Skoda expands Czech operations
MLADA BOLESLAV, Czech Republic - Skoda Auto is to expand its Czech plant in Kvasiny. The plant currently employs 1,200 staff. That number will grow to 3,000 when construction over a 10-hectare site has been completed.
'We are planning to build an environmentally-friendly paint shop in Kvasiny,' said Skoda spokesman Milan Smutny. 'We want to make all our plants (Mlada Boleslav, Vrchlabi, Kvasiny) equal.'
Mlada Boleslav builds the Fabia and Octavia, while production of the Felicia has been transferred to Kvasiny and Vrchlabi. Skoda said Kvasiny eventually would build a new Skoda model line.
UK government acts on car prices
LONDON - The UK government has taken action to force new-car prices down after a commission found UK customers paid 10-12 percent more for new cars than consumers in other European countries.
But automakers last week said a surprise clause in the government order could force them to pay dealers bonuses more than once for every car sold. They claimed the clause was added at the last minute by the government to allow UK dealers to buy a right-hand-drive car from other European countries, such as Denmark.
The automakers are concerned the new law would mean the dealer in Denmark would be paid a bonus for selling the car, and the UK dealer would also receive a bonus once the car was sold to the consumer. This is potentially a form of 'double dipping,' said a representative of one manufacturer in the UK.