Automotive Database: Škoda Auto

Škoda Auto (Czech pronunciation: ['ʃkoda]), more commonly known as Škoda, is an automobile manufacturer based in the Czech Republic. The car manufacturer was founded in 1895 as Laurin & Klement, it was acquired by Škoda Works in 1925, and became a wholly owned subsidiary of the Volkswagen Group in 2000, positioned as the entry brand to the group. Its total global sales reached 931,696 cars in 2013.

Škoda Auto
Founded	1895 (as Laurin & Klement)
Founder(s)	Václav Laurin and Václav Klement
Headquarters	Mladá Boleslav, Czech Republic
Number of location	Manufacturing facilities in Czech Republic, India, China, Russia and Slovakia. Contract partners in Kazakhstan and Ukraine. (2013)
Area served	Worldwide (except North America)
Key people	Winfried Vahland (Chairman of the Board of Directors) [Christian Klingler] (Chairman of the Supervisory Board)
Parent	Volkswagen Group
Divisions	Škoda Motorsport
Subsidiaries	ŠKODA Auto Deutschland GmbH Skoda Auto India Private Ltd. ŠKODA AUTO Slovensko s.r.o.
Website	skoda-auto.com

History

The Škoda Works were established as an arms manufacturing plant in 1859. Škoda Auto (and its predecessors) is one of the five oldest companies producing cars and has an unbroken history alongside Tatra, Daimler, Opel and Peugeot.

Laurin and Klement, Slavia

The origins of what became Škoda Auto go back to the early 1890s when, like many long-established car manufacturers, a company started manufacturing bicycles. Škoda factories were founded in 1869. In 1894, 26-year-old Václav Klement, who was a bookseller in Mladá Boleslav, Bohemia (today's Czech Republic, then part of Austria-Hungary), was unable to obtain spare parts to repair his German bicycle.

“
If you would like an answer to your inquiry, you should try writing in a language we can understand.
”

—Seidel & Naumann's German reply to Václav Klement's Czech request for spare parts for his bike, prompted him to open his own shop

Klement returned his bicycle to the manufacturers, Seidel and Naumann, with a letter, in Czech, asking them to carry out repairs, only to receive a reply, in German, stating: "If you would like an answer to your inquiry, you should try writing in a language we can understand". Not satisfied with the reply and realising the business potential, Klement, despite having no technical experience, decided to start a bicycle repair shop, which he and Václav Laurin opened in 1895 in Mladá Boleslav. Before going into partnership with Klement, Laurin was an established bicycle manufacturer in the nearby town of Turnov.

Škoda Auto is one of the largest car manufacturers in Central Europe. In 2012, 939,200 cars were sold worldwide, a record for the company

Škoda Auto Museum in Mladá Boleslav

In 1898, after moving to their newly built factory, the pair bought a Werner "Motocyclette". Laurin & Klement's first motorcyclette, powered by an engine mounted on the handlebars driving the front wheels, proved dangerous and unreliable—an early accident on it cost Laurin a front tooth. To design a safer machine with its structure around the engine, the pair wrote to German ignition specialist Robert Bosch for advice on a different electromagnetic system. The pair's new motorcycle made its debut in 1899.

In 1900, with a company workforce of 32, local production began and 150 machines were shipped to London for the Hewtson firm. Shortly afterwards, the press credited them as makers of the first motorcycle. The first model, Voiturette A, was a success and the company was established both within Austria-Hungary and internationally. By 1905 the firm was manufacturing automobiles, making it the second oldest car manufacturer in the Czech lands after Tatra.

Rear of a Škoda Popular Special on display at the Sportauto Museum, Lány, Kladno District, Czech Republic

Škoda

After World War I the Laurin & Klement company began producing trucks, but in 1924, after running into problems and being affected by a fire on their premises, the company sought a new partner.

Meanwhile Akciová společnost, dříve Škodovy závody (Limited Company, formerly the Škoda Works), an arms manufacturer and multi-sector concern which had become one of the largest industrial enterprises in Europe and the largest in Czechoslovakia, started manufacturing cars in cooperation with Hispano-Suiza. Škoda sought to enlarge its non-arms manufacturing base and acquired Laurin & Klement in 1925. Most of the later production took place under Škoda's name.

