Will Skoda relocate a plant to Romania?

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Volkswagen, the group owning the Skoda brand, could soon decide on relocating the plant located in Ukraine, which has failed to meet the expectations. Volkswagen might relocate the plant to Serbia, Milenko Kostic, owner of Auto Cacak, Skoda dealer in Serbia, said for ‘Vecernje Novosti’. The plant in Ukraine, located near the border with Romania, is manufacturing several Skoda models, capital.ro informs.

Kostic said the plant in Ukraine has failed to meet the expectations and that the Volkswagen and Skoda representatives have contacted him in order to assess the business environment in Serbia.

“For the time being, it is only a rumour, but it will be materialized,” he said, adding that on the list of potential destinations for the plant are Bulgaria, Turkey and Romania.

Mark Langendorf, with the Volkswagen Communication Department, said earlier this month that the largest European car manufacturer is still exploring the options for an investment in a plant in Eastern Europe, but a decision is still to be made, the same source informs.

As ‘Romania Journal’ reported in December, Volkswagen announced is ready to invest in a plant expected to employ some 5,000 people, and has had on the short list Romania, Bulgaria and Turkey. Sources quoted by Bloomberght.com and taken over by adevarul.ro say the plant will become operational in 2022 to produce Skoda Karoq and Seat Ateca. The decision was not connected to the plant in Ukraine.

Currently, the two models are manufactured by VW in Kvasiny, Czech Republic. The replacement to Turkey was announced by sources, but hasn’t been officially confirmed.

 

 

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