Volkswagen’s Czech carmaker Skoda Auto will produce a new vehicle in its plant of Kvasiny, eastern Bohemia, Czech Republic – Czech prime minister, Bohuslav Sobotka said on Monday.
The decision is expected to create hundreds of new jobs in the auto sector in the country – the biggest exporter.
A Seat plant for the new model was also under consideration, but considering that operation costs in the Czech Republic are significantly lower than those in Spain, VW decided to go for the Czech Republic.
“Very pleased that another model is going to be produced in the Czech Republic.”, VW’s chief executive, Martin Winterkorn, said.
However the executive did not disclosed the exact size of the investment or the number of jobs the investment will create.
For the moment Skoda did not specify what model would build at the Kvasiny plant – but media reports have indicated this is likely to be a new SUV – closely related to Volkswagen’s forthcoming CrossBlue concept. Currently the Kvasiny assembly plant builds the Roomster, Yeti and Skoda Superb.
But back in December Prof. Dr. H.C. Winfried Vahland, the Chief Executive Officer of Skoda Auto said an SUV will arrive in 2016.
In 2013 Skoda and Spanish carmaker Seat accounted for about 13 percent of Volkswagen’s 9.7 million vehicles sold.