An assembly line was used for production from 1930 onwards. In the same year a formal spin-off of the car manufacture into a new company, Akciová společnost pro automobilový průmysl or abbreviated ASAP, took place. ASAP remained a wholly owned subsidiary of the Škoda Works and continued to sell cars under the Škoda marque. Apart from the factory in Mladá Boleslav it included also the firm's representation, sales offices and services, as well as a central workshop in Prague. At the time, the car factory in Mladá Boleslav covered an area of 215,000 m2 and employed 3,750 blue-collar and 500 white-collar workers.

After a decline caused by the economic depression, Škoda introduced a new line of cars in the 1930s which significantly differed from its previous products. A new design of chassis with backbone tube and all-around independent suspension was developed under the leadership of chief engineer Vladimír Matouš and modelled on the one first introduced by Hans Ledwinka in Tatra. First used on model Škoda 420 Standard in 1933, it aimed at solving insufficient torsional stiffness of the ladder frame.

The new design of chassis became the basis for models Popular (845-1,089 cc), Rapid (1165–1766 cc), Favorit (1802–2091 cc) and the Superb (2.5–4 l). While in 1933 Škoda had a 14% share of the Czechoslovak car market and occupied third place behind Praga and Tatra, the new line made it a market leader by 1936, with a 39% share in 1938.

During the occupation of Czechoslovakia in World War II the Škoda Works were turned into part of the Reichswerke Hermann Göring serving the German war effort by producing components for military terrain vehicles, military planes, other weapon components and cartridge cases. Vehicle output decreased from 7,052 in 1939 to 683 in 1944, of which only 35 were passenger cars. A total of 316 trucks were produced between January and May 1945. The UK and US air forces bombed the Škoda works repeatedly between 1940 and 1945. The final massive air raid took place on 25 April 1945 and resulted in almost the complete destruction of the Škoda armament works and approximately 1,000 dead and injured.

Post World War II

When, by July 1945, the Mladá Boleslav factory had been reconstructed, production of Škoda's first post-World War II car, the 1101 series began. It was essentially an updated version of the pre-World War II Škoda Popular. In the autumn of 1945, Škoda (along with all other large manufacturers) became part of the communist planned economy, which meant it was separated from the parent company,Škoda Works. In spite of unfavourable political conditions and losing contact with technical development in non-communist countries, Škoda retained a good reputation until the 1960s, producing models such as the Škoda 440 Spartak, 445 Octavia, Felicia and Škoda 1000 MB.

In late 1959, the Škoda Felicia, a compact four-cylinder convertible coupe, was imported into the United States for model year 1960. Its retail price was around US$2,700, for which one could purchase a nicely-equipped V8 domestic car that was larger, more comfortable, and had more luxury and convenience features (gasoline retailed for less than 30 cents per gallon, so fuel economy was not of primary importance in America at that time). Those Felicias that made it to American ownership soon experienced a number of reliability problems, further damaging the car's reputation. The Felicia was therefore a poor seller in the States and leftover cars ended up being hied off at a fraction of the original retail list. Since that time, Škoda automobiles have not been imported into the U.S. for retail sale.

In the late 1980s, Škoda (then named Automobilové závody, národní podnik or abbreviated AZNP) was still manufacturing cars that conceptually dated back to the 1960s. Rear engined models such as the Škoda 105/120, Estelle and Rapid sold steadily and performed well against more modern makes in races such as the RAC Rally in the 1970s and 1980s. They won their class in the RAC rally for 17 years running. They were powered by a 130 brake horsepower (97 kW), 1,289 cubic centimetres (78.7 cu in) engine. In spite of its dated image and becoming the subject of negative jokes, Škodas remained a common sight on the roads of UK and Western Europe throughout the 1970s and 1980s.

Sport versions of the Estelle and earlier models were produced, using the name "Rapid". Soft-top versions were also available. The Rapid was once described as the "poor man's Porsche", and had significant sales success in the UK during the 1980s.

