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A škodA year in review2012
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32012 – A ŠkodA year in review
2012 – A ŠkodA year in review
Contents
Foreword by the Chairman of the Board of Management Prof. Dr. h.c. Winfried Vahland 4Board of Management 6A class of its own – the third generation of the all-new ŠKODA Octavia makes its debut 8“The new ŠkodA octavia – a car with style” – an interview with head designer Jozef Kabaň 14 Shaping the Company’s future – the ŠKODA global growth strategy impacts many different areas. Investments into
additional production and storage capacity, IT, logistics networks and staff training pave the way to the next level 16Small car, big impact – the ŠKODA Citigo was designed to appeal to new target groups and customers worldwide 21For a greener future – sustainable development is important for ŠKODA AUTO. With the GreenFuture project the
Company has entrenched sustainability even more firmly within the Company 22The new class of ŠkodA – with the ŠKODA Rapid, ŠKODA introduces the youngest model series into its portfolio 26Breaking down borders – with its ambitious model offensive and international growth strategy ŠKODA sets the course
for a continued successful global development 30“Employees are ambassadors of our brand abroad” – an interview with ŠKODA Board of Management member
for Human Resources, Bohdan Wojnar 34Highlights of the year – 2012 has been an extremely busy but also very successful year for ŠKODA with the launch
of new models, new sales records and many other remarkable events 35‘Simply Clever’ is a reality throughout the Company – an interview with ŠKODA Board of Management member for
Technical Development, Dr. Frank Welsch 40 The fascination of tradition – at the redesigned ŠKODA Muzeum in Mladá Boleslav visitors can embark on an inspiring
journey through 117 years of the ŠKODA brand’s history 42A truly historic performance – ŠKODA goes on to win the most important international rally championships as well as
six national rally competitions in 2012 49“Tradition-minded, team-spirited and hungry for success” –
an interview with the Head of ŠKODA Motorsport, Michal Hrabánek 53Product portfolio – with the launch of the ŠKODA Rapid, the brand’s model range now encompasses seven model
series for virtually all market segments 54
4 2012 – A ŠkodA year in review
We have had another extremely successful year – our eighth consec-utive record year; a year in which ŠKODA AUTO set the right course for the future; a year in which we continued to forge ahead with our growth strategy in all areas. In 2012, we sold a total of more than 939,200 vehicles and therefore exceeded the previous year’s record deliveries. We are also well on our way to reaching our strategic sales target of at least 1.5 million ŠKODA automobiles per year by 2018.
We were able to strengthen our position in key markets in 2012, despite the difficult situation in a number of European markets. Never theless, the outlook remains positive: The global automobile markets will continue to grow and our model offensive will provide the necess ary momentum. In 2013 alone, we will be introducing eight new ŠKODA models, beginning with the new ŠKODA Octavia, the heart of our brand, which we recently presented at the Geneva Motor Show as Sedan, Combi estate car and 4x4 Combi estate versions. With record investment at our sites, we also created the neces sary conditions for the continued growth of our Company.
Positive sales development and successful measures to boost effi-ciency ensured that our financial performance remained largely sta-ble despite difficult conditions worldwide. Sales revenue increased by 4.0% year-on-year to reach CZK 262.6 billion and operating profit reached CZK 17.9 billion. This gives us the strength to keep ŠKODA AUTO on a steady growth course.
The most important pillar of our continued growth is our model of-fensive: Over the next few years, we will be introducing a new or sub-stantially-revised ŠKODA vehicle onto the market every six months on average. We started out with the ŠKODA Citigo – our Company’s first venture into the fast-growing small car segment. This was followed by the ŠKODA Rapid, which combines the finest qualities ŠKODA has to offer – space, functionality and value for money. It is al-so the first car with our new ŠKODA design. The new ŠKODA Rapid is positioned within the ŠKODA model range between the ŠKODA Fabia and ŠKODA Octavia: It is a new class of ŠKODA. The final world pre-miere of the year was the new ŠKODA Octavia in December 2012: The third generation of our bestseller was welcomed with enthusiasm by public and experts alike. It is set to continue the model’s on-going success story, which began in 1996.
We will use the strength of our brand to convince people of our val-ues in impressive new models. ŠKODA automobiles are a reliable and practical aspect of our customers’ life, with lots of smart and useful ‘Simply Clever’ details.
Prof. dr. h.c. Winfried VahlandChairman of the Board of Management
Foreword
52012 – A ŠkodA year in review
‘Simply Clever’ also applies to our vehicles themselves, and defines our thoughts and actions throughout the entire company.
We achieved important milestones in 2012, strengthening our mar-ket position, especially in growth markets. In December, we launched production of the ŠKODA Yeti at the Nizhny Novgorod plant, in coop-eration with Volkswagen and the Russian manufacturer GAZ Group, to meet the steadily growing demand for this specific model in the Russian market.
To secure our future growth, we made substantial investments in many areas: The ŠKODA Octavia and Rapid production line at our Mladá Boleslav headquarters was expanded from 800 to 1,200 units per day. Local production lines for axles were also modernised and production retooled for state-of-the-art TSI petrol engines. Our parts centre was expanded to meet constantly growing demands, and a new, high-performance energy-efficient IT centre was also put into operation. After extensive remodelling, modernisation and expan-sion, the Vrchlabí plant began production of the advanced DQ200 seven-speed dual clutch transmission, while in Česana, construction of a new engine testing centre got underway. At our new ‘Lean Cen-tre’, we are already training employees from all divisions in important subjects, such as ‘lean’ production methods, efficiency and optimised process control.
Regular employee training is vital to our global presence. ŠKODA employees abroad must not only possess the necessary professio-nal skills, but also the will and capability to adapt to new and often unexpected challenges. For this reason, we launched a number of different programmes in 2012 to prepare our employees for work-ing abroad and to support them while they are away and when they return. These initiatives enable our employees to serve as capable ambassadors of our brand abroad.
Although ŠKODA AUTO has its eyes firmly fixed on the future, the Company is understandably proud of its over 117-year history. In re-cognition of this, and to provide a fitting setting in which to tell the fascinating story of our Company, we have completely redesigned and remodelled the ŠKODA Muzeum in Mladá Boleslav. Visitors to the new museum not only have the opportunity to admire magnificent ŠKODA cars from the past, but also to appreciate the power of the ŠKODA brand.
The strength that comes from being part of a long tradition is not only evident at the new ŠKODA Muzeum. The successful track record
of our motorsports team is also rooted in our Company’s more than 111-year motorsports tradition and its wealth of experience.
2012 was the most successful year to date in our motorsports history: The team continued its winning streak with victories in the Europe-an Rally Championship and the Asia Pacific Rally Championship as well as six national rally competitions. ŠKODA Motorsport’ exception-al achievements were exemplified by its hat-trick in the prestigious Intercontinental Rally Challenge: In 2012, ŠKODA Motorsport brought home both the driver and manufacturer championships for the third year in a row.
In the crucial area of sustainability, we are open to new ideas – set-ting ambitious goals and finding new ways to reach them. Respon-sibility towards people and the environment defines the actions of ŠKODA AUTO, from vehicle development through production to re-cycling. We have therefore established the ambitious ‘GreenFuture’ environmental project to entrench sustainability even more firmly throughout the Company.
We aim to make individual mobility as sustainable as possible. We al-ready have more than 50 models in our line-up with emissions of less than 120g CO2/km – including almost a dozen with less than 100g CO2/km. We are currently testing a fleet of electric cars in everyday driving conditions, which will provide us with important insights for electric driving.
One thing is clear: 2012 would never have been such a successful year without a team that is prepared to do everything in its power to support the goals of our Company. The sales records, the strength of our brand, the exceptional quality of our vehicles, our strong reputa-tion at home and abroad: All of these achievements are thanks to the hard work and dedication of our colleagues – and we are extremely grateful to all of them.
We have ambitious plans for 2013. We will do everything to ensure that the ŠKODA AUTO success story continues! This fascinating com-pany with its fine history is worth every effort.
Yours
Prof. dr. h.c. Winfried VahlandChairman of the Board of Management
6 2012 – A ŠkodA year in review
Taking it to the next level: Successful implementation of the ŠKODA growth strategy demands top performance from all divisions.
ŠKODA will increase its worldwide annual
sales to at least 1.5 million units by 2018.
Besides Europe, the strongest growth is likely
to come from the emerging markets. Prof. Dr. h.c. Winfried Vahland, Chairman of the Board of Management
The successful implementation of the ŠKODA growth
strategy creates many opportunities for purchasing –
in the procurement of purchased parts and services, as
well as in planning and monitoring. We are deter -
mined to use these opportunities to our advantage.Dipl.-Ing. Karlheinz Hell, Board Member for Purchasing
We increased our deliveries even though
markets were difficult. The situation in the markets
continues to be demanding. However, ŠKODA remains
on the offensive with new models.Werner Eichhorn, Board Member for Sales and Marketing
Board of Management
72012 – A ŠkodA year in review
ŠKODA is preparing its locations for growth
in the years to come. The production is aimed
at creating the necessary conditions for
this. We are pursuing our plans consistently. Dipl.-Ing. Michael Oeljeklaus, Board Member for Production and Logistics
The new ŠKODA Octavia shows how
ŠKODA is consistently following its own path.
It boasts the qualities of a mid-sized car
at a compact car price. It is the ideal car for
demanding, self-assured customers.Dr. Ing. Frank Welsch, Board Member for Technical Development
We continue to invest in new products.
