Wednesday , February 1 2023

Companies Bulgaria is the Volkswagen radar for a new Škoda factory


The supervisory board of the Volkswagen Group may decide to build the plant next week.

The German Volkswagen group plans to build a new factory for its Skoda subsidiary outside the Czech Republic, possibly in Bulgaria or Turkey. This is the German business version Handelsblatt, referring to its sources in the field. According to the publication, the investment is estimated at € 1 billion and the decision on where to build the new plant can be taken next week.

The factory

Up to now, it is believed that Skoda's production in the Czech Republic will be expanded. However, according to a preliminary assessment, the country does not have sufficient staff to work. The Austrian APA recalls that more than 1.2 million cars are produced in the country annually, with plans to increase this figure gradually over the next few years. The Czech company has already outsourced some of its production to other parent companies due to lack of capacity.

Information on possible investment in Bulgaria is part of a wider text by Handelsblatt in relation to plans to build new production bases for electric models as mentioned in the last sentence of the article.

The countries of Eastern Europe – like Bulgaria or even Turkey – are considered as potential destinations for the Billard project. At present, there are no observations either from Volkswagen or from Skoda, which has been audited by the German company for 27 years. The meeting of the VW Group's supervisory board is scheduled for next Friday, November 16, when the investment program for 2019 will be placed on the agenda. According to Handelsblatt, a final decision can be made and the factory built.

From Handelsblatt's information, it is clear that the plan is to build mainly Skoda cars, but also other brands belonging to the group.

"Capital" asked for information on the issue Lubomir Stanislavov, Executive Director of "Automotive Cluster Bulgaria". He said that in the last six months, surveys of possible investments in a car factory in Bulgaria are carried out twice a month by large foreign companies in the sector. Such studies usually last one to two years. "The fact that Volksawagen has such an intention and research does not mean that the plant in Bulgaria will be a fact, but it is a fact that our country is increasingly falling short of the list of destinations for the construction of a new car factory. BMW has chosen where to build a factory between Hungary, Bulgaria and Romania. We have not overcome, but joining the shorts is a great achievement, big car companies are looking for a mature market where they have these automobile parts are more than 300. In Bulgaria, it is between 180 and 200, compared to Romania is 660, but we approach the right environment for car production, "Stanislavov noted.

Old intentions

A year ago, Reuters reported in a report that Mlada Boleslav's factories raised a problem with the Wolfsburg leadership because they had begun to sink the German parent company's market share. The agency reported sources from the German company that they are trying to transfer part of the Czech Republic to Germany and the Czech brand to pay more for the common technology.

Reuters sources claimed that the benefits of the Czechs were limited – a combination of German technology with cheaper work to boost Volkswagen's reputation before the waves of electric cars in the mass market. The problems became known shortly before the meeting of the supervisory board of the German company last November, which approved the annual investment plan.

Mara Georgieva is working on the issue

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