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VW Autoeuropa Factory in Palmela is the largest foreign investment project ever done in Portugal, and its goal was to produce three "MPVs" (Multi Purpose Vehicles) from three different brands: VW Sharan, SEAT Alhambra and Ford Galaxy. VW Autoeuropa has a highly positive impact on the Portuguese economy, especially in what exports is concerned.

The overall initial investment in the project, including the development of the 3 models, amounted to 1.970 million EUR. When in 1991 VW and Ford signed the Autoeuropa Automóveis, Lda. "joint-venture", the responsibilities in the project were split: VW led the work on vehicle development, while Ford planned the factory facilities and purchasing.

 

Close contact and co-ordination between all the relevant departments in the two companies was kept by means of "state of the art" communication and data transmission equipment.

 

On January 1st, 1999, Volkswagen Group assumed 100% of VW Autoeuropa's ownership. This change in the shareholding provided the potential for an increased use of the capacity of the Palmela plant. Moreover, it had no negative effect on the plant activity, which continued producing the Volkswagen Sharan, the Seat Alhambra and the Ford Galaxy.

 

According to the agreement signed by Volkswagen and Ford, both reinforced their intention to maintain the ongoing efforts to improve the competitiveness of the Sharan, Alhambra and Galaxy produced in Palmela, having been celebrated four years later, in May of 2003, the production of 1.000.000 units.

 

In February of 2006, VW Autoeuropa ends the production of the Ford Galaxy and initiates the production for the market of VW Eos, the first luxury car of the brand to be produced in Portugal.
Due to the characteristics of the new model, a cabriolet with a unique convertible roof, VW Autoeuropa factory starts to work with 2 production lines, one dedicated to the production of the MPVs VW Sharan and Seat Alhambra and another dedicated to the cabriolet VW Eos.

 

Characterised for being a competitive factory in the automobile sector "gifted" with state of the art technology, VW Autoeuropa presents itself as a flexible company capable of facing the future challenges following the latest quality and environmental standards.
Yet in 2006 is done the announcement of a new product to palmela's factory that intends to revive the former model VW Scirocco.