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.............................. Skoda
Logo and Trademark..............................
Škoda Auto is a Czech automobile manufacturer and one of the four oldest car producers in the world. In 1991, it became a subsidiary of the Volkswagen Group (VAG). The first model, Voiturette A, was a success and the company was established both within Austria-Hungary and internationally. By 1905 cars were being produced by the firm. During the First World War Škoda was engaged in war production.
The Velvet Revolution brought great changes to both the politics and economy of Czechoslovakia, and most industries were subject to privatization. In the case of Škoda automobile the government decided to bring in a strong foreign partner. Volkswagen was chosen in 1990 and in April, 1991, Škoda become the fourth brand of the Volkswagen Group. VW was pitted against French car maker Renault, who lost because its strategic plan did not include producing high value models in the Czech factories (The Renault Twingo city car was set to be produced in the Škoda factories.)
At the time the decision was made, privatization to a major German company was somewhat controversial; however the subsequent fortunes of other Eastern-Bloc automobile manufacturers such as Lada-AutoVAZ and Zastava, and of Škoda works itself, once Škoda auto's parent company, could be argued to suggest that this was not necessarily a poor decision.
Backed by VW know-how and investments the design — both style and engineering — has improved greatly. The 1994 model Felicia was still based on the floorpan of the Favorit, but quality improvements helped and in the Czech Republic the car was as popular as it was value for money. The subsequent models Octavia and Fabia finally made their way to the demanding EU markets. They are built on common VWAG floor plans. Octavia is based on Golf floorpan, and Fabia is based on the A00 floorpan. This is interesting as it came out a year before VW released the new Polo that was also based on it.
The perception of Škoda in Western Europe has changed completely. As technical development progressed and attractive new models were brought to market, 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 the early 2000s. 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 must not be Škodas.
This market campaign worked by confronting Škoda's image problem head-on — a tactic which marketing professionals regard as high risk. If the Fabia and Octavia had been anything less than excellent cars, then the campaign might have backfired badly. By 2005, Škoda was selling over 30,000 units per year in the UK which amounted to a market share of over 1%. For the first time in its UK history, a waiting list developed for deliveries by Škoda. Škoda owners in the UK have consistently ranked the brand at or near the top of the J.D. Power customer satisfaction survey during the 2000s.
Škoda now has various manufacturing and assembly plants including one in Sarajevo, Bosnia and Herzegovina. Škoda also has an assembly plant in the city of Aurangabad in the western Indian state of Maharashtra. Škoda is a participant in the World Rally Championship with Škoda Fabia WRC until 2005. The 2006 season saw Škoda represented by a private team.
In 2006, Škoda presented its brand new model Roomster, which is a small van with a unique design, which reflects future trends. At the end of December 2006, Škoda also released the first official pictures of the new Fabia, a model that will replace Fabia in 2007. A new concept car was presented at the Paris Auto Show in September 2006. The concept was called Joyster and it is a three-door compact car intended especially for young people.
In 2005 the company produced 494 637 vehicles, and on November 22, 2006 produced the five hundred thousandth vehicle of 2006, the first time in Škoda's long history that this target had been reached. By the end of 2006, over 550 thousand vehicles had been produced. Volkswagen AG's Australian arm, VGA (Volkswagen Group Australia), recently announced that they will be returning Škoda to the Australian car market in October, 2007. Škoda vehicles were last sold in Australia up until 1983.
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