Skoda refused to build a factory in Ukraine

Skoda отказалась строить автозавод в Украине

Skoda refused to build a new plant in Ukraine

The Ukrainian authorities have not offered the company the conditions that would attract a potential investor, so the country could not compete.

Skoda Auto refused from the intentions of creating a new multi-brand plant in Ukraine and considers for this purpose other sites in Eastern and South-Eastern Europe. About it to Agency Interfax-Ukraine reported in the company Eurocar, commenting on the publication in the press about the alleged intention of the Czech company to move the Assembly of vehicles from Ukraine to Serbia.

It is noted that this decision is not connected with the intention of relocation from Ukraine, i.e. the Eurocar plant will continue Assembly of cars Skoda.

“Skoda, determining the potential location for a new multi-brand plant, reduced the choice to four countries in Eastern and South-Eastern Europe. Ukraine is not among them,” according to the company.

In Eurocare explained that the question of expansion of production facilities in the Volkswagen Group and Skoda Auto in particular has matured a few years ago – today, the Skoda factories are working at 120% capacity utilization, using multi-shift working mode.

“In 2017, Ukraine was visited by the Chairman of Skoda Auto, according to the results of the meeting with the head of the Ukrainian government was formed a number of requests to the Ukrainian authorities in the context of the consideration of Ukraine as an external production site for Skoda with the convenient logistics, the agreement on free trade zone with the EU, the availability of trained human resources and lower labor cost (almost double) in comparison with European countries”, – have reminded in the company.

However, add in Eurocare, during this time, Ukraine was never proposed terms that would attract potential investors.

“Ukraine is still not working customs and tax incentives for activities of industrial parks, although the relevant bills were passed in first reading in 2016, not translated into reality announced a 15-year strategy for the development of the electric car market, not considered bills to support the production of electric vehicles, which is included in the agenda at the beginning of the year,” States the company.

At the same time, add in Eurocare actively is liberalized import of used cars actually hauteserre the market and driving further into the shadow format, while the legal business is a demanding one.

“Unfortunately, Ukraine could not withstand the competition for a major investor. We can say that she didn’t even fight … over 1.4 billion Euro investment, 5 thousand new jobs and the possibility of producing 300 thousand cars a year with annual exports of 4.5 billion euros,” concluded Eurocare.

Recall that in 2018 in Ukraine was made 6616 vehicles or 23% less than in the previous year.

As reported, Ukraine in January, demand for new cars in Ukraine fell by 21%.

 

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