Skoda Auto Unaffected by Volkswagen Overhaul Plans as Production Continues
Overview of Skoda Auto's Position Amid Volkswagen's Restructuring
Skoda Auto's Response to Volkswagen's Overhaul
PRAGUE, July 10 (Reuters) - Skoda Auto, the Czech unit of Volkswagen, does not expect any direct impact from the parent company's overhaul plan to cut capacity and model lines, the company said on Friday.
Volkswagen's Planned Changes
• Volkswagen said on Thursday that it planned to drastically cut its model lineup and further pare back capacity, as Europe's largest automaker considers a far-reaching overhaul that sources say could cost around 100,000 jobs. Unions have however moved to block the plan, sources said.
Skoda's Official Statement
• "This development has no immediate impact on our operations," Skoda said in a statement.
• "Business continues as usual. Skoda is currently the second best-selling automotive brand in Europe, and Skoda Auto production plants are operating at full capacity."
Skoda's Role in the Czech Economy
Employment and Economic Impact
• Skoda is one of the largest Czech employers with over 34,000 workers and is at the heart of the country's extensive automobile parts industry, which is also highly dependent on exports to west European car makers, so any changes there would reverberate through the Czech economy.
Industry Dependence on Exports
(Reporting by Jan LopatkaEditing by Tomasz Janowski)
