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Skoda Arrives In Australia

October 9th, 2007





Škoda Brand Overview

The New Euro Drive Down Under
Škoda is officially the newest European car company "Down Under", after launching its all-new operation at the Australian International Motor Show in Sydney on October 11.

The Škoda brand's Australian premiere marks the point at which European car ownership aspirations can be realised by an unprecedented number of Australians - at a value more typically associated with comparable Japanese brands.

"Škoda will re-engineer the value equation surrounding the European driving experience," said Head of Škoda Australia Matthew Wiesner. "Our vehicles are engaging, refined, and packed with exactly the kind of equipment today's discerning buyers demand. Add ultra-sharp pricing, and Škoda's underlying value is unbeatable."

Škoda will debut at the Australian International Motor Show, with two exciting new vehicles that offer an unbeatable combination of spirited European dynamics, distinctive style and refined comfort. Compared with competitors, both new Škoda entrants really deliver on equipment levels, safety and practicality.

Škoda is one of the oldest automotive brands, having been in continuous production for more than 100 years, since 1905. Today the company manufactures more than half a million vehicles annually, and is the Czech Republic's largest corporation, biggest employer and most prolific exporter, and is a wholly owned subsidiary of Volkswagen AG.

"Škoda has over the past few years achieved the strongest growth in the Volkswagen group, with a rock-solid reputation and strong sales across Europe and in the United Kingdom," said Matthew Wiesner. "The brand launches in Australia with all the boxes ticked, and with vehicles that are right for busy Australian buyers who need a car that's more than up to the challenge of accommodating a broad range of busy lifestyles."

Škoda competes in the global marketplace with a product portfolio composed of four models - the Fabia, Octavia, Superb and Roomster. Initially, Škoda will offer two of those Down Under - the mid-sized Octavia, which boasted engine and equipment upgrades in 2006 and is the company's top seller, and the funky, ultra-practical Roomster, which first went on sale internationally from June last year.

ŠKODA: AUSTRALIAN LAUNCH

Škoda will launch in Australia with two exciting new vehicles that offer an unbeatable combination of spirited dynamics, style and comfort. Compared with competitors, both new Škoda entrants really deliver on equipment levels, safety and practicality. The value proposition is practically unbeatable.

Roomster

  • Unique spatial execution maximises
    versatility and manages to be simultaneously driver-, passenger- and cargo-friendly.
  • Engaging Euro-drive experience, with top-quality inclusions standard.
  • ESP and five-star NCAP crashworthiness rating.
  • Leading petrol and diesel engine options.
  • Ultimately versatile seating configurations adapt quickly to a multitude of roles.
  • Internationally launched June 2006

Octavia

  • Škoda's top-selling car globally
  • Three models and five engines in the range.
  • Cutting edge TDI diesels and turbocharged petrol engines with direct injection
  • Performance flagship the Octavia RS combines ultimate driver engagement with practicality in
    sedan or wagon models - at the right price.
  • ESP standard, along with a range of high-quality inclusions expected of a premium
    European brand

See separate Roomster kit for detail See separate Octavia kit for detail

Škoda will launch in Australia with 10 dedicated Škoda dealers in its network, three in NSW (2 metro),
two in Victoria (1 metro), three in Queensland (1 metro), one in Adelaide, South Australia, and one in Perth, Western Australia. It is planned that the network will expand to approximately 25 dealers in 2009, and approximately 30 in 2010.

 

ŠKODA: GLOBAL PERSPECTIVE

Background Briefing
Škoda Auto is one of the world's few car manufacturers to boast a history of continuous car production stretching back for more than one century. The company's first car was built in 1905, at the approximate dawn of the automotive era.

As such, Škoda is one of the world's oldest automotive brands.

Škoda Auto is the Czech Republic's largest corporation, and its biggest exporter and employer. It is also widely acknowledged as the country's most admired corporation and Employer of the year, 2006.

Škoda is wholly owned by the Volkswagen Group in Germany. Volkswagen Group's association with Škoda began in 1991, when the company took a 30 per cent equity position in Škoda and began a joint venture partnership aimed at satisfying the growing demand for cars in central and eastern Europe. The Czech-based manufacturer was ideally placed, both geographically and technically, with a strong engineering reputation and a highly skilled work force - plus a robust cost/benefit economic position.

Volkswagen grew its equity in Škoda progressively, acquiring a 60.3 per cent share in 1994 and increasing that to 70 per cent in 1995. Škoda became a Volkswagen subsidiary more than eight years ago, on 30 May 2000, when Volkswagen took up the remaining 30 per cent share of the company's equity, then owning it outright.