Our expenditures clearly show that we are
consistently pursuing our goals and implement
them with concrete measures. We have
set the right course and will continue to do so.Dipl. Kfm. Winfried Krause, Board Member for Commercial Affairs
ŠKODA advanced in all relevant
fields. We need a top team
for our growth plans. We are
continually improving our staff’s
skills level as well as hiring
external talents.Ing. Bohdan Wojnar, ŠKODA Board Member for Human Resources
8 2012 – A ŠkodA year in review
ŠKODA Octavia
A class of its own – the new
ŠKODA Octavia
92012 – A ŠKODA year in review
It was one of those moments when everything comes together – in this case, decades of experience and the latest insights, know-ledge and intuition, engineering expertise and a passion for cars: On 11 December 2012, the third generation of the ŠKODA Octavia is about to make its world debut at the redesigned ŠKODA Muzeum in Mladá Boleslav. It is shortly before two o’clock. This is no ordinary event. Today will have far-reaching consequences and set the course well into the future –what is being presented here, after all, is a successor to the most successful ŠKODA model ever. Success is an obligation. The first journalists and camera teams begin to arrive more than two hours before the official start of the event. They come from the Czech Republic, of course, as well as Germany, Switzerland and Austria, but also from farther afield – Ireland, the UK and even India. Many of them have made a long and difficult trip to be here. Nobody
For ŠKODA, the third generation of the ŠKODA Octavia is more than just another
new car. The rise of ŠKODA since the Nineties is closely tied to the
sustained popularity of the ŠKODA Octavia – the car that is the ‘heart of the brand’.
Customer expectations for the new model are correspondingly high.
10 2012 – A ŠkodA year in review
wants to miss the ŠKODA presentation of the latest version of its most important model and top-seller.For now, the new ŠKODA Octavia is still under wraps, concealed under a light-green sheet in the lobby of the ŠKODA Muzeum. Some of the more inquisitive guests tentatively run their hands over the material: along the door handles and bonnet, eager to learn more. But it is not time yet. The suspense is rising. Every-one makes their way into the Museum’s huge new assembly hall. An enormous stage with turntable and 270-degree pro-jection screens awaits journalists from around the world. Drums roll, and a burst of loud music announces that the time has come – the countdown begins. ŠKODA Chairman of the Board of Management Prof. Dr. h.c. Winfried Vahland drives on-to the stage in a bright red latest-generation ŠKODA Octavia. All cameras are trained on him and the car. Amid a flurry of cam-era flashes, Vahland addresses the audience, but perhaps also – just a little – the car that stands behind him on the turntable, shiny and new: He tells the press, the ŠKODA Octavia is “a mile-stone for the Company”, “the heart of the brand”. The new mod-el is “a good car made even better”. The ŠKODA CEO assures the audience that new cars are “the best concept against weak markets in Europe”. The more than 3.75 million ŠKODA Octavia cars sold since the first generation was launched in 1996 cer-tainly tell a convincing story. The ŠKODA Octavia has made the ŠKODA brand what it is today: a successful international player that sells cars in more than 100 countries worldwide. Winfried Vahland names the strengths of the new ŠKODA Octavia: It is roomy, practical, safe, timelessly elegant, techni-cally advanced, reliable and affordable – and, naturally, ‘Simply Clever’ with many practical details. The ŠKODA Octavia has all the right ŠKODA genes and delivers exactly what customers need. The ŠKODA Octavia is, and always has been, a very special car that boasts the qualities of a mid-range vehicle at a com-pact-car price. The total package of generous space, time-less design, high functionality, sophisticated technology and
ŠKODA Octavia
Greeted by thundering drums and welcomed by the ŠKODA Board of Directors, leading ŠKODA representatives and the international press: The new ŠKODA Octavia made a lasting impression at its festive premiere in the ŠKODA Muzeum in December 2012.
112012 – A ŠkodA year in review
affordable price make the ŠKODA Octavia unique in its class. Since 1996, the ŠKODA Octavia has always offered a bit ‘more’ car. That is its formula for success. Winfried Vahland concludes: “The new Octavia is our best. It is a class of its own.” The scene changes: The new Board Member for Techni-cal Development Frank Welsch drives onto the stage in a silver-coloured ŠKODA Octavia and pays tribute to the engineers, whose expertise and hard work went into the new ŠKODA Octavia, setting new standards for aerody-namics, exhaust emissions and fuel economy. And who also succeeded in making the new generation up to 102 kilos lighter – despite its larger interior, improved safety equipment and extensive comfort features.
With fuel consumption of only 3.3 l/100 km and emissions of 87 g CO2/km, the GreenLine variant of the new ŠKODA Octavia is especially fuel-efficient. Frank Welsch points out that with the sales targeted for this major high-vol-ume model, the new ŠKODA Octavia will help fulfil the Company’s responsi bility for the environment, resources and people. At the same time, it also features the latest driver assistance systems for convenience and safety, which were previously found only in luxury and high-end models and are now available for the first time in a ŠKODA compact car. ŠKODA Octavia customers have always appreciated the car’s generous space. But the new generation goes even further and offers substantially more room than its already
Reinterpretation of a modern classic: The third generation of the ŠKODA bestseller is more impressive than ever with striking looks, strong inner values and the same exceptional price/performance ratio – proving that good things don’t have to be expensive.
12 2012 – A ŠkodA year in review
spacious predecessor, according to Frank Welsch, and sets a new benchmark in its segment: No other compact car has a longer pas-senger compartment, greater legroom or more headroom in the back. There is also added headroom for front-seat passengers, and more elbowroom in the front and back. The ŠKODA Octavia’s biggest asset has always been its luggage compartment, and that applies more than ever to the new model, which now boasts a capacity of 590 litres – a new best-in-class. Lug-gage for five people or a whole week’s worth of shopping present no problem at all. With the backseat down, the volume expands to 1,580 litres to allow a surfboard or even a wardrobe to fit inside. The new ŠKODA Octavia also features lots of typically-ŠKODA ‘Simply Clever’ ideas – things that make life easier for ŠKODA Octavia driv-ers. Frank Welsch mentions the reversible floor covering for the lug-gage compartment: one side with ‘elegant’ carpeting; the other with a washable rubber coating – ideal for wet ski-boots or even trans-porting sacks of potatoes. Flexible cargo elements to prevent items from sliding around in the luggage compartment can easily be folded away. Frank Welsch also points out the safety vest stowed under the front seat, the ice scraper built into the fuel filler cap and the smart-phone holder integrated into the cup-holder.
Jozef Kabaň is the last to address the media. The head designer of ŠKODA is responsible for the striking looks of the new ŠKODA Octavia. Born in Slovakia, with a strong international reputation, Kabaň speaks in German with feeling and enthusiasm: Common sense and passion must come together in a car. Or, in his own words: Despite all the “features for the head, the heart must not stay un-moved”. People seem to understand exactly what he means. The audience feels his enthusiasm as he runs his hands along the body of the car. Clear, precise, timeless design was the requirement for the ŠKODA Octavia. The third generation must project value and self- assurance and be able to maintain its appeal over the years. Kabaň’s final words sound like a heartfelt ‘farewell’ to a good friend who must now make his way on his own: “May your story be a suc-cessful one”, he says as he steps back with a last critical glance over the new car. In one of the many interviews Kabaň gives after the world premiere of the ŠKODA Octavia at the ŠKODA Muzeum, he talks of his pride in continuing the ŠKODA Octavia’s long tradition with this new model. Of course, he hopes that the success of this model will earn the ŠKODA Octavia a place in the brand museum sometime in the future. Expertise and passion – for ŠKODA, two concepts that are inextricably linked.
Key production areas at the main plant in Mladá Boleslav were modernised and expanded for produc-tion of the new ŠKODA Octavia. The new model carries the high expecta-tions of the entire work-force. The ŠKODA Octavia is closely tied to the rise of the ŠKODA brand, and, for that reason, is con-sidered the ‘heart of the ŠKODA brand’.
ŠKODA Octavia
More and less: longer and wider, with more luggage space,
more legroom, more headroom, more safety and more assistance
systems. But also: less weight, lower fuel consumption and
lower CO2 emissions – the ŠKODA Octavia is in a class of its own.
132012 – A ŠkodA year in review
A new era began for the ŠKODA Octavia in 1996: ŠKODA AUTO, now part of the Volkswagen Group, presented a to-tally re-developed car and named it ‘Octa-via’ in honour of its successful predeces-sor, the eighth ŠKODA model produced after the end of the Second World War – hence the name. More than 1.4 million ve-hicles of this first generation of the mod-ern-day ŠKODA Octavia had already been sold by 2004.The second generation is launched in 2004. From the start, it sets new stand-ards for quality, reliability, practicality and value for money. ŠKODA Octavia cars are built in Mladá Boleslav, Vrchlabí, Kaluga, Aurangabad (under the name ‘Laura’), Ust-Kamenogorsk (Kazakhstan), Bratisla-va (Slovakia) and Solomonovo (Ukraine). In 2007, production of the ŠKODA Octavia begins at Shanghai Volkswagen in China. Sold under the name ‘MingRui’, the model soon becomes a top-seller in China, too.
