German carmaker Volkswagen AG says it will build its new Microbus passenger vehicle at its plant in Hanover, Germany. The German city beat out Palmela, Portugal, for the the Passat-based van program and will benefit from 1,500 new jobs. (see related story:AutoEuropa Future Uncertain as Microbus Heads for Hanover) Production is slated to begin in 2005, VW says.

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