The production of the Passat will be transferred to the Škoda factory in Kvasiny, where the Skoda Superb is also produced, the German newspaper Handelsblatt reported, citing sources inside the company.
On the European market, Passat sales fell 5.6% to 127,325 units in the first nine months of this year, writes Agerpres.
Also, VW wants to build the third Skoda factory in Europe, as the two units in the Czech Republic operate at maximum capacity, among the possible locations are Bulgaria and Turkey.
The year 2017 was a success for Skoda, which sold a record high vehicle – 1.2 million – while profits increased significantly.
The new factories decision will be taken at the meeting of the Volkswagen Supervisory Committee on 16 November when the German group's investment program was approved.
On Thursday, Volkswagen announced that the Emden and Hanover (Germany) factories will be converted to electric vehicle production by 2022. Electric cars are already being produced in Zwickau. VW has allocated 1.2 billion euros to train 7,700 workers in Zwickau.
Employees in Emden (where the Passat is now being built) and Hannover have ensured that their jobs are guaranteed by 2029 but the company will try to reduce the number of employees in these early retirement units.
Volkswagen has announced investments of more than 34 billion euros ($ 38.4 billion) for the development of mobility services, electric vehicles and cars without a driver until 2022.
The Volkswagen Group portfolio consists of 12 brands, such as VW, Lamborghini, Skoda, Seat, Bentley, Audi and Bugatti, as well as MAN and Scania trucks.