The 20th anniversary of one of the most successful associations in the history of the automobile is celebrated this week: On April 16th, it will be 20 years since the beginning of the cooperation of the Czech automobile manufacturer Skoda Auto with Europe's largest automobile group Volkswagen.The entry of Volkswagen is linked with the rapid rise of the brand with the winged arrow as an internationally successful manufacturer. Since 1991, Skoda has quadrupled its worldwide sales under the group umbrella of Volkswagen and has expanded its vehicle range from one product in 1991 to currently five model series.
In the coming years, the manufacturer wants to continue boosting the growth course and increase sales to at least 1.5 million units per year in 2018. In order to achieve this, Skoda invests massively in new products and new markets, particularly in the countries of China, India, and Russia. At the same time, the company wants to continue to strengthen its strong position in the Czech and European markets.
"Together, Skoda and Volkswagen have written a chapter of economic history. Back then, 20 years ago, few people believed in such a brilliant development of this brand. And at the time, hardly anybody thought it possible for Czechs and Germans to work together so well and in such a cooperative manner," said the Volkswagen CEO and Chairman of the Supervisory Board of Skoda, Prof. Dr. Martin Winterkorn.
"The development of Skoda since Volkswagen's commitment has been unique in the automobile industry," emphasizes Skoda's Chairman of the Board, Prof. Dr. h.c. Winfried Vahland. "It was nothing less than the rebirth of a legendary automobile brand located in the heart of Europe. Under the umbrella of the Volkswagen Group, the brand was given new life and started a successful comeback.
It was an extremely farsighted decision by the Volkswagen Group as well as the economically and politically responsible movers of the Czech Republic at the time to give this German-Czech alliance a chance. The company has utilized this opportunity in a remarkable fashion and wants to increase its performance even further in the next years," said Vahland. In this context, Vahland also thanked the Supervisory Board of Skoda led by the Volkswagen CEO Prof. Dr. Martin Winterkorn for its energetic support.
The rapid rise of the company is impressively illustrated by the development of the model range. Whereas Skoda built only one model - the Favorit - in 1991, the manufacturer stands for a whole range of modern vehicles today. Whether it is the Fabia, the Octavia, the Roomster, the Yeti, or the Superb - when it comes to spaciousness, comfort, and the price/value ratio, the vehicles made in the Czech Republic are setting standards in their respective segments. They jump from sales record to sales record: In 2010, for the first time ever, more than three quarters of a million customers bought a Skoda with the claim: "Simply Clever".
Prof. Dr. Martin Winterkorn: "The Skoda brand stands for driving pleasure, technology, and quality in a first-rate price/performance ratio. That is the core of "Simply Clever". And with this positioning, Skoda is a strategic spearhead for our Group."
The international presence of the company has also developed in an exceedingly successful fashion in the past years. At the start of the nineties, the Czech brand was still focused on its domestic market and European countries. Today, Skoda has long been established in markets beyond Europe and sells its products in more than 100 countries. This effort was accompanied by a push into uncharted territories during the last ten years: In 2001, production was launched in India. And since 2007, the company has enjoyed a very successful presence in China. That country has become its strongest foreign market by now and contributed about a quarter of the brand's sales in 2010.
Skoda also values the commitment of its 25,000 employees worldwide as well as the employee representatives as an essential guarantor of the rise of the brand. Prof. Vahland: "In the last two decades, our team has given an extraordinary performance. It has actively and with great dedication supported the necessary changes and shaped them. I salute our employees and the employee representatives and thank them for their outstanding and responsible commitment. With his or her performance, everyone contributes to the success of the company."
On the basis of the successes of the last 20 years, the manufacturer is taking aim at new goals now: "Within the framework of the Skoda Growth Strategy, we want to at least double our sales in the next years and sell at least 1.5 million vehicles worldwide in 2018," explains Winfried Vahland. The core of the growth plans is an even greater internationalization of the company. In the future, the manufacturer wants to achieve more than half of its sales outside of Europe. Particularly in the growth markets of China, India, and Russia, Skoda wants to make significant gains. To achieve this, the model range is to be greatly expanded in the next years. "We will set standards for spacious vehicles with the best price/value ratio and clever ideas in the important markets of the world," Vahland emphasizes.
Furthermore, the manufacturer plans to clearly strengthen its local commitment in the important markets. Thus, the compact SUV Yeti will also be produced in China beginning in 2013. "We want to clearly increase our activities in China und in other growth markets," said the head of Skoda. He emphasized that in doing so the European market will remain unchanged for the company: "Europe and the Czech Republic remain our home base. With a successful development in the international growth markets, we also strengthen our good position at home."
Skoda & Volkswagen: Highlights of 20 Year Old Success Story:
1990/1991
Following the political change, Skoda begins searching for a strong western partner. Besides Volkswagen, GM, BMW, and Renault are making a pitch. The primary interest of the foreign manufacturers is aimed at the front wheel drive technology of the Skoda model Favorit.
In December 1990, the Czech government awards the Volkswagen Group with the deal. On April 16th, 1991, the agreement takes effect. A new era begins for the company.
1994
The Favorit is replaced with the new model Felicia. With regard to quality and styling, the vehicle meets international standards.
