You're reading: Ukraine out of running as site for new Volkswagen and Skoda car plant

Ukraine is no longer in the running to host a new car plant planned by German automotive giant Volkswagen, a representative of the company confirmed to the Kyiv Post on March 22.

Volkswagen had been looking at Ukraine – among several countries in eastern Europe – as a possible site for a future multi-brand plant, but has struck the country off its shortlist.

Volkswagen’s decision is disappointing for Ukraine, as the plant would have been a substantial addition to the country’s car manufacturing capacity and would have created many jobs.

Volkswagen and Skoda are now considering four different sites in eastern and southeastern Europe, but they have yet to make a decision and are not yet ready to comment.

Kamila Biddle, who is responsible for Skoda’s corporate communications, told the Kyiv Post that, after an intensive analysis phase, they “have narrowed down the choice to four countries in eastern and southeastern Europe.”

A final decision should be taken in the coming few months.

The decision to remove Ukraine from the list was quickly followed by the emergence of rumors of a potential move to Serbia for the country’s sole Volkswagen plant – assembling exclusively Skoda Kodaq vehicles – located in Solomonovo, a village 800 kilometers southwest of Kyiv.

The rumor was spread by news sources in both Ukraine and Serbia on the back of a statement from Aleksandar Vucic – the Serbian President – who declared on March 16 that he would be meeting with Volkswagen representatives by the end of the week.

The Kyiv Post contacted Leslie Bothge, the Volkswagen’s spokesperson responsible for issues of purchasing, production and communications.

She first said the rumors were untrue, gave some more details about the circumstances of the meeting – She said the meeting in question had taken place during a friendly soccer game between Germany to Serbia, played on March 21 and which ended in a draw.

“(There was a meeting) because Volkswagen is one of the main sponsors of the German national (football) team,” she said.