"Of course, that the Škoda became such a figure of fun was in part due to its ubiquity on Britain's roads. The company must have been doing something right." (from a BBC report on Škoda sales in 1980s)

In 1987 the Favorit was introduced, and was one of a triumvirate of compact Western-influenced front-wheel drive hatchbacks from the three main Eastern Bloc manufacturers around that time, the others being VAZ's Lada Samara and Zastava's Yugo Sana. The Favorit's appearance was the work of the Italian design company Bertone. With some motor technology licensed from western Europe, but still using the Škoda-designed 1289 cc engine, Škoda engineers designed a car comparable to western production. The technological gap was still there, but began closing rapidly. The Favorit was very popular in Czechoslovakia and other Eastern Bloc countries. It also sold well in Western Europe, especially in the UK and Denmark due to its low price and was regarded as solid and reliable. However, it was perceived as having poor value compared with contemporary Western European designs. The Favorit's trim levels were improved and it continued to be sold until the introduction of the Felicia in 1994.

Volkswagen Group subsidiary

The fall of communism with the Velvet Revolution brought great changes to Czechoslovakia and most industries were subject to privatisation. In the case of Škoda Automobile, the state authorities brought in a strong foreign partner. Volkswagen was chosen by the Czech government on December 9, 1990, and, as a result, on March 28, 1991 a joint-venture partnership agreement with Volkswagen took place, marked by the transfer of a 30% share to the Volkswagen Group on April 16, 1991. By this stage, Skoda was still making its outdated range of rear engine saloons, although it had started production of the Favorit front-wheel drive hatchback in 1988 as an eventual replacement.

In the following years, Škoda became the fourth brand of the German group, as the Volkswagen Group raised its equity share first on December 19, 1994, to 60.3%, followed on December 11, 1995, to 70%.

In the competition for Škoda, Volkswagen was pitted against French car-maker Renault, which lost out because its strategic plan did not include producing high-value models in the Czech factories: Renault proposed to manufacture the Renault Twingo city car in the Škoda factories.

At the time the decision was made, privatisation to a major German company was somewhat controversial. However, it could be argued that the subsequent fortunes of other Eastern-Bloc automobile manufacturers such as Lada, AutoVAZ, and of Škoda Works itself – once Škoda Auto's parent company – suggested that Volkswagen's involvement was not necessarily a result of poor judgement.

Backed by Volkswagen Group expertise and investments, the design — both style and engineering — has improved greatly. The 1994 model Felicia was effectively a reskin of the Favorit, but quality and equipment improvements helped, and in the Czech Republic the car was perceived as good value for money and became popular. Sales improved across Europe, including the United Kingdom, where the Felicia was one of the best-ranking cars in customer satisfaction surveys.

Volkswagen AG chairman Ferdinand Piëch personally chose Dirk van Braeckel as head of design, and the subsequent Octavia and Fabia models made their way to the demanding European Unionmarkets. They are built on common Volkswagen Group floorpans. The Fabia, launched at the end of 1999, formed the basis for the later versions of the Volkswagen Polo and SEAT Ibiza, while the Octavia, launched in 1996, has shared its floorpan with a host of cars, the most popular of which is the Volkswagen Golf.

The perception of Škoda in Western Europe has changed completely since the takeover by VW, in stark comparison with the reputation of the cars throughout the 1980s—often described as "the laughing stock" of the automotive world. As technical development progressed and attractive new models were marketed, Škoda's image was initially slow to improve. In the UK, a major turnabout was achieved with the ironic "It is a Škoda, honest" campaign, which was started in 2000 when the Fabia was launched. In a 2003 advertisement on British television, a new employee on the production line is fitting Škoda badges on the car bonnets. When some attractive looking cars come along he stands back, not fitting the badge, since they look so good they cannot be Škodas. This market campaign worked by confronting Škoda's image problem head-on—a tactic which marketing professionals regarded as high risk. Before the advertising campaign, it was common to hear tour guides in Bratislava making jokes about Škoda, saying "How do you double the value of a Škoda? Fill up the petrol tank!" By 2005 Škoda was selling over 30,000 cars a year in the UK, a market share of over 1%. For the first time in its UK history, a waiting list developed for deliveries by Škoda. UK owners have consistently ranked the brand at or near the top of customer satisfaction surveys since the late 1990s. In contrast, the Lada and FSO cars it once competed against were withdrawn from the UK market by the end of the 1990s, due to falling sales and stricter emissions regulations, not to mention the failure to develop newer and better designs, while the Yugo-badged Zastava models were withdrawn from the British market in the early part of the decade as a result of sanctions imposed on the then Yugoslavia during its civil war. Dacia, the Romanian carmaker having been brought and developed by Renault also fared well.

