PRAGUE, July 10 (Reuters) – Skoda Auto, the Czech unit of Volkswagen, does not expect any direct impact from the parent company’s overhaul plan to cut capacity and model lines, the company said on Friday.
• Volkswagen said on Thursday that it planned to drastically cut its model lineup and further pare back capacity, as Europe’s largest automaker considers a far-reaching overhaul that sources say could cost around 100,000 jobs. Unions have however moved to block the plan, sources said.
• “This development has no immediate impact on our operations,” Skoda said in a statement.
• “Business continues as usual. Skoda is currently the second best-selling automotive brand in Europe, and Skoda Auto production plants are operating at full capacity.”
• Skoda is one of the largest Czech employers with over 34,000 workers and is at the heart of the country’s extensive automobile parts industry, which is also highly dependent on exports to west European car makers, so any changes there would reverberate through the Czech economy.
(Reporting by Jan LopatkaEditing by Tomasz Janowski)
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