Skoda Profit Leaps Sky-High

Czech auto company is on a roll

By Brendan Moore

10.29.2007

Skoda Auto announced that their YTD profit jumped a whopping 37.7% over the same 9 months of 2006. Skoda reported profit of 424 million euros compared to last year’s profit of 308 million euros.

Skoda, the Prague-based Czech subsidiary of VW, Europe’s biggest car company, just seems to do everything right lately. They have successfully staked out the value segment of the European market, and have not put a foot down wrong while rolling out successful models one after the other.

Skoda’s sales rose 12.6 percent in this same period to reach 462,400 cars, compared with 410,700 a year earlier. Skoda sold 549,667 cars in 92 countries last year, and expects to hit one million units sold in 2010.

And they should get there easily, considering their current sales trends and the fact that they keep pouring more money into production R&D and new model development every year. This year Skoda increased their budgets for same another 34% over last year, which in itself was a record year for expenditures in these areas. A company spokesman stated, “Our investments aimed primarily at innovation and expansion of our model lineup”, and certainly, the results so far speak for themselves.


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Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at http://www.cedarpointconsulting.com.

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4 Comments

  1. Drove a Skoda a few months ago while on business in Europe and once you drive one it’s hard to see how VW gets more money for the same car with a VW badge on it. Also, in some of the models, I think the Skoda looks better than the same size VW it goes up against.

  2. I read your post regarding Skoda with interest. Two questions:

    1. The manufacturer sponsors the Tour de France as the official car of the cycling event. Do you think it’s helped the brand?

    2. Will the brand ever be available in the United States?

  3. james raia:

    1. Yes, I think it’s helped their brand awareness in Europe.

    2. Very good question, and one I cannot answer. VW says “no way”, but then again they keep saying they need to de-content their models here because they have too many fetures that Americans don’t care about, and it makes the VW models more expensive then they should be. Which sounds like a problem tailor-made for Skoda to solve, the same it way it solves the same problem in other countries for VW. So I don’t know how steadfast VW is going to be about keeping Skoda out of North America in the future.

    B Moore

  4. Both Skoda and SEAT make some good cars from what VW gives them. But I think the chances of you Americans seeing either brand in the States is close to zero.

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