An estate car (‘Combi’), a four-wheel-drive off-road version (‘Scout’) and the sporty ‘RS’ version of the ŠKODA Octavia are also sold alongside the sedan. The ŠKODA Octavia serves as the basis for the first electric vehicle of the brand, a concept car based on the ŠKODA Octa-via Combi with the name ‘Green E Line’, which is presented at the Geneva Motor Show in 2010. A fleet of ten of these electric vehicles began field trials in everyday driving at the end of 2011.Demand for the Octavia exceeds any-thing ŠKODA has seen before, with more than 3.75 million modern ŠKODA Octavia vehicles of the first and second gener-ations sold between 1996 and the end of 2012, making it by far the top-selling model in the long history of the ŠKODA brand. No other model series symbolises the brand’s resurgence since the Nineties like the ŠKODA Octavia, the ‘heart of the brand’.
The ŠKODA Octavia will be even more vi-tal to the ŠKODA brand in the future. The latest model raises the bar in the com-pact car segment and will strengthen its unique position in this class. The impres-sive sedan offers unbeatable spacious-ness, new design, high functionality, in-novative systems for enhanced safety and comfort, excellent fuel economy, countless ‘Simply Clever’ ideas and typical ŠKODA value for money. The new, third generation will also play a crucial role in the ŠKODA growth strategy. ŠKODA is aiming to sell at least 1.5 million vehicles a year worldwide by 2018, with a new or re-vised model scheduled for release every six months over the next few years. The new ŠKODA Octavia will continue this offensive, following on from the ŠKODA Citigo and the ŠKODA Rapid. The new ŠKODA Octavia will be of particular signifi-cance as the ŠKODA brand’s main volume model.
ŠKODA Octavia – building on decades of success
Cutting a fine figure – then, as now: the ŠKODA Octavia through the years.
14 2012 – A ŠkodA year in review
152012 – A ŠkodA year in review
Inter view
Interview with head designer Jozef Kabaň
“The new ŠKODA Octavia – a car with style”
The modest and reserved head designer of ŠKODA has worked for Volkswagen, Audi and Bugatti and, over the course of his career, made himself a name as one of the most crea-tive automobile designers around. For ŠKODA, Kabaň de-veloped a new design language that will define all future models. The ŠKODA Octavia is particular-ly close to his heart: He under-stands how crucial this model, in particular, is to the brand and the Czech people, who have re-garded the ŠKODA Octavia as the pinnacle of Czech engineer-ing expertise for many years.
Mr Kabaň, what´s so special about the design of the new ŠKODA Octavia?Clear lines. clean surfaces, at-tention to detail – a really at-tractive car with style – the true ŠKODA Octavia.
Doesn’t every designer say that about their latest masterpiece?Well, perhaps. But I believe we have really managed to combine
the maximum with the mini-mum. What I mean is: maximum impact with minimum visible design complexity. I love mini-malism!
Can you be more specific?See the dynamic effect of the upswept window line in the rear doors? We call this design detail ‘the fin’. Or the rear of the car: clearly-defined, tidy, clean – for me, that is pure reduction to the essential.
The front headlights also look kind of playful …That’s right. Successful car de-sign connects on several lev-els, not just one. With the front headlights, we have extended the vertical lines of the front grille into the headlight itself as an il-luminated element. The effect is not unlike a woman’s eyelashes – beautiful and sensual – and al-so pays tribute to the art of tradi-tional Bohemian glass-working. But the overall impression of a car is actually about something completely different.
How do you mean?Proportions. Proportions are what count. We’ve given the new ŠKODA Octavia a longer wheelbase than its predeces-sor – which, with its shortened front overhang, makes the car look more dynamic. At the same time, there is a smooth and har-monious flow to the side view. The new car looks wider – and it is. That gives it a very self-as-sured stance. It looks good on the road. That is what this is all about: dynamism and repose, clarity and concision.
If you compare the new ŠKODA Octavia with the previous model …… then I see that it has grown up in more than one way. Our job was to create a shape for the most successful member of the ŠKODA model family, which would appeal to customers worldwide. The ŠKODA Octavia is the heart of our brand and a key model in our growth strate-gy. Its design must be distinctive and appeal to many different
target groups. What an exciting task! As I see it, our ŠKODA Octa-via has grown up.
How do you balance the diverse design expectations of a global audience with the personality a car needs to succeed in today’s marketplace? There’s only one answer to that: to create your own style instead of following trends. It is impor-tant to have a clear design lan-guage that will remain attractive over time and also works on an international level. I strongly be-lieve that we have achieved this in an exemplary fashion with the new ŠKODA Octavia.
If we said design is important, but not everything, would you tend to agree?Absolutely. It’s about creating a logical and plausible emotional connection between a car’s physical appearance and its in-ner values. And that’s precisely what ŠKODA is all about: inner values. It is our job as designers to make them visible.
When Jozef Kabaň talks about cars, it sounds like a declaration of love.
His words are full of passion.
“I can’t help it,” he says, by way of explanation, “I just love cars.”
Clear lines, clean surfaces, attention to detail – Jozef Kabaň and his team aimed explicitly for a ‘car with style’.
-
Shaping the Company’s future
In summer 2012, during works holidays at the main Mladá Boleslav plant, prepara-tions got underway for the start of produc-tion of the ŠKODA Rapid. Construction of a new engine testing centre was also sched-uled to begin in nearby Česana in autumn. At the Vrchlabí plant, meanwhile, a state-of-the-art transmission production facility was completed in late 2012: At ŠKODA AUTO, clearly, all signs point to innovation and growth.
Extraordinary goals require extraordinary efforts: ŠKODA aims to increase global sales to at least 1.5 million vehicles per year by 2018 – a target that cannot be reached without considerable effort. Investments in production, logistics, research and develop-ment, and employee training are all on the agenda. Current figures confirm the momentum behind the growth of ŠKODA AUTO: In the more than 20 years since ŠKODA AUTO be-
came part of the Volkswagen Group in 1991, a total of almost CZK 250 billion has been in-vested in the Czech company. In 2012 alone, the Company invested CZK 20.56 billion in property, plants and equipment, with focus on its European sites. ŠKODA AUTO was re-cently named ‘Investor of the past two de-cades’ by the Czech Ministry of Industry and Trade in partnership with the Czech Invest Agency and the Association for Foreign In-vestment.
Expansion of production capacity at the Mladá Boleslav plant
The Mladá Boleslav plant has been set up for the start of production of the third generation of the successful ŠKODA Octavia model and the new compact sedan, the ŠKODA Rapid. The new class within the ŠKODA model range is positioned between the existing ŠKODA Fabia model and the new ŠKODA Octavia, which are also built on site. Substantial expansion and compre-hensive modernisation is needed to allow up to 1,200 vehicles per day to be built on the Rapid and Octavia lines alone. Once expansion has been completed, a total capacity of up to 2,400 vehicles per day, which includes ŠKODA Fabia production at the site, will be available at the main plant in Mladá Boleslav. The two new models, the ŠKODA Rapid and, naturally, the new ŠKODA Octavia, the brand’s top-selling model, will play a decisive role in successful implementation of the ŠKODA growth strategy, which calls for delivery of at least 1.5 million vehicles per year to customers by 2018, including many new buyers worldwide.
Investments
2012 – A ŠKODA yEAR IN REVIEW16
The ŠKODA global growth strategy impacts many different areas.
On its way to the next level, the Company is adding production and storage capacity,
updating IT and logistics networks and training staff in the relevant fields.
172012 – A ŠkodA year in review
-
Expansion of axle and engine production at Mladá Boleslav plant
ŠKODA is also making broad investments in new manufacturing technologies and gradually increasing capacity at many plants and in many areas to meet the de-mands of the ŠKODA model offensive. This especially applies to the main plant in Mladá Boleslav, where production capacity for front and rear axles is being opti-mised through expansion measures. The production line has been extended to a total length of 60 metres, fully modernised and the level of automation increased, to boost capacity for rear axle production from 1,000 to 1,700 axles per day. As part of its investment programme in the Czech Republic, ŠKODA AUTO has also begun production of new petrol engines at the Mladá Boleslav plant at a rate of up to 2,200 units of 1.2 and 1.4 TSI engines per day. These engines are lighter, enabling lower fuel consumption and emissions.
Start of ŠkodA Yeti production in Russia
On 6 December 2012, ŠKODA launched production of the ŠKODA Yeti in collaboration with Volkswagen Russia and the Russian automobile manufacturer, GAZ Group, at the Nizhny Novgorod plant. The timing could not have been better: Demand for the ŠKODA Yeti climbed by almost 111 per cent year-on-year in Russia in 2012. In prepa-ration for the start of production in Nizhny Novgorod, the ŠKODA Yeti had been produced here as an SKD model since late 2011. The new ŠKODA Octavia will also be built at the same facility from mid-2013 onwards.
18 2012 – A ŠkodA year in review
Transmission manufacture in Vrchlabí
The Vrchlabí plant, which for-merly built the ŠKODA Octavia and, until the end of last year, the ŠKODA Roomster, will now manufacture the modern, highly- innovative DQ200 seven-speed dual clutch transmission. The new training centre for transmis-sion assembly, logistics and qual-ity labs will help make Vrchlabí one of the most modern trans-mission production facilities in the entire Volkswagen Group. The plant was chosen to build the new transmission in 2011, and no fewer than 1,000 units per day have been produced here since September 2012. Capacity is set to increase by 50 per cent from mid-2013. ŠKODA Roomster pro-duction resumed at the Kvasiny plant in January 2013.
opening of new ‘Lean Centre’ in Mladá Boleslav
ŠKODA AUTO also sent a clear signal with the opening of its new ‘Lean Centre’ in Mladá Boleslav. With four floors, more than 5,600 m2 of space, the new ‘Lean Centre’ is the largest training centre of ŠKODA AUTO in the Czech Republic. The focus here is on employee training in the context of the Company’s global growth strategy. Employees need to learn how to make processes simpler, more efficient and more environmentally-compatible. Theoretical and practical courses in assembly, body construction and process optimisation for production and administration are offered for suppliers as well as ŠKODA em-ployees. According to Michael Oeljeklaus, Board of Management member for Production and Logistics, the new Lean Centre will help secure the long-term growth and competitiveness of the Company.
