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Skoda, the new driving force behind VW profits

Long gone are the days when Skoda was the thefavoured target of all the cruellest
target of cruel jokes in themotoring jokes in the motoring industry where
industry. Sokda is now rapidly catching itused to be called a skip on wheels
up with Audi in increasingthe profits for etc. Preset day analysts predict a
VW which incorporated Skoda almost verybright future for Skoda and admire
fifteen years from now. Skoda cars the VW efforts and the decision to stick
wereonce considered so dangerous to drive itthrough hard times for Skoda and give
that the VW executives refuse to it an image where it is no
commutein them but all that has now longerconsidered a low class name.
changed and Skoda have come down a path The Geneva Car Show in March, 2007 will
of steadyimprovements in their models. see the launch of the new generation
The VWs Skoda venture had been written Skoda Fabia Roomster Multipurpose vehicle
off by many analysts in the and with a 5.5% increase in demand
motoringindustry citing the forthis model plus a 45% increase in car
un-predictable future of the Czech state. sales due to manufacturing in China and
At the time of theinitial VW involvement India, Skoda is well on its way to
with Skoda, the new government after the improving the market share price for
velvetrevolution had started selling off itsparent company VW. The main reason for
state assets and Skoda only had one the popularity of Skoda models is
model,the Skoda Favorit in production at thoughtto be due to the consumer wanting
the time. Skoda executives were told by a similar feel as one would get driving
VW toeither go back to the drawing board an
and design a brand new car or its the Audi or a VW but at the fraction of the
endof the line for Skoda. Mr. Detlef cost. Skoda seems to fulfil this
Wittig, a VW executive at the time of the desirenicely and the quality of the
VWtakeover of Skoda and who now runs latest generation models seems to improve
Skoda, jokes about how Skoda used to be withevery new model launched.




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