Photo: Ihned : byznys

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Skoda Auto, subsidiary of Volkswagen Group, refused to create its new multi-brand plant in Ukraine and considers for this purpose other sites in Eastern and South-Eastern Europe. This was announced by the company “Eurocar”, reports “Interfax-Ukraine”.

According to the Agency, this decision is not connected with the intention of relocation from Ukraine. The “Eurocar” as a contract manufacturer of Skoda cars in Ukraine continues its work.

“Škoda car, as a strategic investor, determining on behalf of the Volkswagen Group the potential location for a new multi-brand factory, after a thorough analysis reduced the choice to four countries in Eastern and South-Eastern Europe. Ukraine is not among them”, — stated in the message.

According to official information of Škoda Auto, a final decision will be made within the next months.

“Eurocare” explained that the expansion of production facilities in the Volkswagen Group and Škoda Auto was planned a few years ago — the Škoda factories are now working at 120% capacity utilization, using multi-shift working mode.

Thus, according to the statement “Eurocar”, during this time, Ukraine was not able to offer terms that would attract potential investors.

“Despite the positive message that Škoda is not going to move production out of Ukraine, the conclusion is quite clear: unfortunately, Ukraine could not withstand the competition for a major investor. We can say that she didn’t even fight … for EUR1,4 billion investment, 5 thousand new jobs and the possibility of producing 300 thousand cars a year with annual exports of EUR 4.5 billion,” — said in “Eurocare”.

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