192012 – A ŠkodA year in review
opening of the redesigned ŠkodA Muzeum
There has also been substantial investment in the ŠKODA brand: 26 November 2012 saw the of-ficial opening of the redesigned ŠKODA Muzeum in Mladá Boleslav, where selected ŠKODA auto-mobiles are presented in a 1,800 m2 multimedia landscape, offering a totally new perspective on more than 117 years of fascinating company histo-ry. The redesigned, remodelled museum will play a key role in future ŠKODA brand communications.
Construction of new engine testing centre in Česana
The new engine testing centre in Česana will give additional impetus to the more-than-100-year tradition of ŠKODA en-gine development and production. “ŠKODA is establishing itself more than ever as an additional competence centre for engine development within the Group,” states Chairman of the Board of Management Prof. Dr. Winfried Vahland at the official foundation-laying ceremony on 25 September 2012. The initial construction phase, with 21 new engine and com-ponent testing bays at its core, is scheduled for completion by late 2013. With this project ŠKODA AUTO will create 40 new jobs. It represents one of the largest development in-vestment projects in the Czech Republic currently.
20 2012 – A ŠkodA year in review
Expansion and modernisation of parts centre
The parts centre in Mladá Boleslav is being expanded and completely modernised for future tasks. The total area of 50,000 m2 will be doubled to more than 100,000 m2. Once com-pleted, the warehouse, with eleven aisles of fully-automated 40-metre-high storage bays will be one of the tallest buildings in Mladá Boleslav. Around 500 employees will be able to process up to 24,000 orders a day from around the world. The current range of parts and accessories will be increased by 50 per cent by 2018 to include 214,000 different parts.
New IT centre
Another of the key investments of ŠKODA AUTO is the new IT centre in Mladà Boles lav, with close to 200 computer racks and a total of almost 2,500 data storage and data processing servers. The new system provides seven ŠKODA AUTO and Volkswagen Group production locations, as well as 106 import companies world-wide and 330 ŠKODA dealers in the Czech Republic and Slovakia, with the neces-sary IT support. This increased performance will boost energy efficiency by 30 per cent compared with the old IT centre. Further expansion is possible at any time.
212012 – A ŠkodA year in review
Smallest ŠKODA makes a big impact
Young singles, seniors and families look-ing to buy a second or third car – these are the target customers for the most compact model in the ŠKODA line-up, the ŠKODA Citigo. The sixth model line of ŠKODA is built to appeal to urban drivers who appreciate a compact, agile and safe car that makes the best possible use of its space. After its debut in the Czech Republic as three-door version in November 2011, the car was soon named ‚Best City Car’ and ‚Internet Car of the Year’. The five-door model was officially presented as a world premiere at the Geneva Motor Show in March 2012. The ŠKODA Citigo will play a key role in the ŠKODA growth strategy, and was designed to appeal to new target groups and custom-ers worldwide. Compliance with the latest
safety standards was also a high priority. The success of these efforts was confirmed by the car’s top five-star rating in the Euro NCAP crash test, which established the ŠKODA Citigo as one of the safest vehicles in its class. Highly-efficient engines also make the ŠKODA Citigo one of the most fuel-effi-cient options in the small car segment. This is particularly evident in the ultra-efficient Green tec version of the ŠKODA Citigo, which boasts an impressive fuel consumption of only 4.1 l/100 km and low emissions of 96 g CO2/km.
ŠKODA is also taking a new approach to communications with the ŠKODA Citigo – for example partnering with well-known DJ and producer Tiësto and launching a new mo-bile ‘ŠKODA MEET’ app, targeted at young people. The appeal of the new ŠKODA Citigo was af-firmed by the success of two special editions on display at last year’s annual gathering of car buffs at Lake Wörthersee in Austria: Both the ŠKODA Citigo Rally and the ŠKODA Citigo DJ Car on show there were a big hit with fans – and not just with tuning enthusiasts.
ŠKODA Cit igo
The crowd has fun with the Rally version of the SKODA Citigo at the 2012 Wörthersee car meet. It became a major attraction for all car enthu-siasts and tuning fans present.
Sustainabili t y
For a greener futureSustainable development has long been both an aspiration and an obligation for ŠKODA AUTO.
Now, the Company has launched the GreenFuture project to entrench sustainability even more firmly within
the organisation. A steering committee, reporting directly to the Board of Management,
manages all sustainability activities relating to products, production and processes. This puts ŠKODA AUTO
in position to implement the Group Strategy aimed at making the Volkswagen Group the most
sustainable automotive company in the world by 2018.
He has one of the most exciting jobs there is at ŠKODA AUTO currently. As head of the newly-created GreenFuture project, Pavel Vacek is responsible for making sus-tainability even more of a priority at ŠKODA AUTO. He looks forward to this challenging and complex task: “We have ambitious goals at ŠKODA AUTO – for our model offensive, our growth targets, and also for our sustain-ability management,” he explains. Vacek aims to bundle all of the Company’s sustainability activities together for maxi-mum impact. At the same time, new goals will be defined and pursued: “Sustainability is a complex issue that concerns all divisions of the Company and all hierarchical levels.”
He adds: “Our task covers not only a wide range of topics, but also a tremendous depth. That is what makes it so fascinating. It also shows just how big a challenge we face with GreenFuture.”The major significance of sustainability for ŠKODA AUTO – and therefore for the Green Future project – was underlined by Chairman of the Board of Management Prof. Dr. h.c. Winfried Vahland in the foreword to the cur-rent Sustainability Report: “A healthy envi-ronment, good working and living conditions and a stable economic framework are all essential to our success. Responsible con-duct is therefore fundamental to securing the future of our Company.” The latest Sus-tainability Report also charts new territory for ŠKODA AUTO: Although this is the third report of its kind, it is the first to follow the internationally recognised guidelines of the Global Reporting Initiative and therefore of-fer the degree of transparency now expect-ed at international level.
“Minimising environmental impact”
GreenFuture focuses on topics like resource conservation, recycling and emissions re-duction. In line with its Group Environmental Principles, this specifically means reducing the CO2 emissions of the new vehicle fleet and, on the production side, significantly lowering energy and water consumption, as well as waste volumes and emissions. The principle behind this is ‘prevention, then recovery, then disposal.’ Michael Oeljeklaus, ŠKODA Board of Management member for Production and Logistics elaborates: “We must minimise environmental impact as far as possible – from vehicle development all the way through to professional recycling. With GreenFuture, we have established this as a standard within the organisation.”
2012 – A Škoda year in review22
As a sustainably responsible company, ŠKODA AUTO sets high standards for pro-duction in particular. Optimised pollution protection, water consumption, ground-water protection and waste prevention are relevant in this area. Project manager Vacek regards production as a focal point for the work of GreenFuture: “Further optimisation of production processes is a top priority. We see plenty of potential to enhance environ-mental protection and reduce energy con-sumption in this area.”Use of the latest technology will facilitate this: In October 2012, ŠKODA AUTO installed an ultra-energy-efficient PXL servo press system for stamping sheet metal parts at its Mladá Boleslav plant. What is special about this system is that the energy released from the stamping process can be reused. In con-tinuous operation, this consumes around 15 percent less energy.
All areas of production are assessed for their potential for environmental protection, which is then exploited as quickly as pos-sible: For example, the EDIS project (Czech abbreviation for Ekologická Doprava Interní ŠKODA) launched in 2011, which aims to re-duce internal transport between Company locations through process optimisation, and limit environmental impact by introducing electrically-powered trailers.
Product responsibility is a high priority
Environmental considerations play an im-portant role in production at ŠKODA AUTO, and also, traditionally, in the products them-selves. ŠKODA vehicles have had a high level of efficiency, low fuel consumption and low emissions for many years. More than 50 ve-hicles in the current ŠKODA model line-up produce less than 120 g CO2/km. Any poten-tial for enhancing environmental compatibil-ity is consistently exploited, and therefore weight reduction to minimise consumption and emissions is also a priority in all new vehicle development. For example, the new, third-generation ŠKODA Octavia, launched in early 2013, weighs up to 102 kg less than the previous model, thanks to consistent light-weight technology, advanced body and en-gine construction, the use of high-strength and extremely high-strength steels and careful choice of materials.
Since 2010, there has been at least one GreenLine variant in each model series that offers even higher standards of efficien-cy and environmental-compatibility at the same level of comfort and performance. ŠKODA also pursues the goal of lower fuel consumption and emissions with the Green tec package, which is available throughout the entire model range and includes an au-tomatic start/stop system, brake energy re-generation and tyres with optimised rolling resistance for even greener, more fuel-effi-cient driving.ŠKODA also has the key future topic of e-mobi lity firmly in its sights. It is current-ly testing a fleet of ten electric-powered ŠKODA Octavia Green E Line cars in every-day driving conditions. Initial findings will become available over the course of 2013. The Company aims to have low-emission vehicles ready for series production as soon as possible. The test fleet is an important milestone along this route.
