FRANKFURT -- A new 700 million-euro ($823 million) investment program in strike-hit Volkswagen unit Seat comes on top of existing plans and will fund development and quality assurance, Seat said.
The extra investment Volkswagen approved on Friday, Nov. 25, will supplement a group-wide program agreed on Nov. 11, when Volkswagen said it had earmarked 22.7 billion euros over the next three years for the group's core automotive division, Seat's German office said in a statement.
"This is clear evidence that Volkswagen doesn't just believe in a future for Seat, but that it's also ready to fully support the brand and the business," Volkswagen CEO Bernd Pischetsrieder said.
Seat announced late on Friday that Volkswagen would invest 700 million euros in it over the next three years. Earlier that day, unions had decided to call a 24-hour strike in protest at Volkswagen's plans to cut 1,400 jobs in Spain to save costs.
"The main focus of this new investment program lies in improving the quality of business and production processes in order to meet more demanding quality and cost targets," Seat said. The investment would go towards development, quality assurance, information technology and spare parts systems, it added.