Volkswagen-owned Skoda Auto announced Wednesday that it is expanding its plans for China. With production of Skoda's Octavia scheduled to spool up in 2007 at Volkswagen's plant in Shanghai, the company announced that it will add its Fabia (pictured) and Superb models to its Chinese portfolio.

Skoda plans a network of exclusive Skoda dealers in China, providing both sales and maintenance support. Echoing the words of every other auto industry executive you can think of, Skoda Auto's chairman Detlef Wittig said, "...we see China as one of the strategic markets for the brand's future growth."

Even with the resources of parent Volkswagen, it's hard to imagine how a small automaker like Skoda can establish an independent presence in China, and even harder to see why Volkswagen thinks this is a good idea.

[Source: Skoda]

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