The selection of a new factory location for Škoda is narrowing. Serbia is in the game now!
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Today, cars of the Italian brand Fiat are manufactured in Serbia. In the future, Škoda cars could also be added.
The Volkswagen Group is looking for a place to build a new factory, which is supposed to be in charge of Skoda. The plant is supposed to solve its problems with insufficient production capacity by moving the production of the Karoq model and the derived Ateca seat. The place of construction has not been decided yet, but Serbia has the biggest chance.
“We're still in the analysis phase. This is not an easy decision, ” says Škoda Auto Chairman Bernhard Maier, who said the decision could be made in the first half of this year. The automaker does not have much time for selection, the new factory is due to start operating in 2022, and it is high time to start building it.
Skoda chose from ten possible locations, but the selection was already narrowed down to four, but without more information about where it lies. So far, the most speculated about the construction of a new factory in Bulgaria and Romania, according to the behind-the-scenes reports, fell. Similarly, the race does not appear to be in Turkey. The previously allegedly preferred country is struggling with economic problems, the dramatic fall of the value of the Turkish lira has caused a significant drop in both vehicle production and sales there, which of course affected Skoda's choice.
Serbia has the biggest chance to build the plant. Its advantage is to be cheap labor, experience with automotive production and relative proximity to other group factories.
The local newspaper Vecernje Novosti has even written that it is decided and that the Seat Ateca and Škoda Karoq will be produced in this Balkan country. It is already in operation with Fiat, which produces the 500L in the former Zastava factory in Kragujevac . Newly, a small SUV could be added to compensate for lower interest in the small MPV 500L. As a result, production was stopped in Kragujevac around Christmas for two months.
The selection of a new factory location is not only difficult for the concern to find the most cost-effective place, but also because of the pressure of the German trade unions. They are already calling for the company to make better use of the capacity of German factories than to build a new plant in a place with a cheaper labor force. Because of the fact that the Volkswagen brand intends to cancel thousands of jobs due to the onset of electromobility. They will simply not be needed for easier production of electric cars.
The construction of a new factory in the east of Europe is part of plans to restructure the Group's production. Emden's German plant, which today produces the Passat and Arteon models, will focus on the production of electric cars, with the production of the Passat family models in the new generation from 2023 to the Kvasiny plant in Škoda, where it will be alongside the Skoda Superb and Škoda Kodiaq. However, the space for the new Passat must be released in the East Bohemian plant due to the full production capacity, just by moving the production of Karoqu and Ateca into a completely new plant.