Skoda Will Borrow VW Capacity to Make More SUVs

Volkswagen AG’s Skoda brand will temporarily add production of its Karoq SUV/crossover vehicle at a VW plant in Osnabruek, Germany, to keep up with strong demand for the year-old model.

Skoda will begin Karoq assembly at the German facility this autumn, Automotive News Europe reports. The company’s main Karoq factory in Mlada Boleslav, Czech Republic, will continue to operate at capacity.

The Osnabruek plant currently assembles the VW Tiguan crossover and Porsche Cayenne crossover and Cayman sport coupe. Skoda’s Czech facility will add a small SUV model next year and add an electric vehicle in 2020.

Skoda currently offers seven models. The company plans to expand its lineup to 19 new or redesigned vehicles by the end of 2020, including plug-in hybrid and all-electric models.

Reuters reported in March that VW was looking for ways to increase capacity for the hot-selling brand, including adding another assembly plant. Skoda’s overall sales have jumped by about one-third in five years, zooming to a record 1.2 million vehicles last year. ANE says retail sales in January-March climbed 12% to 316,200 units.