Friday , August 6 2021

company | Bulgaria is Volkswagen's radar for the new Škoda factory

The Volkswagen Group's Supervisory Board may decide to build a plant next week.

The German Volkswagen Group plans to build a new factory for Skoda branch outside the Czech Republic, possibly in Bulgaria or Turkey. This is the German Business Release Handelsblatt, which refers to its sources in the sector. According to the publication, the investment is estimated at a billion euros, and the decision on where to build new plants can be taken next week.


So far it has been believed that Škoda production in the Czech Republic will be expanded. However, according to a preliminary estimate, the country does not have enough employment staff. The Austrian APA Agency remembers that more than 1.2 million cars a year are produced in the country, and plans to gradually increase in the coming years. The Czech company already already outsources its production to other parent companies due to lack of capacity.

Information on a possible investment in Bulgaria is part of a larger Handelsblatt text about plans for concern for the construction of new production bases of electrical models, as mentioned in the last sentence of the article.

East European countries – like Bulgaria or even Turkey – are considered as possible targets for the Billard project. For now there are no comments either Volkswagen or Škoda, who has been supervising German care for 27 years. The VW Group Steering Committee meeting is scheduled for next Friday, November 16, when the 2019 investment program will be in place. According to Handelsblatt, a final decision can be made and where the plant will be built.

From Handelsblatt's information, it is clear that the plan is mainly to build Skoda vehicles, but also other brand owned by the group.

"Capital" asked for information about Lubomir Stanislavov, executive director of "Automobile Cluster Bulgaria". He said that in the last half of the year the polls of potential investments in a car factory in Bulgaria twice a month by large foreign companies in the sector. Such studies typically last one to two years. "The fact that Volksawagen has this intent and research does not mean that the plant in Bulgaria will be a fact, but the fact is that our country is increasingly missing a list of destinations for the construction of a new car factory, we have reported that BMW has chosen where to build a factory between Hungary, Bulgaria and Romania We did not get too much, but the inclusion in shorts is a big achievement, big car companies are looking for a mature market where car parts suppliers have more than 300. In Bulgaria, they are between 180 and 200, compared to Romania's 660 but approaching the right environment for car production, "Stanislav pointed out.

Old intentions

One year ago Reuters reported in a report that Mladen Boleslav's factory created a problem in the leadership of Wolfsburg because they started to "sip" the market share of a German parent company. The agency referred to the German company's sources trying to move part of the Czech Republic to Germany and the Czech brand to pay more for common technology.

Reuters sources then claimed to consider limiting the Czech advantage – a combination of German technology with cheaper work to boost Volkswagen's reputation before the waves of electric cars on the mass market. Problems became known just before the meeting of the German Banking Supervisory Board last November, which approved the annual investment program.

Mara Georgieva works on this topic

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