Growth strategy

2010 was a year of important changes for Škoda Auto, in terms of both products and management. On 1 September 2010, Prof. Dr. h.c. Winfried Vahland assumed responsibility for the management of the company, becoming the CEO of Škoda Auto. Under Vahland's leadership, Škoda set forth plans to double the company’s annual sales to at least 1.5 million by 2018 (later known as the ‘Growth Strategy’, Czech: ‘Růstová Strategie’).

At the 2010 Paris Motor Show in September 2010, the company unveiled the Octavia Green E Line. This e-car concept was the forerunner to the e-car test fleet that Škoda released in 2012. The final 1st-generation Octavia (Tour) was produced at the Mladá Boleslav plant in November 2010. The worldwide production of this model exceeded 1.4 million units since its release in 1996. In 2010 for the first time in history, China overtook German sales to become Škoda's largest individual market.

In 2011, Škoda Auto celebrated its 20-year partnership with the Volkswagen Group. More than 75,000 visitors attended an open-house event held in Mladá Boleslav in the April. Earlier that year, the company provided details on its 2018 Growth Strategy: for at least one new or completely revised model to be released every six months. With this in mind, the company redesigned its logo and CI, which was presented at the 2011 Geneva Motor Show. Škoda’s main attraction at the event was the VisionD design concept; a forerunner to the future 3rd generation Octavia. Škoda presented the MissionL design study at the IAA in Frankfurt am Main in September, which was to become the basis of the company’s forthcoming compact model the European Rapid.

In the same year, the company started production of the new Rapid model in Pune, India (October 2011), and launched the Citigo at Volkswagen's Bratislava plant (November 2011).

During 2012 Škoda was preparing the introduction of two volume models. The European version of the Rapid premiered at the Paris Motor Show. This car was a successor to the 1st-generation Octavia in terms of its price bracket. The second volume model was the 3rd-generation Octavia, which premiered In December 2012. In the same month, the local production of the Yeti was launched at the Nizhny Novgorod GAZ factory.

In 2012 Škoda introduced an emission-free fleet of Octavia Green E Line e-cars on Czech roads to be used by external partners. Since internal tests on the fleet in late 2011, the e-fleet had driven more than 250,000 km. During the same year, Škoda celebrated several milestones, including fourteen million Škoda cars being produced since 1905 (January), three million Fabias (May), 500,000 Superbs at the Kvasiny plant (June ) and 5 years of Škoda operations in China.

Massive rejuvenation of the model range was a major tune for 2013 at Škoda: The Czech carmaker launched the third-generation Octavia Combi and Octavia RS (both liftback and estate) as well as facelifted Superb and Superb Combi. They were accompanied by brand new members of the Rapid family as the Rapid Spaceback, the first Škoda hatchback car in the compact segment, and the Chinese version of the Rapid. Also the Yeti faced significant changes. With the facelift, two design variants of Škoda 's compact SUV are now available: city-like Yeti and rugged Yeti Outdoor. Moreover, Chinese customers were given the Yeti with prolonged chassis.

Financial Results

ŠKODA has maintained sound financial stability over recent years. In 2013 the brand achieved sales revenues totalling €10.3 billion (2012: €10.4 billion). Due to the weak economic situation in many European countries and the expansion of the ŠKODA model range, operating profit reached a modest 522 million euros (2012: €712 million). ŠKODA achieved a successful start to 2014: As well as recording the highest number of deliveries to customers in a first quarter ever (247,200; up 12.1%), ŠKODA recorded a significant increase in sales revenue (23.7%) to almost 3 billion euros. Operating profit increased 65.2% to 185 million Euros over the previous year.

