Build-up! Skoda campaigns for small car manufacturing

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Only a few months ago we brought you initial reports that Skoda was campaigning within the Volkswagen Auto Group to get its own version of the upcoming Volkswagen up! range. The Czech subsidiary, however, may get even more than that as emerging reports suggest that the production of the vehicle may be undertaken entirely by Skoda, including its own versions as well as those for Volkswagen and SEAT.

If Skoda gets what it's asking for, it could built the vehicles in Vrchlabi, Czech Republic – either at its existing facility or at a new one adjoining – or in Pamplona, Spain. Although Skoda is initially targeting 250,000 units of the vehicle annually, production is also tipped to expand to new facilities in Russia and India where an even lower-cost version would be made, bringing total annual production up to 500,000 – around the same rate at which rival European automaker PSA is cranking out the Peugeot 207. The move would improve economies of scale for the platform and help Volkswagen keep production costs low in order to help ward off the competition.

[Source: Automotive News Europe – sub. req'd]