BARCELONA, MLADA BOLESLAV – In two years, Czech carmaker Skoda will start to manufacture another Seat model. After the Toledo liftback, Skoda will produce a mid-size SUV from Seat, the Spanish carmaker's CEO Jurgen Stackmann told Bloomberg. Both Skoda and Seat are subsidiaries of Germany's Volkswagen.

Seat hopes that its new SUV, which will be manufactured at the Czech Republic's Kvasiny plant, will help it get back in the green. “Kvasiny's capacity was available and we are glad we can use it. It is a very cost-effective plant,” said Stackmann. Seat has not generated profit since 2007, but its sales increased by 11 percent in 2013, reported Bloomberg.

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Skoda spokesman Jozef Balaz confirmed the report to Aktualne.cz. “Yes, it has been decided. Of course we are glad, because we have been struggling to win this project for a long time. The Kvasiny plant, in which we have invested a lot of money in the past years, will be ready in time,” said Balaz.

Aktualne.cz has learned that Kvasiny will manufacture a mid-sized SUV equipped with the MQB platform, which is found for example in the Volkswagen Golf, Skoda Octavia, or Seat Leon models. The production is expected to start in 2016 and the new model will use many components used by Yeti, Skoda's only SUV model so far.

Skoda plans to develop another, larger SUV model for customers in Russia and China.

It is a commonplace in Volkswagen that models are not manufactured in the home countries of the respective brands. For example, Volkswagen's plant in the Slovak capital of Bratislava manufactures Skoda's Citigo, Volkswagen Up, and Seat Mii, and a Volkswagen facility in Poland will manufacture the second generation Skoda Roomster.

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