More details have emerged about a low-cost family sedan planned by Skoda to compete against the successful Logan, which is produced by Renault's Dacia subsidiary.
Skoda union chief Jaroslav Povsik was cited in the union's weekly newsletter as saying a mock-up of the new car, with a working name of A Entry, has been presented.
The Mlada Fronta Dnes Czech daily newspaper reported the model could be priced around 260,000 crowns ($13,650), putting it somewhere between Skoda's Fabia subcompact and the Octavia sedan.
The newspaper said the car would be aimed at lower-income customers looking for a larger family car. The production launch of the new model was not reported.
A Skoda spokesman declined to comment.
Skoda CEO Reinhard Jung told a conference organized by Automobilwoche, a German language sister publication of Automotive News Europe, last November that the car would launch in two to three years.
Jung said Skoda, the Czech unit of Volkswagen AG, wanted to strengthen its product lineup to take advantage of increasing sales of low-cost cars.
Skoda has been positioning its cars more upscale in recent years but Jung said "it's our clear aim also to produce attractive new cars for entry-level buyers."
Skoda's Logan fighter will use components from the Fabia and Octavia. It will also be more expensive and upscale then the Logan, which starts at 7,300 euros in Germany.
Skoda sold a record 684,226 cars last year, helped by car scrapping subsidies in western markets like Germany and expansion in China.
Skoda cut production of its smaller models, such as the Fabia, at the start of this year, with the end of scrapping schemes hitting demand.
Reuters contributed to this report