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The Skoda Kodiaq large SUV will have its premiere in September (Photo: Skoda)

Skoda set up a new business unit charged with developing new technologies and said digitization is a "key action point" coming out of the Volkswagen Group's new strategic plan.

The Czech volume brand, one of the more profitable divisions of the VW Group, said its digitization business area will develop new products and mobility services and will boost the company's readiness for digital transformation.

“For decades, innovations in digital technology have been setting the pace in many areas of our lives and our industry,” Skoda CEO Bernhard Maier said in a statement. "By utilizing innovative technologies we will make our customers’ lives on the road easier, more effective and more interesting.”

Most carmakers, including the VW Group, have been appointing senior executives to coordinate digitization efforts across the company. At VW, former Apple executive Johann Jungwirth started as head of the group's digitization efforts November 1. He reports directly to CEO Matthias Mueller.

VW last week unveiled a comprehensive strategic plan that embraces electric vehicles, new mobility and big investments in future technologies.

Skoda said it is setting up a cross-functional business unit that will involve all areas of the company. These areas range from workforce training and education to the use of virtual reality and 3D technologies in vehicle development to car production with so-called Industry 4.0 techniques.

Separately, Skoda this month unveiled a sketch of an SUV - the Kodiaq - that it hopes will expand its model range into a new market segment.