2012 – A Škoda year in review 23
Product responsibility does not end for ŠKODA with the sale of its cars, but extends through the end of the vehicle lifecycle and beyond: All current new vehicles are at least 85% recyclable and 95% recoverable. ŠKODA AUTO attaches particular importance to the use of recycled, i.e. recovered materials, to replace increasingly scarce and expensive primary raw materials.
‘Employer of the Decade’
In an international company like ŠKODA AUTO, what applies to production and prod-ucts is also relevant in the social field. As one of the leading companies in the Czech Republic, ŠKODA AUTO has a special respon-sibility towards its employees, their families and people living in the communities where its plants are located. Issues like vocational and professional training, industrial safety and health protection, work-life balance and equal opportunities are the cornerstones of its responsibility towards employees. Low attrition rates and an above-average length of service of 12.5 years are proof of its success and confirm the attractiveness of ŠKODA AUTO as an employer.
In 2012, as in previous years, ŠKODA AUTO was again honoured as one of the most attractive employers in the Czech Republic. The ‘Employer of the Decade’ award pre-sented by the Czech Employers’ Association not only recognised the Company’s qualities and attractiveness as an employer, but also the long-term stability of its human resour-ces policy.
ŠKODA AUTO as a ‘good neighbour’
ŠKODA AUTO has traditionally focused its social responsibility on areas where the Company has operations. Its social and hu-manitarian projects are often collaborations with renowned foundations and charitable organisations. For example, ŠKODA AUTO has partnered for many years with the ‘Healthy Clowns’ project, which arranges for clowns to visit and entertain seriously-ill children throughout the Czech Republic in hospitals and at home.
However, the Company is not just active in the social field in the Czech Republic. Through its subsidiaries, ŠKODA AUTO is al-so involved in a large number of projects fo-cused primarily on children’s health and ed-ucation, for example, in Germany and India. ŠKODA AUTO has been committed to road safety and ensuring safe school routes, in particular, for many years and works with a number of Czech municipalities in this field. The Company also extends this commitment beyond the borders of the Czech Republic through its ‘Playful ŠKODA’ website, where children can learn everything they need to know about road safety in a fun way in Czech, Slovakian, English or Russian.
Promoting culture at Company locations
At ŠKODA AUTO, responsibility towards the community also includes contributing to cultural life in the areas where it is based. ŠKODA AUTO has a long tradition of cultural commitment in the Czech Republic, where the Company supports leading cultural insti-tutions, such as the Czech Philharmonic and the National Theatre in Prague, the National Museum and the National Technical Museum. ŠKODA AUTO also sponsors a variety of ac-claimed international events, such as jazz concerts in Germany, for instance. The Com-pany’s increasing internationalisation is also reflected in its growing cultural commitment in India, for example, where ŠKODA vehicles are produced at plants in Aurangabad and Pune. In addition to its active support for lo-cal school projects, ŠKODA AUTO established
Res
ourc
e-Saving Recycling
Environmental P
rote
ctio
nEm
ission-Reductions
GreenFuture
Sustainabili t y
24 2012 – A Škoda year in review
the annual ‘ŠKODA Prize for Indian Contem-porary Art’ in 2010, with an endowment of one million rupees, to promote promising young local artists. Each year, thousands of visitors attend the exhibition showcasing the work of these young artists, for whom it is often their first opportunity for exposure and recognition.
‘One car – one tree’
ŠKODA AUTO launched another, slightly more unusual initiative back in 2007: Since then, the Company has planted a tree for every ŠKODA vehicle sold in the Czech Re-public, under the motto ‘One car – one tree’. This means that more than 363,000 new trees have so far been planted – including more than 58,000 in 2012 alone. This has a positive impact not only on the landscape, but also on the local microclimate and bird and game populations throughout the Czech Republic.
Responsibility as a success factor
At all levels, responsibility at ŠKODA AUTO is not confined to pronouncements, but focus-es on putting it into practice. Sustainable development goes hand in hand with envi-ronmental responsibility. That is why, for Chairman of the Board of Management Prof. Dr. h.c. Vahland, there can be no alternative to sustainable development for ŠKODA AUTO, particularly in times of economic growth: “The more successful we become, the greater our responsibility.”
The ŠKODA 120-gram fleet: More than 50 models currently boast CO2 emissions of less than 120g/km.
79 g CO2/km4.4 m3 natural gas / 100 km
87 g CO2/km3.3 l Diesel / 100 km *
114 g CO2/km4.4 l Diesel / 100 km
Citigo 1.0 l – 50 kW MPI CNG
Octavia 1.6 l – 81 kW TDI GreenLine
Superb 1.6 l – 77 kW TDI GreenLine
2012 – A ŠKODA year in review 25
* This applies for the GreenLine version, which will be introduced onto the market in the course of the year 2013.
26 2012 – A ŠKODA year in review
272012 – A ŠkodA year in review
The new class of ŠKODA makes its world debut at the 2012 Paris Motor Show: Two ŠKODA Rapid cars drive onto the stage – one me-tallic-blue, the other white – and into the gleaming stage-lights amid a rain of camera flashes and thunderous applause. It is immediately apparent that this car will set a new benchmark: First, there is the fresh design language that will define all future ŠKODA models: mod-ern, elegant and powerful – with a clear tornado line and a new logo. And then there is the obvious commitment to redefining spacious-ness in the compact class: impressive interior dimensions inside a compact body just 4.48 m long, 1.71 m wide and 1.46 m high. In the words of ŠKODA Chairman of the Board of Management Prof. Dr. Winfried Vahland: “The ŠKODA Rapid is a compact sedan with the qualities of an estate car.”
Between ŠKODA Fabia and ŠKODA Octavia
The ŠKODA Rapid is positioned between the ŠKODA Fabia and the ŠKODA Octavia – visibly larger than the ŠKODA Fabia, but more com-pact than the ŠKODA Octavia. The new ŠKODA offers a huge amount of space for a compact-class vehicle, with legroom and headroom that are best-in-class. It also boasts the largest luggage compart-
ment in its segment with a volume of 550 litres and a maximum load of up to 580 kg. This makes the ŠKODA Rapid the ideal car for modern families – a goal which ŠKODA engineers and designers consistently pursued from the start. The ŠKODA Rapid can easily and comfortably accommodate up to five occupants, and with the largest tailgate in its class, there is still plenty of room for shopping bags and a stroller. It also guarantees typical ŠKODA value for money – both from a pur-chase and maintenance perspective.
Variants for local markets
Reasonable pricing and everyday drivability are important consider-ations for a new car purchase in growth markets, too – and that is exactly where the new ŠKODA Rapid comes in: The new model is designed not only for success in Europe, where deliveries began in October 2012, but also to appeal to new buyers worldwide. Custom-ised variants specially adapted to local needs are offered in markets with the strongest growth potential, such as China, Russia and India. An Indian variant is already on the market, with a Chinese version to follow in 2013 and a Russian ŠKODA Rapid in 2014. The ŠKODA Rapid must quickly gain a foothold in these major markets. The signs look
New goals call for a new approach – and the new ŠKODA Rapid is just such an approach.
With this car, ŠKODA is redefining the compact sedan – offering generous space in an extremely compact package,
a totally new ŠKODA design language and many detail solutions presented for the first time.
Positioned between the ŠKODA Fabia and the new ŠKODA Octavia, the ŠKODA Rapid is consistent in design
and ‘Simply Clever’ at the same time.
ŠKODA Rapid
ŠKODA Rapid –a new class of ŠKODA
28 2012 – A ŠkodA year in review
promising: In India, for example, the locally-built ŠKODA Rapid variant was named ‘Family car of the year’ shortly after its market launch at the end of 2011. According to Vahland, “The launch of the ŠKODA Rapid means we are firing up the next stage of the model offensive of ŠKODA AUTO. The ŠKODA Rapid has a central importance for our global growth strategy and will provide us with added momentum on international markets.”
Strong growth potential for compact sedans
The importance of the new model to ŠKODA cannot be overstated. The figures clearly illustrate why the ŠKODA Rapid is such an im-portant pillar of the ŠKODA growth strategy: The high-volume com-pact segment, in which the ŠKODA Rapid is sold, accounts for 36 per cent of the global automotive market. Sedans make up 42.3 per cent of the vehicles in this class, and industry experts expect world -
wide sales of this vehicle type to climb by about 50 per cent by 2020. Expectations for the ŠKODA Rapid are clear: It is to become the brand’s second key volume model, alongside the ŠKODA Octavia. To assure the necessary production capacity, significant investment has been made in the expansion and modernisation of production facilities at the main plant in Mladá Boleslav, where the ŠKODA Rapid is built.
Modern, no-frills design
For a vehicle to do well in different markets worldwide with differ-ent demands, clear brand recognition is essential. The designers of the ŠKODA Rapid faced a difficult task: As the first representative of the new ŠKODA design language, the ŠKODA Rapid needed to be instantly recognisable as a ŠKODA, but with its own model-spe-cific identity and a style that would satisfy the differing aesthetic
Modern, minimalist design with lots of practical details
at an affordable price: The new ŠKODA Rapid sets new standards
in the compact sedan segment in many areas.
292012 – A ŠkodA year in review
standards of global buyers. The solution is a modern look with-out frills and a design that sup-ports the vehicle’s high standard of functionality. Head designer Jozef Kabaň summarises his job as “creating space in its most at-tractive form”.
Technology at the service of people
The highest technological stan-dards must also be fulfilled.