Škoda is the Czech Republic's largest exporter. Škoda's export production makes up an incredible 7.7 per cent of total Czech Republic exports, and 78 per cent of that export production is sold within the European Union. The brand is now ideally placed to exploit growing opportunities beyond Europe.

Škoda is also a key component supplier to other Volkswagen Group companies. In 2006, Škoda produced 282,564 three-cylinder 1.2-litre engines, more than 60 per cent of which were supplied to other Volkswagen companies. It also provided almost 45 per cent of the MQ 200 gearbox's annual production volume of 457,314 units to Volkswagen companies.

Škoda today remains an icon of the Czech Republic as well as a high-profile sponsor of key regional sporting and cultural events including the Tour de France, the Ice Hockey World Championship and the Czech Philharmonic Orchestra. Škoda Motorsport is engaged in the World Rally Championship, with Škoda-supported Fabia entrants achieving fifth and sixth places in Rally Cataluna and Rally Germany respectively in the 2006 season.

 

GLOBAL PRODUCT RANGE

Last year marked the first time Škoda's production exceeded the half-million-vehicle mark. The total number of vehicles produced in 2006 was 556,347, representing production growth of 12.6 per cent over 2005. Two new models entered production in 2006, the Škoda Roomster in March and the Škoda Fabia hatchback successor in December.

Today four Škoda models are produced - Fabia, Octavia, Roomster and Superb. Of these, Octavia accounts for more than half of all Skodas currently sold.

FABIA

The Fabia lineup is produced in two versions, a compact hatchback and roomy 'Wagon'. A total of 240,919 Fabia's were produced in 2006, representing 6.5 per cent growth over the previous year. The new generation Fabia has just been launched in Europe in 2007.

OCTAVIA

The Škoda Octavia is explained in detail in the dedicated Octavia media kit for Australia. Globally, a total of 269,774 Octavias were produced in 2006, representing more than half of Škoda Auto's total vehicle production, and a significant 9.4 per cent increase over 2005 Octavia production volumes.

ROOMSTER

The Škoda Roomster is explained in detail in the dedicated Roomster media kit for Australia. The new Škoda Roomster is built at the Kvasiny plant in the Czech Republic, with production being ramped up to meet market demand. A total of 25,055 Roomsters were produced in 2006, after production began in March.

SUPERB

The Superb is manufactured in one body style: the limousine. Two engines are available, a 2.8-litre 30-valve V6 engine boasting 142kW, and a 2.5-litre diesel with 120kW. A five-speed Tiptronic automatic transmission is an option. Production volumes were constant over 2006, with 20,403 Superbs produced.

 

GLOBAL PRODUCTION & MANUFACTURING

Škoda will produce more than 600,000 cars in 2007, employs almost 27,000 staff and has a presence in more than 90 countries around the globe. Three per cent of all Czech workers are employed either directly or indirectly by Škoda.

Production Facilities

Škoda has production plants in the Czech Republic, at Mlada Boleslav, Vrchlabi and Kvasiny, and another plant in India, at Aurangabad. In addition to these, partner assembly plants are located in:

  • Ukraine, at Solomonovo
  • Bosnia and Herzegovina, at Sarajevo
  • Kazakhstan, at Ust Kamenogorsk

A total of 34,825 Škoda cars were assembled at these partner assembly plants outside the Czech Republic in 2006.

Škoda produces complete vehicles as well as kits in various stages of assembly. Component assemblies are produced in various production plants and shipped to assembly plants for final production. The company also produces component parts, such as engines and gearboxes, and their component parts, as well as genuine parts and accessories.

Škoda Sales Worldwide, 2006: Selected Highlights

Country Vehicles
Germany 103,931
Czech Republic 65,171
United Kingdom 38,801
Poland 28,783
Spain 24,869
Slovakia 21,380
Austria 16,943
Hungary 16,892
Italy 16,754
Non-European markets 36,541
Total Škoda production 549,667

Source: Škoda Auto Annual Report 2006, vehicle customer deliveries

Not all export countries shown above

Škoda Vehicle Production by Model, 2006

Model Vehicles
Octavia 269,774
Fabia 241,115
Roomster 25,055
Superb 20,403

Source: Škoda Auto Annual Report 2006.

Note: Roomster first on sale June 2006; production currently being ramped up to meet demand

 

ŠKODA HISTORY

More than a century of continuous automotive design and production

1895
Established as Laurin and Klement, the company starts as a bicycle manufacturer. Motorcycle manufacturing began in 1899.