1995
In mid-February, the foundation stone for the production facility for the new middle class model Octavia is laid in Mlada Boleslav. A new hall for the paint shop is built as well. The factory in the Northern Bohemian town of Vrchlabí is modernized. The investments by the Volkswagen Group in these and other measures correspond to 20 percent of all the foreign investments in the Czech Republic.
1996
At the end of April, the one-millionth Skoda vehicle since the entry of Volkswagen is built.
On September 3rd, 1996, the new manufacturing plant for the Octavia is ceremoniously opened.
With the Octavia, the manufacturer introduces the second model series.
1998
The success of the brand increases. In January of 1998, the company receives the name Skoda Auto a.s. and becomes the largest industrial company in the Czech Republic. In the same month, work starts for the construction of a new car body manufacture with a capacity of 1200 car bodies per day.
In May of 1998, the ground-breaking ceremony for the new Skoda Parts Center takes place.
In November, the construction of a model customer center and the hall for the production of engine and transmission components with an annual capacity of half a million units starts.
For the first time, Skoda produces more than 400,000 vehicles per year (1998). They are exported into 70 countries.
The Octavia is supplemented with a station wagon version.
1999
A further expansion of the Octavia range with a four-wheel version
In April of 1999, the new Research and Development Center is opened, strengthening the autonomy of the Technical Development Department
As the third model, the new Fabia is introduced on the market. It is immediately awarded with the "Golden Steering Wheel" in Germany.
2000
The Volkswagen Group becomes the hundred percent owner of the company.
The station wagon version of the Fabia is introduced.
2001
The internationalization is boosted. Skoda starts its production in Aurangabad, India.
The Superb is launched in the market.
2002
Sales on the Indian market begin.
In Kvasiny, Czech Republic, a new plant is opened.
2003
Skoda builds the four-millionth car in Mlada Boleslav since the entry of Volkswagen.
The Octavia II is launched in the market.
2005
The newly expanded Logistical Center for original parts and accessories in Mlada Boleslav begins its operations.
On November 1st, the Czech automobile manufacturer builds the five-millionth vehicle since 1991.
2006
For the first time, the annual production exceeds the amount of 500,000 vehicles.
Skoda ventures onto the Chinese market
As the fourth model series by the manufacturer, the smart space marvel Roomster is launched
2007
In Shanghai, the brand opens its first exclusive dealership in China and begins the licensed production of Skoda vehicles together with Shanghai Volkswagen.
The new Fabia enters the market and seamlessly continues the success of its predecessor.
2008
In March, the new Superb celebrates its world premiere. With that model, Skoda picks up the tradition of the model series from the 1930s and ventures into the upper middle class.
In a joint venture with Volkswagen, an assembly line in the Russian town of Kaluga is prepared.
Skoda proves its social commitment with the ceremonial opening if the educational center "Na Karmeli" in Mlada Boleslav. The Skoda Academy is located there as well.
The first, particularly environmentally-friendly vehicles of the GreenLine series are introduced in the market.
2009
At the Geneva Motor Show, the new Yeti is presented as the 5th model of the brand.
The number of vehicles built since the entry of Volkswagen exceeds seven million units.
The production of the Octavia in the Russian town of Kaluga begins at full depth.
2010
For the first time, the manufacturer exceeds the threshold of three quarters of a million sold vehicles.
For the first time, the manufacturer presents an electric vehicle - the concept car Octavia Green E Line - at the Paris Motor Show.
In December, Skoda and Shanghai Volkswagen sign a license agreement for the production of the Yeti in China, beginning in 2013.
Skoda Motorsports wins the world championship of the rally series "International Rally Championship".
With the Skoda Growth Strategy, worldwide sales are to be doubled to 1.5 million units by the year 2018.
2011
The manufacturer celebrates the jubilee "110 Years of Skoda Motorsports".
A new corporate design and the newly designed company logo are launched, marking the setting out of the company to new horizons.
The design study VISIOND gives a preview of the future design architecture of the brand.
20-year anniversary of the cooperation with Volkswagen.
Other Facts and Figures:
Skoda Chairmen of the Board since 1991:
Ludvík Kalma: from April 16, 1991
Vratislav Kulhanek: from April 16, 1997
Detlef Wittig: from October 1, 2004
Reinhard Jung: from October 1, 2007
Winfried Vahland: from October 1, 2010
Skoda Models Since 1991:
Skoda Favorit - 1987
Skoda Forman - 1990
Skoda Pick-up - 1991
Skoda Felicia - 1994
Skoda Pick up - 1995
Skoda Octavia - 1996
Skoda Fabia - 1999
Skoda Octavia Station Wagon - 1998
Skoda Fabia Station Wagon - 2000
Skoda Fabia Sedan - 2001
Skoda Superb - 2001
Skoda Fabia WRC - 2003
Skoda Octavia II - 2004
Skoda Octavia Station Wagon II - 2004
Skoda Roomster - 2006
Skoda Fabia II - 2007
Skoda Fabia Station Wagon II - 2007
Skoda Superb II - 2008
Skoda Yeti - 2009
Skoda Superb Station Wagon- 2009
Source: Skoda
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