‘Tech nology at the service of people’ was the motto for ŠKODA de-velopment engineers working to realise a car with the highest level of functionality and latest safety standards, the lowest weight pos-sible and reliable technology for advanced, environmentally-friendly engines. The emphasis was not on what was technically possible, but on what the customers are demanding. Attention was focused on systems for optimum active and passive safety. As a result, the ŠKODA Rapid went on to earn the top five-star rating in the Euro NCAP crash test for its outstanding level of safety, confirming it as one of the safest vehicles in its class.The chassis was another focal point for ŠKODA engineers. A long wheelbase and especially rigid body structure form the basis for the ŠKODA Rapid’s excellent driving dynamics and chassis design. This guarantees superb handling and exceptional suspension com-fort – all with a view to the high level of everyday drivability a vehicle like the ŠKODA Rapid needs. The ŠKODA Rapid also offers an exem-
plary choice of engines: The latest generation ensures excellent fuel economy and low emissions with attractive performance. The Green tec package, which is optional for all TSI and TDI engines, further optimises fuel economy and enables even lower emissions, without any perceptible loss of performance.
Clever – even in the details
The ŠKODA Rapid demonstrates its everyday suitability in other fea-tures, too: Nifty little details, like the ice scraper in the fuel filler cap and plenty of pockets and storage compartments inside make it a typical ŠKODA ‘Simply Clever’ car. The new vehicle features up to 19 signature ‘Simply Clever’ solutions, including other firsts, such as a safety vest pouch under the driver’s seat, a waste holder in the side door to keep the interior tidy or the reversible floor covering for the luggage compartment – one side with attractive carpet for daily use, the other with a washable rubber covering for transporting dirtier items.
Modern interpretation of traditional virtues
With the ŠKODA Rapid, ŠKODA has taken an important step towards the future. But its engineers and developers have not forgotten their ŠKODA ‘genes’. The ŠKODA Rapid is an attractive, high-quality car, practical and well-thought-out, which offers exceptional space and value for money – in other words, a true ŠKODA. But at the same time, it reinterprets traditional ŠKODA virtues in a thoroughly modern style and shows the way for all of the vehicles ŠKODA will introduce onto the market in the near future as part of its ambitious model offensive.
A fascinating glimpse behind the
scenes of model development:
A clay model of the ŠKODA Rapid was presented at the 2012 Designblok
festival in Prague.
ŠKODA Rapid
30 2012 – A ŠkodA year in review
Breaking down bordersDynamic expansion in growth markets and
major challenges in Western Europe – that is the current
scenario in the automotive sector. The fast-growing markets
of China, India and Russia are a decisive factor.
In a situation like this, long-term success depends on a clear strategy:
ŠKODA AUTO is building on the Volkswagen Group’s
solid foundation in these countries – with its ambitious model
offensive and international growth strategy,
the course is set for successful global development.
The figures are impressive: By the end of 2012, five years after the first ŠKODA rolled off the assembly line at Shanghai Volkswa-gen, the brand cracked the 750,000-deliver-ies mark on the Chinese market. About 235,700 units were sold in 2012 alone – an increase of more than seven per cent over the previous year and more than eight times the volume of customer deliveries just five years ago. In other words, China has become the largest single market for ŠKODA in a short period of time and will play a crucial role in reaching its sales goal of at least 1.5 million ŠKODA vehicles per year by 2018.
This development is quite remarkable, con-sidering that ŠKODA has launched only its ŠKODA Fabia, ŠKODA Octavia and ŠKODA Superb models in China so far. ŠKODA Chair-man of the Board of Management Prof. Dr. h.c. Winfried Vahland refers to this develop-ment as a “unique success story”. Three addi-tional models with huge sales potential will also be introduced onto the Chinese market in 2013: the new ŠKODA Rapid, the ŠKODA Superb Combi and the ŠKODA Yeti. With a total of five model series then available, ŠKODA aims to increase its market share and set new sales records. This will also require
Internationalisation
312012 – A ŠkodA year in review
235,700 cars delivered to customers
in 2012
2011 – 2012
+ 7.1 %
a targeted increase in the brand’s produc-tion capacity and the expansion of its retail network from 400 to 600 dealerships over the medium term – both of which have al-ready begun.When the Volkswagen Group embarked on its ‘Chinese adventure’ in the mid-1980s through a joint venture with Shang-hai Tractor and Automobile Corporation (STAC), the kind of success ŠKODA is cur-rently experiencing in China would have seemed unthinkable. Now, aging factories have been replaced with one of the world’s most state-of-the-art automotive produc-
tion facilities, which testify to the success of those initial, often perilous pioneering efforts. Contemporaries recall the difficul-ties of the early days of automobile man-ufacture in China, but also the enthusiasm and talent of local Chinese partners: “With-in the shortest possible time, they got bet-ter and better, and faster and faster at as-sembling cars – faster than anywhere else in the world even – and that is how it still is today.” Since then, Shanghai Volkswa-gen has become an important and reliable partner for ŠKODA and a major contributor to the brand’s success in China.
China
32 2012 – A ŠkodA year in review
ŠKODA Rapid world premiere in India
In India, ŠKODA has laid a foundation for further growth in recent years and is deter-mined to leverage the potential there. The Indian sales of ŠKODA increased by 14.2 per cent year-on-year, with around 34,300 vehi-cles delivered to customers in 2012. As ex-pected, the ŠKODA Rapid, launched in late 2011, played an important part in this. Built at the Pune plant – and therefore ‘in India for India’ – this compact sedan serves an important market segment on the subcon-tinent and meets Indian customers’ grow-ing demands for spacious smaller cars. The highly-respected Indian auto magazine TOP GEAR named the ŠKODA Rapid ‘Family car of the year’ shortly after its market launch. The ŠKODA Rapid is the perfect complement to the current Indian model line-up of ŠKODA Fabia, ŠKODA Laura (the Indian variant of the ŠKODA Octavia), ŠKODA Yeti and ŠKODA Superb. ŠKODA AUTO has been active in the Indian market since 2001, when it opened its own production facility in Aurangabad. Since then, the ŠKODA brand has reported stead-ily increasing sales and market share in this key growth market. 2012 was the most suc-cessful year to date for ŠKODA on the Indian
subcontinent in terms of deliveries. Further investment is planned in conjunction with the Volkswagen Group: Local suppliers are to be more closely integrated and additional local employees recruited. A total of 90 deal-erships form a reliable backbone for the solid market presence of ŠKODA in India and will ensure the brand’s continued success in the Indian market.
Ambitious goals for Russia
ŠKODA has operated in Russia as ŠKODA AUTO RUSSIA since 2004. Over that period, Russian sales of ŠKODA vehicles have risen more than eightfold to reach around 99,100 vehicles in 2012. This represents a market share of more than 3.6 per cent and an in-crease of 33.7 per cent over the previous year. ŠKODA Chairman of the Board of Manage-ment Prof. Dr. h.c. Winfried Vahland wants Russia to play an even bigger role in the fu-ture. For him, the Russian market is “a pillar of our international growth plans”. Winfried Vahland announced a series of measures to boost ŠKODA sales in Russia, currently one of the fastest-growing markets worldwide.In Russia – as in China and India – the new ŠKODA Rapid will play an important role in
fulfilling the Company’s ambitious growth targets. The ŠKODA Rapid will be built at the Kaluga plant as the brand’s sixth model se-ries in Russia in 2014. It will establish itself as a volume model alongside the successful ŠKODA Octavia, which currently accounts for more than half of all ŠKODA vehicles sold in Russia. Another milestone on the road to even greater success in Russia will be the start of production of the ŠKODA Yeti in cooperation with the Russian GAZ Group at its plant in Nizhny Novgorod. The ŠKODA Yeti is already in strong demand also in other countries. Its high level of everyday driveability in ex-treme weather conditions, both on-road and off, make this the ideal car for the Russian market. No fewer than 17,000 ŠKODA Yeti vehicles were sold to customers in Russia in 2012.The ŠKODA Yeti is also the focus of a mar-keting campaign to strengthen the pres-ence of ŠKODA in the Russian market. A special-edition ŠKODA Yeti Sochi has been designed for the 2014 Winter Olympic Games in Sochi, Russia, which ŠKODA is supporting as part of Volkswagen Group Russia’s spon-sorship commitment. The new variant was officially presented for the first time at the Moscow International Motor Show in August/
Internationalisation
2011 – 2012
+ 14.2 % India
34,300 cars delivered
to customers in 2012
332012 – A ŠkodA year in review
September 2012. This Winter-Olympic spon-sorship is the perfect complement to the brand’s long-standing sponsorship of the Ice Hockey World Championships – a sport which is especially popular in Russia and the home country of ŠKODA AUTO, the Czech Republic. The Olympic sponsorship will help raise the brand profile in Russia.Despite its focus on growth regions, ŠKODA AUTO is also targeting continued growth in its traditional markets. Amid a difficult overall economic situation in a number of Europe-an countries and a shrinking total European market, ŠKODA AUTO was able to increase its share of the total European market to more than 3.9 per cent in 2012, with the sale of more than 619,500 vehicles.
Effective internationalisation more than short-term success
For ŠKODA AUTO, successful internation-alisation is not just about short-term sales success. A deeper understanding of a mar-ket’s people, history, culture and customs helps avoid conflict and makes it easier to work with local employees. The Company has established an ambitious training and support programme to enhance the social and intercultural competences of
ŠKODA employees working abroad, who are known as Foreign Service Employees (also see interview with Board of Management member for Human Resources Bohdan Wojnar). In the context of increasing interna-tionalisation, the familiar slogan of ŠKODA, ‘Clever engineering with a human touch’, takes on additional significance for the future.
