Production of Škoda’s fifth model line is due to start in 2009 and many new jobs will be created in the firm’s home country following this announcement. The Kvasiny facility, along with Škoda’s other plant in Vrchlabí, will be extensively modernised and expanded in order to meet the board’s aim of having three full-scale Czech factories by 2010.

Mladá Boleslav, the carmaker’s main plant and headquarters, will continue to produce the Fabia and Octavia. However, the Volkswagen plant in Bratislava will help to satisfy the high demand for vehicles by increasing its production of the Octavia.

Detlef Wittig, chairman of Škoda’s board of directors, said: “Thanks to the growing demand for the Octavia we are looking for suitable manufacturing capacities elsewhere that will enable us to quickly react to the enormous interest shown by customers in our model range. “