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VW Mulls New Vehicle Plant in Europe; Skoda May Expand LCV Lineup

Executive Summary

Poland and Turkey reportedly are leading candidates to land a light-commercial vehicle facility, if the auto maker green-lights a new factory.

VIENNA – Volkswagen is considering construction of a new plant for light-commercial vehicles, according to Turkish and Polish reports.

“Currently, they are trying to decide between Poland and Turkey,” Turkish Economy Minister Zafer Caglayan is quoted as saying by the Hürriyet daily. “We expect the results in May.

Polish business daily Puls Biznesu says it has confirmed the Turkish reports with a high-ranking source in the Polish government.

“I explained to them why they were weak in the Middle East and how we would contribute to them,” Caglayan is quoted as saying. “Now they are considering Turkey for the new light-commercial vehicle they will produce.”

Volkswagen operates two factories in Poland, an LCV plant in Poznan and a diesel-engine factory in Polkowice.

The Poznan facility is the sole source for the VW Caddy and Caddy Maxi in both car and LCV versions. It also manufactures the larger VW Transporter, which has its main plant in Hannover, Germany.

Volkswagen has no production operations in Turkey. The German auto maker and its Czech subsidiary Skoda have considered production projects in Turkey in the past, but without any positive results.

Fiat, Ford, Honda, Hyundai, Renault and Toyota manufacture cars or LCVs in Turkey, in several cases in partnerships with local companies.

In related news, Skoda is considering offering a wider range of LCVs, the Czech Ekonom business weekly reports.

Currently, the Praktik version of the Skoda Roomster multipurpose vehicle is the only LCV sold by the auto maker.

The only Volkswagen Group brand that offers several LCV models is VW.

According to Ekonom, there are several scenarios under consideration for Skoda, including offering larger commercial vans similar to the VW Transporter.

Skoda-badged LCVs could be manufactured in Volkswagen Group plants outside the Czech Republic.

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