Skoda Auto has abandoned the intention to create a new multi-branded plant in Ukraine and is considering other sites in Eastern and Southeastern Europe for this purpose. It is noted that this decision is not related to the intention to relocate production from Ukraine, that is, the plant Eurocar will continue to build Skoda cars.
“Skoda, while defining the potential for a new multi-branded plant, has reduced its choice to four Eastern and Southeastern European countries. Ukraine is not among them,” the company said.
In Eurocar they add, during that time Ukraine didn’t offer the terms that would attract a potential investor.
“Customs and tax incentives for industrial parks still do not work in Ukraine, although the draft laws were adopted in the first reading in 2016, the announced 15-year-old Strategy for the development of the market for electromobiles has not been implemented, the bills to support the production of electric vehicles haven’t been examined since the beginning of the year,” they state in the company.