Of course, most of the shuffling usually means moving production away from more expensive Germany to the other sites in Europe or around the world. But an eye, of course, has still to be kept on some of the main German Volkswagen shareholders and their sensibilities as well as the local unions, Radio Praha writes..
Higher German labour costs are not that big a proportion of a car’s overall cost, though do eat into the manufacturer’s profit margins.
But the current success story of the Czech Republic’s biggest car maker means that Germany could now re-enter the picture as a possible location to take up some of the capacity strain on Škoda Auto. Škoda Auto’s current Czech plants are operating at full capacity just to try and keep up with demand – a fact that the unions pointed out this week as they began to make their case for a more than 10 percent double digit pay increase next year.
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