Skoda to produce electric car batteries under contract with VW

Dominant Czech car maker Skoda has gained a contract from its parent group Volkswagen to produce batteries for electric cars at its plant in Mlada Boleslav, daily Mlada fronta Dnes writes in its regional supplement for Central Bohemia today. The daily points out that this is a fundamental product of the future, thanks to which new jobs will be created. It also notes that although neither their number nor the total scope of the contract is known as yet, the extent of the production is expected to cover at least the production of Skoda electric cars. Skoda Auto trade unions leader Jaroslav Povsik commented for the daily that the contract is quite important as the share of diesel engine sales is falling and the reversal of this trend seems impossible. Povsik also pointed that the new contract could be regarded as a certainty for the future.

Individual plants owned by Volkswagen compete for contracts, and the group wants to concentrate the production of component parts for electric cars mainly in Germany. The group, including Skoda, plans to replace part of current car production by electric cars. Trade unions, however, fear that this will bring a decrease in the production of standard engines and gear boxes and will lead to a reduction of jobs. According to the paper, Skoda plans to produce its current models Superb and Kodiaq with electric engines, and later it intends to launch an entirely new car. Note that on Wednesday, the government and representatives of the car industry are to sign a memorandum on cooperation in further development of the sector, particularly in the development of electric and autonomous cars and in production digitization.

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