The German car group has been due to decide on whether to produce a new sport-utility vehicle (SUV) for its mass-market brands Skoda and Seat at a plant in the Czech Republic or Spain.

Skoda did not specify the model to be made at the Kvasiny plant in eastern Czech Republic.

The investment is expected to create several thousands of jobs at Skoda, the country's biggest exporter, and its suppliers.

(Reporting by Jason Hovet, editing by Jan Lopatka)