Volkswagen Czech Republic unit Skoda Auto is working on a new model to fit between its small Fabia and Octavia family sedan, according to a local report.
Union chief Jaroslav Povsik told daily Mlada Fronta Dnes that a mock-up of the new car, with a working name of A Entry, had been made. He said the new model would be aimed at a lower price range.
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Although details of pricing and production plans were not certain, the model could be priced around CZK260,000 (US$13,650), the paper said.
It added the new car would be aimed at lower income customers looking for a larger family car.
Skoda declined to comment. The company sold a record 684,226 cars last year, helped by scrapping subsidies in western markets like Germany and expansion in China.
It exports around 90% of its production and is recognised as a measure for the Czech economy, which is expected to post a modest expansion this year after contracting more than 4% last year.
