GERMANS TO DECIDE WHETHER TO SHUT DOWN VOLKSWAGEN ASSEMBLY LINES IN BOSNIA

SARAJEVO, Bosnia (June 18,2008) - The final decision on whether the Volkswagen assembly factory in Vogosca,Bosnia, will be shut down will be made by the German company itself, as it is the majority owner of this facility. This was announced by Adnan Smailbegovic, production director of Prevent BH, which has a 42 percent stake in this factory.

"With the lowering of taxes on cars from July 1 on, the Vogosca factory is becoming ever less interesting, but we hope that we can redirect it towards the production of car parts. It is in our interest to keep this factory running and workers working", said Smailbegovic.

Because of the lower duty on cars imported from EU countries, which is the result of the Stabilization and Association Agreement Bosnia signed with the EU, it is expected that cars from the Vogosca plant will become less competitive on the Bosnian market.
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