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( 05 / January / 2009 )
Slovakia approves tax relief for VW
The Slovak government approved tax relief of up to €14.3 million (Kč 380 million) for the German concern Volkswagen that plans to invest about €289.75 million in extending its production in Slovakia. The investment is to create 760 new vacancies by the end of 2012. Volkswagen plans to produce two new car models with high value added in Bratislava. Some media have reported that Volkswagen is going to produce its small urban vehicle, Volkswagen Up! in Bratislava. VW head Martin Winterkorn has not, however, confirmed this information. It has not been decided yet when and where the small family model will be produced, Winterkorn said, according to daily Hospodářské noviny. Volkswagen has been producing cars in Bratislava since 1991. It has received incentives from the Slovak government several times already. The support on which the government decided is yet to be approved by the EU.
New cars are up 30 percent cheaper
Some new passenger cars are up to 30 percent cheaper thanks to sales campaigns at the end of the year. Listed prices went down by 10 to 20 percent, according to information from companies. Cars are at the lowest price levels in last 15 years. Prices went down due to stronger crown, strong competition and concerns for economic recession. Experts don’t expect prices to go any lower because margins for dealers are on the borderline of survival. Škoda Auto lowered prices, and also dealers came up with campaign offers. Due to changes in the exchange rate of the Czech crown and euro, some companies list their prices in euros and its current exchange rate. For example Audi and Bayerische Motoren Werke (BMW) set their prices this way. Some brands have different prices for each country, Focus from Ford Motor Company with basic equipment level Ambiente and its weakest engine can be purchased for Kč 416,990 in the Czech Republic, in Germany is Kč 12,000 cheaper, in Austria about Kč 5,000 more expensive and in France costs about Kč 16,000 more; Denmark is highest, at Kč 773,000.
Czech Business Weekly