The Czech Republic will be in the first group that join the European Union

Chancellor Schroeder

The Chancellor, who is using the tour to boost support for EU expansion, said the Czech authorities had placed themselves in pole position for membership.

"The Czech Republic will be in the first group that join the European Union," he said.

"The republic has made good progress in the negotiations. It is good to do as much as possible to prepare its industry in the pre-entry phase."

No more jokes

The Skoda plant, now owned by Volkswagen, is seen as one of the most successful examples of German investment in a former communist country.

When Volkswagen took over the Skoda factory in 1991, the cars made there were the butt of countless jokes in the West, a byword for unreliability and ugly design.

Since then, the company has been transformed. In the first six months of this year, worldwide sales have risen by 17%.

Mr Schroeder was also due to meet Czech Prime Minister Milos Zeman.

Czechs resent German interference over Temelin

Contentious issues thought to be on the agenda include the controversial Temelin nuclear plant.

Mr Zeman was earlier reported to be angry over German criticism of the plant, regarding it as meddling in their internal energy policies.

The issue free movement of labour after EU expansion could also prove tricky.

Mr Schroeder wants citizens of new EU member states to be denied the right to seek work in other parts of the union for seven years after expansion takes place. The Czechs say that is unacceptable.