Volkswagen has said that it is to produce its "New Small Family" models in Slovakia, with expansion and investment at facilities in Bratislava on the cards.

The investment is thought to be worth €308 million and will create 1,500 new jobs. It will also mean that VW Group production in Slovakia will rise to 400,000 vehicles per year, as the new models join the Audi Q7, Porsche Cayenne, Skoda Octavia, and Volkswagen Touareg as being a product of the former eastern block country.

Details of the New Small Family cars are yet to be announced, but it is believed they will be based on the Volkswagen Up! concepts and will be on the market sometime in 2011.