The management of Volkswagen concern wants to deprive competitive advantages of Skoda company. Managers and labor unions of concern insist that measures were taken because of the increased competition with the Czech brand. The auto company can force to transfer a part of production to Germany and also raise a payment for access to technologies of the concern.
Such decision can be made because of a difficult economic situation. While Volkswagen reduces staff, expenses, and deals with consequences of diesel scandal, Skoda can freely take advantages of the holding. The company uses technologies of the German producer, but thanks to smaller payment for labor, costs much cheaper. Representatives of Volkswagen consider that the above-named measures will help concern to become stronger before an exit to the electric models.
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