Czech automaker Skoda to produce new "Octavias" in China

Representatives from the Czech automaker Skoda Auto have signed a licensing agreement in China for the production of the company's "flagship" Octavia model in that country in 2006. Skoda's parent company Volkswagen, already produces models in China. While the Skoda models have also been planned for the Chinese market, eventual export to neighbouring countries has not been ruled out. Full production will come underway by 2007 when Skoda Auto estimates it could produce at least 40, 000 cars in China.