Skoda Auto: The Story of an Ugly Duckling

It is a well-known fact that Skoda Auto, the largest automobile manufacturer in the Czech Republic, existed in the past. It’s a laugh in the automotive industry. However, the situation for automakers has finally improved and is now a profitable force for owner Volkswagen.

The Czech Republic’s largest car maker is also planning to open up new markets in China, India and Russia. Skoda Auto was acquired by Volkswagen in 1991 and has become one of the forces behind Volkswagen’s global forces. And as part of Europe’s largest automaker, Skoda Auto uses high quality Volkswagen auto parts such as the popular Volkswagen Spark Plug Wire for production.

Skoda Auto was able to record a total net profit of CZK 11.06 billion, or € 392 million ($ 515 million) in the last week of 2006. We achieved a 40% increase in revenue compared to the previous year.

Skoda Auto’s production also increased by 12.6% (556,347 units), successfully shipped 11.7%, and overall sales increased by 8.7% to 203.7 billion Koruna. This year, Volkswagen owners of Skoda, Europe’s largest car maker, expect to produce more than 600,000 cars.

Deutsche Bank MM Warburg and Co. “Skoda is a very profitable part of the Volkswagen Group,” said Marc-Rene Tonn, an analyst at Volkswagen. He also emphasized that about one-tenth of the Volkswagen Group’s cars are produced in the Czech Republic, especially those sold in 2005. During this period, it had a great influence on Audi and Skoda. He said Europe’s largest carmaker is currently suffering from aging models and needs a new launch to revive it. “A whole new image of Skoda has changed. It’s no longer considered a joke, it’s considered a pure derivative of Volkswagen, but it’s much more affordable.”

The Pope also added that this simply represents the remarkable development that Skoda Auto has achieved over the last 15 years as part of the VW Group under Volkswagen’s control. Volkswagen also praised the decision not to abandon the Skoda brand, despite the poor image of the brand in Western Europe (DaimlerChrysler was able to take advantage of advice from Volkswagen). ).

Turning Skoda into one of Volkswagen’s affordable and reliable car flagship producers demonstrates the effective management style of Europe’s largest automakers. And today, Volkswagen is leading Skoda to be a low-cost pioneer to the booming economies of China, India and Russia, without damaging the process of targeting higher-end markets. I will.

“The Skoda will be designated as an entry-level car for Volkswagen, with the premium portion of the market left behind,” the Pope said.

Skoda Detlef Wittig’s boss announced last week its goal of producing low-priced vehicles for the Asian market and said it plans to open markets in India, Russia and China. The low-priced Fabia and the finest Superb will be produced for China in partnership with Shanghai Volkswagen. Similarly, the launch of the midrange octavia model is set for China this year.

Czech carmakers already have car assembly and production projects in Ukraine, Russia, Kazakhstan, Bosnia and India. The current models in production include the Midrange Roomster, which completes the current four model ranges, and the Skoda Joyster, a three-door sporty vehicle designed for young buyers. ..