Skoda might outsource part of production

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Skoda might outsource part of production

June 12, 2018 - 16:17
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Volkswagen's Czech brand Skoda announced that it might outsource part of its production, since unit is trying to deal with growing demand. Producer is already experiencing problems with capacity on its plants in Czech Republic.  However, demand for new sport vehicles will result in production increase at Skoda plant to 2 million cars by 2025. 

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Volkswagen's Czech brand Skoda announced that it might outsource part of its production, since unit is trying to deal with growing demand, Reuters informs.

Producer is already experiencing problems with capacity on its plants in Czech Republic. However, demand for new sport vehicles will result in production increase at Skoda plant to 2 million cars by 2025.  Current production volumes are 1,2 million cars.

Volkswagen said that it is going to transfer some production to Germany by 2019, however, it will not solve the problem with capacity bottleneck at Skoda. Unit recently beat Audi as the second profitable brand within in Volkswagen group after Porsche.

Large auto producers, including BMW, Daimler and Volkswagen, usually use contracts with such manufacturers as Magna and Valmet Automotive (Finland) to outsource production. It gives them some flexibility and helps saving investments in their own capacities and resources.

So, Valmet is hiring 1000 new workers this year to help Mersedes with production of sprot car GLC and A-Class compact.