Production of the new generation of the Škoda Superb model will move to Bratislava, where it will be assembled together with Volkswagen Passat cars. The decision of the Volkswagen Group, which was expected, was confirmed by the carmaker’s supervisory board on Friday.
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According to experts, the relocation of Superb production could free up capacity in the Czech carmaker, making it possible to produce more other models. The company can use this, for example, to expand the production capacity of SUV models Kodiaq and Karoq, thus reducing waiting time for customers.
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The relocation of Superb production was speculated as early as 2017 and 2018. The VW Group then decided to move the production of Passat family cars, which also includes the Superb, to Kvasin. Subsequently, there was talk that Superb and Passat would be produced in the group’s brand new factory in Turkey.
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In July this year, however, Volkswagen announced that it had stopped plans to build a new factory. Behind his decision is a drop in demand due to the coronavirus crisis. Volkswagen postponed plans to build a factory in Turkey last year due to international criticism of Turkish military operations in Syria.
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The Volkswagen Group bought the Czech carmaker in 1991, acquiring 30 percent of the shares. In 2000, Volkswagen already owned 100 percent of the shares. Last year, Škoda Auto delivered 1.24 million cars worldwide. It operates three production plants in the Czech Republic, produces in China, Russia, Slovakia and India, mostly through group partnerships, as well as in Ukraine and Kazakhstan in cooperation with local partners. It is active in more than 100 markets. It employs almost 39,000 people, of which almost 34,000 in the Czech Republic.
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Škoda Auto’s operating profit fell by 60 percent to 469 million euros (CZK 12.9 billion) in the first nine months of this year. The negative impact on the economy was mainly due to lower sales volumes caused by the covid-19 epidemic, the development of exchange rates and also extraordinary expenses related to emissions.
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