Sales figures

Model	Škoda Felicia	Škoda Octavia	Škoda Fabia	Škoda Superb	Škoda Roomster	Škoda Yeti	Škoda Rapid	Škoda Citigo	Total
1991	172,000	−	−	−	−	−	−	−	172,000
1995	210,000	−	−	−	−	−	−	−	210,000
1996			−	−	−	−	−	−	261,000
1997	288,458	47,876	−	−	−	−	−	−	336,334
1998	261,127	102,373	−	−	−	−	−	−	363,500
1999	241,256	143,251	823	−	−	−	−	−	385,330
2000	148,500	158,503	128,872	−	−	−	−	−	435,403
2001	44,963	164,134	250,978	177	−	−	−	−	460,252
2002	−	164,017	264,641	16,867	−	−	−	−	445,525
2003	−	165,635	260,988	23,135	−	−	−	−	449,758
2004	−	181,683	247,600	22,392	−	−	−	−	451,675
2005	−	233,322	236,698	22,091	−	−	−	−	492,111
2006	−	270,274	243,982	20,989	14,422	−	−	−	549,667
2007	−	309,951	232,890	20,530	66,661	−	−	−	630,032
2008	−	344,857	246,561	25,645	57,467	−	−	−	674,530
2009	−	317,335	264,173	44,548	47,152	11,018	−	−	684,226
2010	−	349,746	229,045	98,873	32,332	52,604	−	−	762,600
2011	−	387,200	266,800	116,700	36,000	70,300	1,700	509	879,200
2012	−	409,360	255,025	106,847	39,249	90,952	9,292	36,687	949,412
2013	−	359,600	202,000	94,400	33,300	82,400	103,800	45,200	920,800
2014	−	389,300	160,500	91,100	29,600	102,900	221,400	42,500	1,037,200

Production

ŠKODA cars are produced in the Czech Republic, China, Russia, India and Slovakia at ŠKODA’s own production facilities or through partnerships within the Volkswagen Group. ŠKODA models are additionally manufactured in Ukraine and Kazakhstan through local partners.

Czech Republic

ŠKODA has three production sites in the Czech Republic. Mladá Boleslav is the carmaker's base with a tradition of industrial production dating back to 1895. Mladá Boleslav is not only home to the brand's headquarters and R&D department, but is also the location of ŠKODA's largest production facility in the world. ŠKODA also produces engines (e.g. EA 211: 1.2 TSI, 1.4 TSI and EA 111: 1.2 MPI, 1.2 TSI) and gearboxes (MQ 100 and MQ 200 manual gearboxes, SQ 100 piloted gearbox) in Mladá Boleslav for use both in ŠKODA models, and also for other brands within the Volkswagen Group. At the company’s Kvasiny plant, ŠKODA builds the Yeti, Superb and Roomster models, while the Vrchlabí plant is dedicated to the production of the 7-gear direct-shift gearbox (DSG).

India

In 2001, India became the first non-European country where ŠKODA produces cars. The first car assembled in the country was the Octavia at the ŠKODA plant in Aurangabad. The Superb followed in 2004, the Fabia in 2008 and the Yeti in 2010. The Volkswagen Group plant in Pune began manufacturing the Rapid in 2011. Production of the Fabia in India was paused in 2013.

China

In China, ŠKODA cars have been built in cooperation with Shanghai Volkswagen (SVW) since 2007. Initially three models were produced, but nowadays six models – the Fabia, Rapid, Rapid Spaceback, Octavia, Yeti and Superb – roll off the SVW production lines in Anting, Yizheng and Ningbo.

The first ŠKODA model produced in China was the Octavia in 2007. It was followed by the Fabia in 2008, and the Superb in 2009. Production of the Rapid was launched in China at the end of 2012. The ŠKODA Yeti was launched in China in 2013, first as an export model, and later as a locally produced vehicle. The production of the Rapid Spaceback began in spring 2014. Since ŠKODA entered the Chinese market, more than one million ŠKODAs have been produced at SVW plants.

Russia

In Russia ŠKODA cars are produced at the production facilities in Kaluga and Nizhny Novgorod. The first locally assembled model was the Octavia in November 2007. The production of Fabia began in 2008 at the Volkswagen Group Russia (VGR) plant in Kaluga, where the Superb is also produced. The Rapid followed at the beginning of 2014. In partnership with VGR and the Russian automobile manufacturer GAZ, the production of the Yeti in Nizhny Novgorod began in 2011, and the new Octavia has also been manufactured at this plant since 2013.

Slovakia

The city car ŠKODA Citigo has been produced at the Volkswagen Group’s Bratislava plant since 2011.

