Czech gov’t approves aid in return for Volkswagen investment
The Czech government agreed Wednesday to upgrade infrastructure near two Skoda Auto AS plants if automaker’s parent company Volkswagen AG chooses to expand production there.
The cabinet approved spending 1.4 billion koruna ($87 million) mostly on road improvements around factories in central Mlada Boleslav and northern Vrchlabi in exchange for more investment. Skoda Auto said earlier it was requesting billions in investment from Volkswagen for expanding production in the Czech Republic.
Skoda, which recently won a 1.1 billion koruna ($68 million) contract for 3,500 police cars, is the country’s leading exporter. The automaker sold over 630,000 cars in 2007, an increase of 15% from the previous year. (m&c.com)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.