PRAGUE -- Skoda has temporarily stopped production the first-generation Octavia at its plant in Vrchlabi, Czech Republic. The plant should start making the car again early next month, said Skoda spokesman Jaroslav Cerny.
The reason for the halt is that demand for the sedan and station wagon variants, which are sold as the Octavia Tour in most countries, has declined in key markets such as Russia, Ukraine and Romania.
Skoda offers the car in those markets as a low-cost competitor to the Logan from Renault.
The Vrchlabi plant will continue to assemble the second-generation Octavia, Cerny said.
The Vrchlabi plant is Skoda's smallest and oldest plant in the Czech Republic.
The plant is an assembly-only site with no paint room.
Skoda planned a major renovation of the plant in anticipation that it would be used to produce the Up minicar for parent Volkswagen group.
But VW decided last year that Vrchlabi will not get the Up because of the strength of the Czech crown coupled with the country's reluctance to replace the crown with the euro.