1905
The fist car, called a Voiturette A, is produced, and grew quickly to success.

1920s
Truck production begins after WWI. Laurin and Klement merge into Škoda Works in 1924, then the biggest industrial enterprise in Austria/Hungary and later Czechoslovakia. Škoda's new model, the Popular, lives up to its name after the economic depression.

WWII
During the WWII German Occupation of Czechoslovakia Škoda works becomes part of Hermann Göring Werke serving the German war effort.

1950-70s
Despite lost contact with technical development in non-communist countries after WWII, Škoda develops an international reputation for building extremely robust and reliable cars like the 440 Spartak, the 445 Octavia, the Felicia and the 1000 MB. Successful rally competition with rear-engined models like the Estelle and Rapid is enjoyed in the 1970s and 1980s.

1980s
The year 1987 marked a technological turning point for Škoda, marked by the hugely successful Favorit. Designed by leading Italian design house, Bertone, it became a huge success, and the technology gap of the past began quickly to close.

1990s
The Velvet Revolution, which in 1989 ends more than four decades of communist rule in Czechoslovakia, delivers profound change to the politics and economy, and many industries are subject to privatization. In April 1991 Škoda begins a joint-venture partnership with Volkswagen, which takes a 30 per cent share in the company. That equity grows to 60.3 per cent on 19 December 1995, then 70 per cent on 11 December 1995, and finally 100 per cent on 30 May 2000, when Škoda becomes a wholly owned Volkswagen subsidiary.

2000s
Škoda undergoes a rapid technological and image-based transformation to become a premium European brand with excellent underlying price-for-value economics for customers. As core models Fabia and second-generation Octavia evolve, the company draws from its core engineering strengths to offer top-quality design with a human touch. Škoda quickly becomes recognised as a vehicle manufacturer offering attractive, practical solutions to everyday issues, living up to its maxim, 'Simply Clever'. Sales exceed half a million units in 2006, and the brand has a presence in over 90 countries. Production will exceed 600,000 in 2007.

 

QUALITY & MARKET INTEGRATION

Quality
Škoda complies with international quality standard ISO 9001:2000 in the areas of development, production, sales and service. For customers, this standard guarantees every Škoda vehicle produced is comprised of approved, genuine parts identical to the approved type, and that all regulations valid not only in the Czech Republic but abroad as well are complied with. Quality management at overseas production and partner assembly plants also complies with the standard.

Škoda also directly monitors and audits customer care at retailers and authorised service centres. Anonymous "shop tests" are regularly conducted in service centres using customer vehicles. Together with detailed dealer image analysis and customer surveys, a picture of growing customer satisfaction has emerged. Results to date indicate customer satisfaction has grown from 74 per cent (percentage of customers satisfied with dealership and service centre services) in 1997, to 82 per cent customer satisfaction in 2006.

New measures are currently employed to drive customer satisfaction even higher.

Market Integration
In 2006, Škoda set new sales records in more than 30 markets, including Germany, the United Kingdom, Spain, Romania and Ukraine.

Key Markets

Czech Republic: Škoda retained its position as domestic market leader in 2006.

Central Europe: Škoda retained its position as number one car maker in the region, with healthy sales increases in Poland and Slovakia (4.1 and 3.0 per cent respectively). Škoda enjoys a 12 per cent
market share in Poland.

Eastern Europe: Škoda earned its highest growth in sales in 2006 - a massive year-on-year 52 per cent increase - in Eastern Europe.

Western Europe: In its strongest market, Škoda took its market share from 1.9 per cent in 2005 to 2.1 per cent in 2006. A total of 301,343 vehicles were delivered in the region. More than 10 per cent sales growth was earned in Germany (103,931 vehicles; up 15.3 per cent on 2005), Spain, Belgium, Greece, Luxembourg, and Finland.

Overseas/Asia: Huge growth potential exists for Škoda in this region. In 2006, deliveries were up 21.1 per cent to 36,541 vehicles, compared with 2005. India, currently the largest market in the region, saw sales grow 35.2 per cent.

Relative Car Production: Top Manufacturers

Manufacturer
Car Production 2006 (x 1000)
Honda
3550
Nissan
2513
Renault
2086
Hyundai
2231
Suzuki
2004
Peugeot
1960
Mazda
1170
Mitsubishi
1009
Chrysler
710
Skoda
550
Subaru
508
Holden
126

 

INDEPENDENT ACCLAIM FOR ŠKODA

Škoda's position as not only a premium European brand, but as a premium car manufacturer on the world stage is qualified by numerous independent accolades earned during 2006 and 2007.

