BOSNIA: CARMAKERS VOLKSWAGEN TO RE OPEN ITS FACTORY

(7 Jul 1998) Serbo-Croat/Nat One of the world's largest carmakers is re-opening its factory just outside Sarajevo, another sign that life in Bosnia is getting back to normal. Volkswagen's joint venture Vogosca car plant will initially just assemble Skodas for sale across the former Yugoslavia and export to other countries in southeast Europe. This will create several thousand much-needed jobs and a welcome boost to the local economy. The Vogosca car plant, just outside Sarajevo. Before the war in Bosnia, it was a thriving joint venture between giant carmakers Volkswagen and a local company. It kept turning out cars and light trucks until vicious fighting along the front-lines metres from the factory forced them to shutdown. During the worst of the siege, with spare parts almost impossible to find, the cars from Vogosca earned a reputation as the most reliable vehicles. Now with the worst of the war damage repaired, it's about to re-open. There's been massive investment to repair that damage. SOUNDBITE: (Serbo-Croat) "200 of our employees entered this factory two years ago, but we found destroyed factory with damage estimated over 150 million DEM." SUPER CAPTION: Redzo Mujdzovic, Volkswagen Sarajevo Directly and indirectly, several thousand jobs should eventually be created. SOUNDBITE: (Serbo-Croat) "This contract signature in Volksburg is very significant for TAS (Sarajevo car factory) and for Bosnia and Hercegovina in general. We will employ 1,500 people and in cooperation with other companies, 1,500 more." SUPER CAPTION: Redzo Mujdzovic, Volkswagen Sarajevo Volkswagen will hold a 58 percent stake in the new company, and the Sarajevo-based UNIS the remaining 42 percent. To begin with the company will assemble cars from another Volkswagen-owned company, Skoda, from parts shipped in from elsewhere in Europe. The Skoda Felicias will be sold across former Yugoslavia, with the bulk of them, 90 percent, exported to other countries in southeastern Europe. The deal, expected to produce first vehicles by the end of August, is one of the biggest steps forward in regenerating the war-torn Bosnia economy. Find out more about AP Archive: http://www.aparchive.com/HowWeWork Twitter:   / ap_archive   Facebook:   / aparchives   ​​ Instagram:   / apnews   You can license this story through AP Archive: http://www.aparchive.com/metadata/you...