German carmaker Volkswagen is planning to invest about EUR785m through the next five years in its Pamplona facility in Span.
Being the third automaker along with Renault and Ford to invest in recession-hit country, Volkswagen's spending is aimed at setting up equipments to build the next generations of Polo.
Volkswagen said in a statement: "A large part of the 785 million euros investment will go to prepare installations for manufacturing the next generations of Polo and its substitute in the future."
Located on the outskirts of Pamplona in Navarra, the facility has a production capacity of 300,000 vehicles per year, and is claimed to be automaker's largest producer.
According to the Spainish government, the investments are the result of a labour market reform that enhances the country's competitiveness for businesses, while making cheaper for firms to hire and fire employees.
Earlier, Renault revealed plans to hire 1,300 new workers at its Spanish facility, while Ford planned to shift its production to Spain by ending production at its Belgium facility.