ŠKODA cars – Production statistics

ŠKODA cars produced worldwide	2007	2008	2009	2010	2011	2012	2013
Citigo	−	−	−	−	1,027	36,687	42,971
Fabia	243,669	244,722	258,951	236,973	261,107	231,930	196,732
Roomster	75,875	49,535	42,315	30,473	36,427	39,249	31,425
Rapid	−	−	−	−	2,561	32,440	123,634
Octavia	320,592	338,380	284,965	347,129	402,462	406,397	356,286
Superb	21,339	27,264	45,521	105,694	119,732	106,847	96,261
Yeti	−	−	19,672	52,550	77,312	90,882	90,882
Total	661,475	659,901	651,424	772,819	900,628	944,432	931,969

Motorsport

Fabia WRC at the 2004 Rally Finland

Fabia S2000 (2009)

Main article: Škoda Motorsport

World Rally Championship

Following a long history of class victories in lower levels of motorsport, Škoda became a participant in the FIA World Rally Championship in the 1999 season, with World Rally Car models of the Škoda Octavia. Škoda's best result with the Octavia WRC was Armin Schwarz's third place at the 2001 Safari Rally. From mid 2003, the Octavia was replaced by the smaller Škoda Fabia. Škoda used the 2004 season to develop the car further, but did not achieve much success the following season. However, at the season-ending Rally Australia, 1995 world champion Colin McRae was running second before retiring. Škoda then withdrew from the series, and the 2006 season saw Škoda represented by the semi-privateer Red Bull Škoda Team. Jan Kopecký drove the Fabia WRC to fifth place at the Rally Catalunya, and as late as the 2007 Rallye Deutschland the Fabia still achieved a fifth place result, again in the hands of Kopecký. Former works Ford and Citroen driver François Duval also drove a Fabia WRC in 2006 for the privateer First Motorsport team, achieving a sixth place on Rally Catalunya.

Super 2000

In 2009, Škoda entered the Intercontinental Rally Challenge (IRC) for the first time, using the Fabia S2000, winning three rallies and finishing second in both the drivers and manufacturers championship. In 2010, Škoda's won a total of seven IRC events winning both the manufacturers and driver championship for Juho Hänninen. These achievements were repeated in the following two seasons, with Andreas Mikkelsen as the drivers' champion. In 2013, the Intercontinental Rally Challenge was merged with the European Rally Championship (ERC) and the team gained the drivers' championship title once again for Jan Kopecký. The car was also raced by privateers in several championships, including Red Bull, Barwa, Rene Georges and Rufa in the 2010 Super 2000 World Rally Championship.

Bonneville Speedway

In August 2011, a special Škoda Octavia vRS set the world record at the Bonneville Speedway and became the fastest car in the world with an up to two-litre engine, when it hit 227 mph (365 km/h). The current fastest production Škoda car is the Škoda Superb 3.6 FSI 4x4, with a top speed of 250 km/h (160 mph) and acceleration from 0 to 100 km/h (0 to 62 mph) in 6.5 seconds.

List of Škoda car models

Category	Models
Current models	Cars	Citigo, Fabia, Rapid (India), Rapid (Europe), Octavia, Superb, Roomster, Praktik,
	Crossovers/SUVs	Yeti
Historic models	Laurin & Klement, 105/120/125, S100/110, 110R Coupé, 130/135/136, 440/445, Popular, Favorit, Felicia, Garde, 1202, 1203/1500, 1000/1100 MB, Octavia (1959–1971), Rapid (1935–1947), Rapid (1984), Superb (1934-1949 ), Škoda Felicia (1959-1964), VOS
Concept models	Mission L (2011), Vision D (2011), Fabia Super (2007), Škoda Joyster (2006), Yeti II (2006), Roomster (2003), Tudor (2002), Fabia Paris Edition (2002), Ahoj (2002), Felicia Golden Prague (1998), 783 Favorit Coupé (1987), Škoda 110 Super Sport Ferat (1971), Škoda 1100 GT (1968), Škoda 720 (1967-1972), Škoda F3 (1964), Škoda 110 Type 968 (1958), Škoda 973 Babeta (1949)
Race cars	Škoda Fabia S2000 Škoda Motorsport