| As demand for the new Fabia small car and | | | | are doing well which is a good sign of reassurance for |
| Roomster all-purpose vehicle booms, Skoda Auto AS, | | | | the future 40% Profit Growth and the targeted sales. |
| Volkswagen AG's Czech unit, increased its full-year | | | | As the Roomster attracted buyers and attained |
| sales forecast. | | | | improved productivity, the Czech division's 2006 profit |
| Chief Executive Officer Detlef Wittig said in an | | | | rushed 40 per cent to a record of 11.1 billion koruna |
| interview at Skoda's Mlada Boleslav, Czech Republic, | | | | ($520 million). |
| headquarters in June 25 that Skoda estimates | | | | With 203.7 billion koruna, sales climbed 8.7 per cent. For |
| deliveries will increase almost 13 percent with 620,000 | | | | 2007, Wittig said that Skoda is investing a total 350 |
| vehicles from 549,667 units in 2006. | | | | million euros ($471 million) with most of the money |
| In February, Wittig forecasted a 9.1 percent increase to | | | | allotted for the expansion of production capacity at the |
| 600,000 vehicles. The CEO said the carmaker's | | | | three existing Czech plants. |
| six-month sales have earned additional 15 per cent | | | | Skoda has no plans of adding a factory in the country, |
| from a year earlier to 310,000 vehicles, while revenue | | | | where it is facing a tight labor market. The CEO |
| also increased by between 7 per cent and 8 per cent. | | | | continued that Czech labor market would not give |
| Because Skoda has cut production and material costs, | | | | them the opportunity to build the fourth plant. |
| profit growth will be a little higher than the sales | | | | The governemnet said in June 8 that the country’s |
| increase. And as the division extends its production | | | | unemployment rate in May dropped 6.4 per cent – |
| worldwide, Wittig has a medium-term global target of | | | | the lowest since at least 2004, when the Czech |
| increasing Skoda's sales 45 per cent to 800,000 | | | | Republic joined the European Union. |
| vehicles a year. | | | | Also facing competition for workers is competing for |
| Volkswagen's second most- profitable unit after the | | | | Workers Skoda as other carmakers, such as the joint |
| Audi luxury brand, Skoda plans to increase 2007 sales | | | | venture between Toyota Motor Corp and PSA |
| with a new version of its best-selling Fabia model, | | | | Peugeot Citroen, broadens in the country. So in order |
| which came to market in March, and the Roomster, | | | | to help operate its Czech plants, Skoda has had to hire |
| introduced last year. | | | | foreign workers. |
| Located 60 kilometers (37 miles) northeast of Prague, | | | | Every year, Wittig has set a goal of introducing a new |
| the unit holds a crucial role in the fortunes of its | | | | model including a new sport-utility vehicle called the |
| Wolfsburg, Germany-based parent company, which is | | | | Yeti scheduled to come in the showrooms in 2009. |
| Europe's biggest carmaker, as well as its homeland. | | | | Wittig said Skoda plans to bring a Fabia Combi in 2008 |
| Skoda targets to sell 100,000 new Fabias and 70,000 | | | | into the market. It will be made at the main plant in |
| Roomsters in this year. | | | | Mlada Boleslav. |
| Wittig assured that the new Fabia and the Roomster | | | | |