Volkwagen AG's decision this week to assemble a compact cross/utility vehicle in Wolfsburg, Germany, and not lower-cost Portugal, is a decisive “starting point” and a “breakthrough” in determining where future products will be built, says Bernd Pischetsrieder, VW chairman of the board of management. Choosing a production site for the Golf-based CUV, known as the Marrakesh, became symbolic of the showdown between the auto maker and the powerful trade union IG Metall over the high cost of ...

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