| It is no secret that the Czech Republic's biggest car | | | | Europe's largest automaker is currently struggling with |
| maker Skoda Auto has been in the past - a laughing | | | | an ageing range of models and it needs new launches |
| stock in the automotive world. But things are finally | | | | to revive it. "The whole new image of Skoda has |
| turning around for the automaker and right now it has | | | | changed. It is no longer taken as a joke and is now |
| become a profit producing force for its owner | | | | seen as a pure derivative of Volkswagen, but much |
| Volkswagen. | | | | more reasonably priced." |
| The Czech Republic's biggest car maker is also | | | | Pope also added that this simply shows the |
| planning to open up new markets in China, India, and | | | | remarkable development that Skoda Auto has |
| Russia. Skoda Auto was bought by Volkswagen in the | | | | achieved under the management of Volkswagen for |
| year 1991 and become one of the forces behind the | | | | the past 15 years as part of the VW Group. Praises |
| latter's global force. And as part of Europe's largest | | | | also to Volkswagen for being steadfast in its decision |
| automaker, Skoda Auto makes use of quality | | | | not to scrap the Skoda brand in spite of the not so |
| Volkswagen auto parts for its production like the | | | | good image that the brand has in Western Europe |
| popular Volkswagen spark plug wires. | | | | (DaimlerChrysler could used some advice from |
| Skoda Auto was able to record net profits for the last | | | | Volkswagen). |
| week of 2006 totaling to 11.06 billion koruna or 392 | | | | The turning of the Skoda into one of Volkswagen's |
| million euros (515 million dollars). It obtained a 40% | | | | flagship producer of reasonably priced reliable cars just |
| increase as compared to its earnings in the previous | | | | goes to show the effective management style that |
| year. | | | | Europe's largest automaker have. And today, |
| Skoda Auto's production also increased by 12.6 | | | | Volkswagen is leading Skoda to become its low-cost |
| percent or 556,347 units with successful deliveries of | | | | spearhead into the booming economies of China, India, |
| up 11.7 percent resulting to an overall sales increase of | | | | and Russia without damaging along the way it |
| 8.7 percent to 203.7 billion koruna. For this year, | | | | attempts to target a more prestige market. |
| Europe's largest automaker Volkswagen owner of | | | | Pope also said that "Skoda will be designated as the |
| Skoda is expecting for it to produce more than | | | | entry level car with the premium part of the market |
| 600,000 cars. | | | | left for Volkswagen." |
| According to Marc-Rene Tonn an analyst from | | | | The boss of Skoda Detlef Wittig has announced last |
| German bank MM Warburg and Co., "Skoda is an | | | | week the company's goal of producing low-cost car |
| extremely profitable part of the Volkswagen Group." | | | | for the Asian market, mentioning also that the |
| He also stressed that about one in every 10 | | | | company plans of opening up markets in India, Russia, |
| Volkswagen Group cars are produced in the Czech | | | | and China. The low-cost Fabia and the |
| Republic especially those sold in the year 2005. This | | | | top-of-the-range Superb are scheduled to be |
| was seconded by Stephen Pope, a London-based | | | | produced for China in partnership with Shanghai |
| analyst with financial services group Cantor Fitzgerald | | | | Volkswagen. Likewise, launches production of the |
| Europe, "Volkswagen will rely heavily on Audi and | | | | mid-range Octavia model are set for China this year. |
| Skoda during this current period." Since he said that the | | | | |