Skoda Auto has announced that it is to produce a new vehicle for its German parent company Volkswagen at the Kvasiny plant in the Czech Republic, which already makes the Superb, Yeti and Roomster models. It is expected that hundreds of jobs will be created as a result.

Skoda has not given the name or specific details of the new model, and it has not revealed the size of the investment to expand production in the plant. However, it has previously said that it was considering making a new mid-size sport-utility vehicle. VW chairman Martin Winterkorn said: “Skoda is — and will remain — an important strategic spearhead for the Volkswagen group.”

Skoda CEO Winfried Vahland said that the decision to produce a new vehicle at Kvasiny will ensure the long-term prosperity of the plant, as well as factories in Mlada Boleslav and Vrchlabi. Skoda produces or assembles cars in China, Russia, India and Ukraine. It employs 25,000 in the Czech Republic and is the country’s largest exporter.