Skoda to produce first generation Octavia again

Launched back in 1998, the first generation of the Skoda Octavia will come back into production as a discount model to provide value for money to such rivals as Kia, Hyundai and Dacia.

Although details have been kept under wraps, the newcomer is set to go on sale in 2010 with a price tag of £10,000 and it will be well equipped with front electric windows, electrically adjustable/heated door mirrors and air-conditioning.

Skoda has described the car as a "world car" and will be available across Europe as emerging car markets such as China. It is possible that the first models will use an upgraded version of the VW Group’s 1.9-litre diesel and its 2.0-litre petrol engines, however, smaller, more economical engines may also be offered at a later date.

The newbie is likely to share some of its design and engineering with the recently confirmed SEAT Bolero which is based on the last Audi A4 platform.