BUSINESS IN SHORT

Volkswagen plans Sk9 bln investment

GERMAN carmaker Volkswagen plans to invest about Sk9 billion (€298.7 million) in production of two new models of so-called family cars in Bratislava. The Slovak government approved investment assistance in the form of a tax break totalling Sk430.8 million (€14.3 million) on December 17. The European Commission is yet to approve the investment incentive, the SITA newswire wrote.The investment should directly create 760 new jobs by the end of 2012 and a further 1,340 indirect jobs.

GERMAN carmaker Volkswagen plans to invest about Sk9 billion (€298.7 million) in production of two new models of so-called family cars in Bratislava. The Slovak government approved investment assistance in the form of a tax break totalling Sk430.8 million (€14.3 million) on December 17. The European Commission is yet to approve the investment incentive, the SITA newswire wrote.
The investment should directly create 760 new jobs by the end of 2012 and a further 1,340 indirect jobs.

“These models will be targeted at women, young people and student customers,” Economy Minister Ľubomír Jahnátek told SITA. “They are low-fuel-consumption cars, which are the latest development trend in Volkswagen. Over 2,000 new jobs should open in Slovakia thanks to this investment project.”
Originally Volkswagen had planned the investment for the Czech Republic. Slovakia’s transfer to the euro and the better business environment meant the investment was redirected to Slovakia.

Volkswagen already assembles the VW Touareg, Audi Q7, some Porsche Cayenne models and, since March this year, Škoda Octavia models at its Bratislava plant.

Along with Volkswagen, South Korean firm Kia has also unveiled new investment plans. During the second half of 2009 it will launch trial production of the third model at its plant in Teplička nad Váhom near Žilina. Serial production of the new model, the Hyundai Tucson SUV, is projected to start in 2010, SITA reported, quoting Dušan Dvořák, spokesperson for Kia Motors Slovakia.

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