International by tradition
Both Václav Laurin and Václav Klement, the founders of the company L&K, from which ŠKODA AUTO was born, showed curiosity and courage in discovering new markets for their vehicles. Their success proved them right: L&K motor cars were exported all the way to Russia and Japan. Much of what was learned in the early years of the automobile industry at the start of the twentieth century has become part of the ŠKODA brand tradi-tion – and can now be rediscovered in the recently re-opened ŠKODA Muzeum in Mladá Boleslav. Even though much more rigorous planning goes into building the global pres-ence of a modern automobile brand these days, a whiff of adventure remains – every time borders come down and new markets open up. The same principle still holds true today: Who dares wins.
2011 – 2012
+ 33.7 %
99,100cars delivered to customers in 2012
Russia
34 2012 – A ŠkodA year in review
ŠKODA Board of Management member for Human Resources Bohdan Wojnar
“Employees are ambassadors of our brand abroad”
Highly-motivated, well-educated employees with the ability to work anywhere are the
backbone of the ŠKODA growth strategy. At the same time, growth and internationalisation
present special challenges for personnel planning and development.
Mr Wojnar, where do you see the focus of personnel development at ŠKODA AUTO in the future?Our Company’s increasing international ori-entation requires appropriate vocational and professional training for employees and means that we have to step up our efforts to recruit globally-minded ‘local talent’ at our various locations.
What have you done so far?We are especially proud of the dynamic growth of our programme for employees abroad that we launched several years ago. We have been able to double the number of employees working abroad. 2012 we reached the mark of 200 employees working in other countries – more than ever have been em-ployed before.
Where do these Foreign Service Employees work?For example in Russia, China and India. But we also have FSEs working in Germany, Po-land and Slovakia. And, of course, we have foreign employees coming to work for us in the Czech Republic, too. This kind of exchange benefits our corporate culture tremendously.
What special qualifications does a Foreign Service Employee need?Employees who work abroad for ŠKODA
AUTO need good social skills and they need to be especially open-minded when it comes to dealing with other cultures – in addition to the relevant job-specific know-how. The ability to work in a team, assertiveness, self-assurance and a high degree of adapt-ability are all important factors – not to men-tion initiative and a strong commitment to the task at hand and loyalty to our Company.
The job of an employee abroad isn’t always easy – living far from home, facing new and unfamiliar challenges every day. Why is working abroad still such an attractive prospect?
For precisely that reason: New impressions and challenges are always a valuable per-sonal experience – something no one can take away from you. That can be extreme-ly beneficial for young people later in their career. And, remember, our employees aren’t left to fend for themselves while they are abroad – we give them all the support they could possibly need.
What kind of support exactly?We set up a ‘Partner Support Programme’, for example, to help with the delegate’s family and personal needs. All of our FSEs are guar-anteed reintegration and an appropriate job when they return to their home base. We handle healthcare and many other aspects. We do a lot to prepare our employees for their work abroad – and we have a whole range of support measures for their time abroad and after.
Where does the FSE programme go from here?ŠKODA AUTO has a clear strategy that calls for continued growth in international mar-kets over the coming years. This will make the FSE programme even more important. We want our employees to be ambassadors for the brand abroad. Enabling them is a vital obligation for us, and we will continue to channel all our expertise into this task in the future.
Inter view
352012 – A ŠkodA year in review
ŠkodA Highlights 2012New models, new motorsports successes,
new sales records: For ŠKODA AUTO, 2012
was one of the most eventful years in its recent
history: Epic rally wins, a promising start to
a unique model offensive and new sales records
in markets worldwide marked the route of
a successful automobile company on its way
to the next level. Following a brief overview
of the year’s key events.
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352012 – A ŠKODA year in review
36 2012 – A ŠkodA year in review
January 10 ŠkodA sets more new records — ŠKODA announces initial figures for 2011 with a new delivery record: Brand sales climbed by 15.3 per cent to a new high of 879,200 vehicles. Global market share rose to more than 1.4 per cent.January 30 14 million ŠkodA cars — A total of 14 million ŠKODA vehicles have been built since the Company was founded in 1895. The 14-millionth car rolled off the assembly line at the Kvasiny plant in the Czech Republic: a ŠKODA Superb 2.0 TDI ‘Laurin & Klement’ special edition. Almost two-thirds of the ŠKODA cars built have been manufactured and sold in the last 20 years, including four million in the past five years alone. 2011 set a new sales record of almost 879,200 vehicles. The Czech brand has an ambitious growth target: to deliver at least 1.5 million ŠKODA cars a year to customers worldwide by 2018.
February 13 ŠkodA Citigo preview in Lisbon — In test drives and a special press presentation, media guests from around the world get a sneak peak at the new ŠKODA Citigo, and an exclusive look at the five-door version of this sixth ŠKODA model series. The five-door version was officially presented at the Geneva Motor Show in March and went on sale in Europe in May. The ŠKODA Citigo was named ‘Car of the Year 2012’ in the mini car segment shortly after his market launch in the Czech Republic.
February 20 2012 IRC season gets un-derway in the Azores — ŠKODA starts the 2012 season of the Intercontinental Rally Challenge (IRC) at the Azores Rally. Its 111 years of motorsports history creates quite an obligation: ŠKODA plans to go all out to bring the IRC brand title back to Mladá Boleslav for the third consecutive year. 13 races lie ahead of the teams in the new IRC season.
March 2 More than 363,000 trees planted — The environmental project ‘One car – one tree’ of ŠKODA exceeds all expectations with more than 363,000 trees planted in just six years. For every ŠKODA it sells, the Company plants a tree in its home country. More than 58,000 trees were planted in 2012. Thanks to this project, strong ŠKODA sales also benefit nature directly. Priority is given to areas particularly at risk for water and wind erosion and landslides.
March 6 Big day in Geneva: ŠkodA Citigo meets Tiësto — Make way for the new ŠKODA Citigo: The innovative small car makes its first major show appearance at the Gene-va Motor Show, accompanied by well-known DJ and producer Tiësto. Both three-door and five-door ŠKODA Citigo models drive onto the stage under the motto ‘Meet Citigo’.
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372012 – A ŠkodA year in review
04 05 06May 4 ŠkodA Fabia: Success times three million — ŠKODA builds its three-millionth ŠKODA Fabia. The car in question – a white ŠKODA Fabia GreenLine produced at the main plant in Mladá Boleslav – is the ultra-efficient, especially environmentally- friendly version of the Fabia, ordered by a customer in Germany.
May 24 E-octavia presented to Prague Technical University for testing — A test fleet of ten electric-powered ŠKODA Octavia Green E Line cars proves its efficiency and practicality in everyday driving conditions: Among those to receive a test vehicle is the faculty of transportation at the Technical University of Prague, which will study the vehicle’s suitability as part of a research project into the use of electric vehicle in city centres. Over the course of the year, additional ŠKODA E-Octavia vehicles will be tested by various institutions and compa-nies, including the Prague Castle Admin-istration, the power utilities ŠKO-ENERGO and ČEZ, ŠkoFIN, the Czech Ministry of the Environment and the University of Eco-nomics, Prague as well as TÜV SÜD Czech. Two families in the Czech Republic are also testing the electric Octavia privately.
April 2 Record-breaking sponsorship of Ice Hockey World Championships — For the 20th consecutive year, ŠKODA serves as the main official sponsor of the Internation-al Ice Hockey Federation (IIHF) world cham-pionships, and provides a fleet of 45 ŠKODA Superb estate cars for the 2012 champion-ships in Sweden and Finland. The IIHF is an excellent platform for ŠKODA to present itself to international sports fans. Its 20th anniversary as main sponsor also earns it a place in the Guinness Book of Records – for the longest-running sponsorship of a world championship sporting event. April 17 Preview of China model offen-sive — ŠKODA previews its upcoming model offensive in China at AUTO CHINA 2012 in Beijing. The MissionL concept car offers a foretaste of the new ŠKODA compact sedan, which will be built by Shanghai Volkswagen from 2013 on and sold in China. With the launch of its new compact sedan and the internationally-successful ŠKODA Yeti SUV, the brand will introduce its fourth and fifth model series to China in 2013, targeting further growth in its largest single market.
June 18 ŠkodA AUTo once again top Czech company — ŠKODA AUTO is once again named ‘most important company in the Czech Republic’ in the Czech Top 100 ranking. ŠKODA AUTO has topped the ranking of Czech companies 15 times since it was introduced in 1994. The rating considers factors such as product quality, social responsibility and attractiveness as an employer alongside companies’ key economic data.June 22 500,000th Superb drives off kvasiny assembly line — The ŠKODA Superb begins a new chapter in its success story: With a total of 500,000 vehicles produced, the Czech manufacturer’s flag-ship reaches a new high. The 500,000th vehicle, a white Superb Combi Laurin & Klement edition, rolls off the assembly line at the ŠKODA plant in Kvasiny. The ŠKODA Superb is sold in 85 countries worldwide, and, since 2009, also in China, where it has become one of the most popular models in its segment within three years of its market launch. In 2011, more than 40 per cent of all Superb cars sold were delivered to custom-ers in China.
