It may surprise you that Europe’s largest car maker is planning on business expansions in Slovakia, the Euro Zone’s second poorest country, but Volkswagen have stated that production capacity will reach the 400,000 mark.

Volkswagen will invest 1.5 billion Euros in the country, a piece of news which is sure to be uplifting the Slovakian automotive industry and perhaps the country in general. Volkswagen are also set to create a new body shop worth 600 million Euros.

The splendid Volkswagen UP! was added to the Slovakian car line-up too, helping sales to increase. The main catalyst in Volkswagen’s increase of sales was sports utility vehicles.

Albrecht Reimold, CEO of Volkswagen Slovakia said that the company are on track for meeting this year’s targets along with next year’s.

As you may have expected, the Slovakian car market is one of the most import export markets in the central European region for Volkswagen. They manufactured 210,441 cars in 2011 which was a great increase from the 144,510 that was produced in 2010.

Volkswagen Slovakia develops an array of some of the company’s most desired vehicles in the world. These include the Volkswagen Touareg, the Audi Q7 and even some stages of the Porsche Cayenne.

Volkswagen operation in Slovakia is clearly reaching a high point. Operations here will surely raise a few eyebrows as production levels and sales are defying the Euro Zone crisis.

Volkswagen are confident of reaching their estimated 400,000 target this year. They also hope to reach production levels of a similar figure next year too.

The fact that Slovakia has lower labour costs helps Volkswagen lower costs a great deal.

Sales of cars in Europe have taken a strong hit, with figures dipping by 8.4 per cent in May alone. Volkswagen’s sales figures took a massive 5.5 per cent dip. Peugeot Citroen led the way in that respect by losing out on the most sales.

Volkswagen is  Europe’s number one performing car manufacturer and the second best in the world, but even they have no defence against the Euro Zone debt crisis which is crippling the car industry. Banks are unwilling to give out car loans as freely as they used to before. Customers are being priced out of purchasing a car with essential living costs consistently on the rise.

That being said it is quite remarkable that Slovakia is one place that is actually showing a form of prosperity.