Volkswagen To Invest 1 Billion Euros In Slovakia Plant
In this article (5)
Volkswagen plans to invest 1 billion euros ($1.18 billion) in its Slovak plant, including 500 million euros to produce next-generation Passat and Skoda Superb models, VW Slovakia Chairman Oliver Gruenberg said on Monday.
The German carmaker’s investment will be in projects across the model range made in Slovakia and will create 2,000 jobs in the coming years, personnel chief Sebastian Krapoth said.
The auto industry, led by Volkswagen and three other carmakers, is the backbone of Slovakia’s manufacturing and export sectors.
Skoda had announced on Friday that production of its higher-end model, Superb, would move to Slovakia. The Superb and Passat share the same platform and many parts.
That followed the cancellation of plans to source production in Turkey. It also upset unions at Volkswagen’s Czech unit, Skoda Auto, home to the Superb brand over the past two decades.
“Total investments for Bratislava are being planned in the range of 1 billion euros,” Gruenberg told a news conference broadcast live on television. “It is an investment across the entire model range at Volkswagen Slovakia.”
He said the plan will not add overall production capacity at the plant, which made 377,750 cars last year. The plant, which mostly produced top-end models such as the Audi Q7 and Porsche Cayenne, exports more than 99% of its output.
Questions & Answers
Q.Which specific car models will benefit from this new investment at the Slovakian plant?
Which specific car models will benefit from this new investment at the Slovakian plant?
The investment includes 500 million euros allocated for the production of the next-generation Passat and Skoda Superb models. The overall investment will cover projects across the entire model range made in Slovakia.
Q.Will this investment lead to an increase in the production capacity of the Slovakian plant?
Will this investment lead to an increase in the production capacity of the Slovakian plant?
No, the plan will not add to the overall production capacity at the plant. Last year, the plant produced 377,750 cars and primarily exports its output.
Q.Why did Volkswagen choose Slovakia for the production of the Superb model instead of a different location?
Why did Volkswagen choose Slovakia for the production of the Superb model instead of a different location?
The decision to move Superb production to Slovakia followed the cancellation of previous plans to source this production in Turkey. The Superb and Passat models share a common platform and many components.
Q.How many new jobs are expected to be created as a result of this investment in Slovakia?
How many new jobs are expected to be created as a result of this investment in Slovakia?
The investment is expected to create 2,000 new jobs in the coming years. This will support the growth across the model range produced at the Volkswagen Slovakia plant.
Reader pulse
VW's Slovakia investment: Strategic?
22,185 votes so far