Volkswagen’s Czech automaker Skoda Auto highlighted its dedication to its home country, saying it was preparing to add jobs there in the middle of concerns the company could lose some production to Germany.
Skoda has become Volkswagen’s second most successful brand in regards to operating margin and is on target for record sales in this year. But capability is striking a limit and its success is triggering tensions inside the German auto group.
Reuters reported recently that VW managers and unions were looking for to suppress competition from lower-cost Skoda and move some of its production to Germany, raising worries among Czech workers.
Skoda Chief Executive Bernhard Maier informed press reporters on Wednesday the Czech Republic would remain Skoda’s home which it was adding jobs regionally to meet capacity demands.
“Skoda is performing at the edge of its capacity, which is proof that our strategy is working,” he stated.
“At the minute, worrying international need, we are unable to cover it from the Czech Republic, (and) for this factor we are browsing at other production capacities.”
Maier added Skoda had taken on 3,000 employees in recent months and was preparing to work with more “to be able to cover increasing demand.” He said Skoda was in talks with unions about this.
Skoda sold a record 1.13 million lorries in 2016.
Skoda and other market players meet on Wednesday with government officials. At a news conference, Prime Minister Bohuslav Sobotka stated Skoda had ensured him it would do the maximum not to threaten jobs.
Skoda’s Czech union has cautioned any production shift could lead to as many as 2,000 lost jobs at Skoda, which employed 28,000 at the end of last year, leaving out short-lived staff.