Skoda

Ownership And Brief History
Skoda Auto was initially established in 1894 in the Czech Republic. However, in 1990, under a privatization program the Czech government selected Volkswagen and in 1991, Skoda became the forth brand in the Volkswagen Group.

Under the communist government, Skoda became part of the Czech Republic’s planned economy, which had the unfortunate effect of cutting the company off from technological developments.

By the 1980s the company was still producing cars that were conceptually and technically dated back to the 1960s, even though they were very hardy and reliable. This hardiness and reliability has given Skoda a good international reputation, such that Skoda’s could be found on many Western Europe roads in the 1980s.

In 1987, with from Italian automobile design company Bertone, Skoda upgraded their Favorit model, which was an instant hit in Western and Eastern Europe, where Skoda was still perceived as being reliable and good value for money.

Giant Leap Forward
With the aid of the new parent company, Volkswagen, Skoda India improved the car’s design and engineering, allowing the company to release new attractive models into the market. However Skoda’s poor image remained. In 2000, a series of aggressive marketing campaigns were launched to tackle Skoda’s poor image head on. They succeeded in re-positioning Skoda as a luxury car.

The marketing campaign was so successful, that for the first time in the car’s UK history a waiting list developed for Skoda deliveries. By 2005, the automobile manufacturer was selling over 30,000 cars in the UK alone, having captured a market share of over 1%. UK customers, like their Indian counterparts are so pleased with Skoda, that during the 2000s they have consistently raked the brand near, if not at the top of the J.D. Power Customer satisfaction survey.

Skoda Auto revenues for the year 2007 were reported to be €8.5 billion. In 2008, the company reported increased profits of $990 million. Skoda Auto now has cars throughout the world expect for North America.

They have manufacturing plants in Sarajevo, Bosnia and Herzegovina. In India they are present as Skoda Auto India; Ukraine, Kazakhstan, Russia and China. The most Skoda cars are produced in Solomonovo Ukraine and Aurangabad, producing 12,599 vehicles in 2006.

To stamp their authority on the international automobile market, Skoda has entered various motoring events that have succeeded in raising their brand profile. The 2003 Skoda was third in the Octiva WRC. In 2006 and 2007, the Skoda Fabia WRC came fifth.