Skoda may cut around 870 jobs, or around three percent of its workforce, during 2009.

The job cuts were reported in a local newspaper but have not been confirmed by the company.

Skoda has already cut production by around 31,000 units this year. Nevertheless it will still produce around 690,000 vehicles, up 9.5% on a year ago.

The Czech Automotive Industry Association (AIA) has said it expects local firms to increase output by 4.0-5.0% this year, down from its previous estimate of 8.0%, and short of a target of 1m cars.