Production of Škoda’s fifth model line is due to start in 2009 and many new jobs will be provided in the firm’s home country following the announcement. The Kvasiny facility, along with Škoda’s other plant in Vrchlabí, will be extensively modernised and expanded in order to meet the board’s aim of having three full-scale Czech factories by 2010.

Mladá Boleslav, the car maker’s main plant and headquarters, will continue to produce the Fabia and Octavia. However, the Volkswagen plant in Bratislava will help to satisfy the high demand for vehicles by increasing its production of the Octavia.

Detlef Wittig, chairman of Škoda’s board of directors, said: “Thanks to the growing demand for the Octavia we are looking for suitable manufacturing capacities elsewhere that will enable us to quickly react to the enormous interest shown by customers in our model range.“

Skoda cars will be released in Australia later this month, when the Roomster and Octavia herald the return of the brand to the local market following an absence of several decades.

The "Next Car" team expect that the Yeti will join the Roomster and Octavia in Australia, in due course.