slovak Spectator reported that production capacity at the Bratislava facility is poised to increase to 400 000 vehicles a year after the New Small Family production line is put in operation.

"The launch of production scheduled for 2011 will add 1500 new jobs to 7800 jobs already at the plant," Volkswagen chief executive Andreas Tostmann told the Spectator.

"The 308-million-euro investment will create up to 7000 indirect jobs, more than half of them in Slovakia," he added.

Construction at the Slovak factory, which is poised to expand the facilities and production capacity of the plant, was launched on November 23, and that in itself will create 1800 temporary jobs, the report says.

Volkswagen initiated car production in Slovakia in 1991, and only last year more than 188 000 vehicles were produced. This was still a marked decline from 2007 figures when the plant produced 249 000 vehicles.