Autoeuropa factory wants new VW in 2005.

Volkswagen group's Portuguese plant is competing with VW factories in central Europe for production of a new model beginning in 2005.

The Autoeuropa plant in Palmela, south of Lisbon, currently builds the VW Sharan full-size minivan and its sister models, the Seat Alhambra and Ford Galaxy. Production of all three is due to end by mid-decade.

Executive Director Gerd Heuss said Autoeuropa could compete with low-cost plants in eastern Europe.

"We have a top-quality work force that can meet any challenge," he said.

VW has central European plants in Poznan, Poland, ...