Skoda Sells So Many Cars, It Now Looks To Outsource Production

Skoda is having trouble to respond to the booming demand and might outsource some production to a contract manufacturer.

The Czech car maker expects its Kodiaq and Karoq SUV models to lead production at Skoda at over 2 million vehicles per year by 2025, from 1.2 million currently.

Despite the forecast, Skoda is already grappling with stretched capacity at its plants, Reuters reports.  “There is a wide range of options to cover order peaks,” Skoda said on Monday, adding that taking advantage of unused capacity in VW Group’s other factories will not do the trick.

“For that reason we keep looking into alternatives that also include possible contract manufacturing,” Skoda said. “Demand is exceeding our production capacities also in 2018.”

A new factory outside Czech Republic among Skoda’s options

In March company sources said Skoda was looking at ways to build more cars, including building a new factory outside Czech Republic.

VW Group labor boss Bernd Osterioh said last week that shifting some of Skoda’s production to Germany by 2019 will not solve the Czech brand’s bottlenecks. Skoda has passed Audi within the Group to become the second most profitable unit after Porsche.

Also Read: Facelifted 2019 Skoda Superb Caught Undisguised

Osterioh added that a decision on how to increase Skoda’s output will likely be reached by November, when the VW Group’s supervisory board will decide on the rolling budget for capacity, technology and equipment.

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  • It appears that Skoda cars have a higher interior quality than VWs…would be great if they sold them here in the US, however, I think VW will put the kibosh on that…

    • Silimarina

      No they don’t have higher interior quality than VW, at least not European VW’s.

      • Jason Panamera

        It almost the same. There are few places when you can see that VW > Skoda, but really it doesn’t matter.

  • Alfa Giulia QV

    I would suggest the US as one potential place, but VAG will stop that in its tracks.

    • Jason Panamera

      Dunno if skoda would sell better than VW. They are literally same cars, but if we look at it from perspective of dieselgate… there are chances. To achieve it, Superb, SKodiaq and new electric SUV should be first to launch and sell well.

  • Classic Bob

    And with all the overcapacity PSA now has with its Opel plants,.. now wouldn’t that be interesting?

  • alexxx

    No surprises there….good cars and even better price…

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