Škoda car assembly in Nizhny Novgorod in doubt

The Czech Republic’s biggest automaker Škoda Auto will have to reconsider whether or not to assemble vehicles at the GAZ assembly plant in Nizhny Novgorod, Russia, a representative at Škoda Mladá Boleslav has said. Despite initial interest, Škoda Auto may back away from a deal after the Russian government approved new measures on car assembly. The GAZ plant was originally meant to produce 160,000 Volga sedans per year but stopped after two years due to low demand. The plant then reached agreement with the Daimler concern for the production of 25,000 Mercedes Sprinter models and has been in negotiations with GM and Volkswagen (of which Škoda is a part). GAZ is seeking an agreement on the production of new vehicles by the end of February. Volkswagen has said it will have to analyse the new conditions for car assembly in Russia before it reaches a final decision.

Author: Jan Velinger