Volkswagen has reportedly decided that uncertainties over the level of the Czech currency mean that it won’t now manufacture its Up! small car in the Czech Republic.
Go deeper with GlobalData
The Czech currency has shown volatility in the current financial crisis and VW is now concerned that a volatile koruna poses profitability risks on such a low-margin car.
The Hospodarske Noviny newspaper reported that VW was previously planning a possible start of production of the small car in the Czech Republic in 2010. The Czech Republic was earmarked as a supply base for European markets.
The report adds that due to lower production levels in its Western European plants amid the global economic slowdown, the VW may utilise that unused capacity for Up! production.
The project would have provided jobs for up to 3,000 Czechs, the report said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