JD POWER

The 2007 United Kingdom J D Power Customer Satisfaction Survey dispels any doubt concerning the resurgence of Škoda as a premium brand.

J D Power found Škoda so highly regarded by owners that the brand ranked joint second in this year's survey. Second only to Lexus in 2007, Škoda moved up one place from its third-placed 2006 result.

The 2007 UK survey results were based on the evaluations of more than 18,000 UK car owners after an average of two years' ownership, and encompasses 33 brands and 113 models. Owners provide detailed evaluations of 77 attributes surrounding their vehicles and the retailers.

The 2007 J D Power Survey marks the twelfth consecutive year that Škoda has been among the top five brands, representing the only manufacturer to achieve such consistent, long-running customer satisfaction.

The Škoda Octavia took first place in the Family Car class in the survey.

TOP GEAR

When more than 56,000 Top Gear readers rated 152 cars in the magazine's annual owner satisfaction survey, Škoda was voted the number one car manufacturer of 2006 overall. The survey was published in the March 2006 issue of the leading UK publication.

The Octavia, Fabia and Superb all took a place in Top Gear's top 10 positions.

Third place in the prestigious awards went to the previous generation Octavia, which Top Gear described as "a masterpiece of dependability".

A spokesperson for the magazine said: "It's a stunning achievement by the Czech manufacturer to break the Japanese monopoly at the top of the table - particularly to overhaul the domination of Lexus - and just reward for a decade of producing spot-on cars that press exactly the right buttons for its owners."

What Car?
The Škoda Octavia scored a notable double victory by scooping a pair of What Car? awards. The magazine awarded its annual Small Family Car award to the Octavia Ambiente for the second year running, and bestowed the prestigious Hot Hatch award on the high-performance Octavia vRS.

The Octavia's victory in the fiercely-contested Hot Hatch category prompted the judges to say: "Don't think Škoda has won here simply by offering value for money - the vRS is Škodas fastest-ever production car."

Judges also praised the vRS's unique combination of sportiness and practicality, saying: "The chassis harnesses all of the performance with a blend of comfort and control. It also fulfils its brief as a hot-hatch for grown-ups by providing loads of interior space. Discerning owners will gain a glow of satisfaction from the knowledge that their unassuming Škoda can wallop many more brash rivals."

In awarding the Small Family Car title to the Octavia Ambiente 1.6 FSI the What Car? judging panel described the 1.6 FSI Octavia as being "more spacious and practical than any direct rival. The judges concluded by saying, "None of the new pretenders have been able to unseat our defending champion, the Škoda Octavia."

 

ŠKODA: TOTAL ENVIRONMENT COMMITMENT

Škoda minimises the environmental impact of its activities, maintaining a balance between economic, environmental and social policies. The company adheres to all legislative requirements for environmental protection.

Škoda also requires its suppliers to adhere to strict environmental protection policies. Within the sales network, there is a heavy focus on waste management as well as air and water protection principles.

Škoda practises 10 core environmental objectives:

1. Abatement of airborne emissions
2. Abatement of waste materials
3. Abatement of water, energy and material consumption
4. Reducing wastewater, and improving its quality
5. Reducing the potential for water hazards
6. Improving the working environment
7. Improving the environment through green planting
8. Preventing soil contamination
9. Remediation of old environmental burdens
10. Continuous improvement of the environmentally friendly aspects of Škoda products

Škoda prefers to use recyclable materials and complies with all legislative requirements concerning the prohibition and limited use of materials such as lead, cadmium, hexavalent chromium, etc. Recycling concepts have been developed for given groups of parts, and procedures for environmentally safe disposal are also stipulated.

Škoda's vehicle design has been optimised to reflect state-of-the-art expertise in the fields of disassembly and recycling technology. Adaptation of vehicle construction from a recycling point of view has been tested by detailed disassembly studies.

Best-available technologies are used in the company's state-of-the-art paint shops in Mlada Boleslav, and strict greenhouse targets there are met. In addition, new sealed flooring in the plant prevents harmful substances from leaking into the soil, and previously contaminated soil has been remediated.

ŠKODA: TOTAL ENVIRONMENT COMMITMENT

Despite increases in production to over half a million cars in 2006, the company's absolute environmental impact has been reasonably constant, and some key indicators, such as water consumption, heat consumption for heating, and hazardous wastes actually dropped.


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