Škoda Auto to narrow shortlist for new plant to two countries

Hospodářské noviny reports that Škoda Auto and its owner Volkswagen are about to narrow the decision on where to build the new production plant the company needs. "In the coming days, we'll be choosing between two countries where we could build the new factory," said Škoda's chairman of the board Bernhard Maier. "The final location is something we want to decide by the end of the year." It's believed that Volkswagen is looking primarily to Eastern Europe where production is cheaper and where available labor is more plentiful.

Among the two most common guesses at this point are Bulgaria and Turkey, according to HN. What's certain is that Škoda needs to increase its production capacity, as the company could sell up to 200,000 more cars annually than it can currently produce. Maier hinted that while Škoda would be in charge of the investment, the new facility would likely turn out a variety of brands of cars. Czech union leaders claim that there are forces within Škoda that haven't given up hope of building new capacity somewhere in the Czech Republic.