38 2012 – A ŠkodA year in review
July 5 A successful five years in China — ŠKODA celebrates five years of successful automobile production in China. 60 months after the start of production of the ŠKODA Octavia at Shanghai Volkswagen (SVW), the Czech manufacturer can be proud of its impressive performance in China, with the delivery of around 750,000 vehicles across the country. China is the largest single market of ŠKODA AUTO and accounts for around 25 per cent of global ŠKODA sales. The current number of roughly 400 local ŠKODA dealerships is set to increase to more than 600 over the medium term.
July 9 Presentation of ŠkodA Rapid in Bratislava — ŠKODA presents its new model line, the ŠKODA Rapid compact sedan, for the first time in Vienna and Bratislava. The new member of the ŠKODA model family is positioned between the ŠKODA Fabia and the new ŠKODA Octavia. An attractive car for the whole family, the ŠKODA Rapid will rep-resent the ŠKODA brand in the fast-growing compact segment.July 12 Record deliveries in first half of 2012 — ŠKODA sets a new record in the first half of 2012: Worldwide customer deliver-ies rose 8.4 per cent between January and June 2012 to just over 493,000 units (from 454,700 units in the first half of 2011). July 27 Intensive construction during works holidays — As part of its growth strategy, ŠKODA AUTO is expanding and modernising its three Czech plants during works holidays. The main plant in Mladá Boleslav is busy preparing the ramp-up of new ŠKODA models, while the Vrchlabí plant in Northern Bohemian is gearing up for pro-duction of the DQ200 dual clutch transmis-sion. The Kvasiny factory is also undergoing modifications to its body shop, paint shop, assembly and other areas.
August 23 Start of series production for ŠkodA Rapid — ŠKODA launches pro-duction of the new ŠKODA Rapid compact sedan at its main plant in Mladá Boleslav. Its youngest model series will be introduced onto the European markets from October.
August 24 Special ŠkodA Yeti model presented in Moscow — The special edition ŠKODA Yeti Sochi debuts at the Moscow International Motor Show. With all-wheel drive, a high-performance engine and seven-speed dual clutch automatic transmission, this version was specially developed to cope with the often extreme road conditions and terrain in the Russian market. The special model was named after the city of Sochi on the Black Sea, which will host the 2014 Winter Olympic Games.
September 24 ŠkodA Rapid premieres at Paris Motor Show — The ŠKODA Rapid makes its world debut at the Paris Motor Show. This is the first time a ŠKODA that fully reflects the brand’s new design lan-guage vehicle is presented to the general public. The ŠKODA Rapid will play an im-portant role in the ŠKODA growth strategy: Country-specific versions make it a particu-larly attractive prospect for Europe and the growth markets of India, China and Russia.
September 25 ŠkodA builds new engine testing centre — An important milestone in engine development at ŠKODA: The foun-dation stone is laid for a new engine testing centre with 21 new engine and component testing bays. As part of its growth strate-gy, ŠKODA is investing more than EUR 34 million in the expansion of its existing Tech-nology and Development Centre in Česana, close to corporate headquarters in Mladá Boleslav. This is one of the largest devel-opment investments in the Czech Republic currently. The first phase of construction will be completed in late 2013.
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392012 – A ŠkodA year in review
10 11 12November 4 IRC hat-trick — In a repeat of the two previous years, ŠKODA brings home both the IRC driver’s and manufacturer’s titles in 2012. As in 2011, Andreas Mikkelsen and teammate Ola Fløene are once again the fastest team in the competition, with ŠKODA also taking second and third place. In the manufacturer’s championship, ŠKODA secures the title three weeks before the season officially ends.
November 26 ŠkodA Muzeum reopens as multimedia brand experience — Opening day for the new ŠKODA Muzeum in Mladá Boleslav after roughly nine months of re-modelling: The completely redesigned brand showcase takes visitors on an interactive, multimedia journey through the Company’s history. The varied and fascinating tour ex-plores 117 years of ŠKODA AUTO – as told by 46 vehicles, hundreds of exhibits, films, wit-ness accounts and documents, presented in a modern way over 1,800 m2 of exhibition space in historic ŠKODA production halls. This very special museum also includes the new multifunctional ‘Laurin & Klement Forum’ and the trendy café ‘VÁCLAV’.November 28 Top five-star safety rating for ŠkodA Rapid — The new ŠKODA compact sedan earns the top rating in the Euro NCAP crash test for its high level of safety. The rating acknowledges the ŠKODA Rapid’s outstanding performance in the areas of occupant protection for adults and children, pedestrian protection and safety support systems.
october 6 24,500 visitors to ŠkodA plant kvasiny — Successful open house at the ŠKODA plant in Kvasiny: Around 24,500 visitors – ŠKODA employees and their families and friends, interested residents and fans of the brand – enjoy a glimpse behind the scenes of ŠKODA production in Eastern Bohemia. ŠKODA Superb and ŠKODA Yeti models are built in Kvasiny, and will be re-joined in early 2013 by the ŠKODA Roomster.
october 15 ŠkodA plant Vrchlabí begins dQ200 production — ŠKODA starts produc-tion of the DQ200 dual clutch transmission for the Volkswagen Group at its Vrchlabí plant. The state-of-the-art direct shift gearbox, also known as a DSG, is built into Volkswagen, Seat and Audi models as well as ŠKODA brand vehicles. Vrchlabí’s initial capacity of 1,000 transmissions per day will increase to up to 1,500 per day by mid-2013. Together with the Volkswagen Group, the Czech manufacturer will invest around EUR 170 million to prepare the plant, which will concentrate on component manufacture only from the beginning of 2013, for high-ly-complex DSG-production.
december 3 ŠkodA builds new, more efficient petrol engines — ŠKODA launch-es production of new petrol engines at its main plant in Mladá Boleslav. Maximum production capacity for the 1.2 and 1.4 TSI variants of the EA211 series will reach 2,200 units per day. The direct injection engines will be built into ŠKODA, Audi, Seat and Volkswagen models. The advantages of the new engines include lighter weight, better fuel economy and lower emissions.december 6 ŠkodA Yeti production underway in Nizhny Novgorod — ŠKODA begins production of the ŠKODA Yeti at the GAZ plant in Nizhny Novgorod – which becomes the second location in Russia to build ŠKODA vehicles.
december 11 Introducing the new ŠkodA octavia — One of the most important dates of the year: ŠKODA presents the new Oc-tavia to the global press in Mladá Boleslav. The ŠKODA Octavia is the ‘heart of the ŠKODA brand’ – in fact, the Company’s rise over the past two decades is closely linked to the success of this model. The third generation of the ŠKODA bestseller will set new standards for spaciousness, function ality, safety and comfort-enhancing tech nology, as well as design and value for money in its segment.
40 2012 – A ŠkodA year in review
Inter view
ŠKODA Board of Management member for Technical Development Frank Welsch
‘Simply Clever’ – a reality throughout the Company
Mr Welsch, ‘Simply Clever’ is a slogan we hear a lot in connec-tion with ŠKODA cars. What does ‘Simply Clever’ really mean?We at ŠKODA make everyday driving as enjoyable and easy as possible for our customers – af-ter all, life is complicated enough already. So, we pack all of our know-how into our cars, and find practical smart solutions that have a big impact in day-to-day driving situations.
Such as?Take the brand new, third-gen-eration ŠKODA Octavia: It is the perfect example of our Compa-ny’s ‘Simply Clever’ philosophy – and so is the new compact lim-ousine ŠKODA Rapid, which we also presented recently.
You mean the ice scraper in the fuel filler cap?That clever little idea was what people talked and wrote a lot about at the premiere of the ŠKODA Rapid. How often have you hunted in vain for the ice scraper the first time it snows?
What else?The ŠKODA Octavia also features innovative fastening elements which hold the cargo at every position in the boot; a practical storage for reflective vest under the driver’s seat; a multimedia holder that was already a hit in the new ŠKODA Citigo; a par-ticularly large and practical tail-gate; a storage for the rear par-cel shelf behind the back seats; a reversible floor covering for
the luggage compartment – at-tractive carpet on one side and washable rubber on the other, great for muddy shoes after a walk in the woods…Just tell me when to stop!
So ‘Simply Clever’ is more than just a bright idea dreamed up by a copywriter?Definitely! ‘Simply Clever’ has become something of a way of life for us – and certainly more than just a snappy marketing slogan. We at ŠKODA, we don’t just apply the ‘Simply Clever’ ap-proach to our products – it is more of a fundamental principle for the whole company. ‘Simply Clever’ is practised throughout the Company and is our guiding principle for development.
ŠKODA automobiles represent a high level of functionality and
everyday drivability, remarkable spaciousness and outstanding value for money.
But a ŠKODA is only a ŠKODA if it has a little something extra:
‘Simply Clever’ solutions that make day-to-day driving just a bit more enjoyable.
412012 – A ŠkodA year in review
Clever little details: ŠKODA automobiles surprise time and again with nifty, ‚Simply Clever’ ideas that help make everyday driving easier – such as holders for essential accessoires, an ice scraper in the fuel filler, a 230 V socket behind the armrest, an always reachable emergency vest below the driver’s seat and sophisticated solutions for securing items in the luggage compartment.
42 2012 – A ŠkodA year in review
Histor y of ŠKODA AUTO
Restoring former glory: The differ-ent phases in the restoration of an automobile – from ‘forgotten oldie’ to ‘museum gem’ – are on show for all to see in the redesigned ŠKODA Muzeum. The image shows the chassis of a ŠKODA 422 Convertible from 1931 prior to restoration.
432012 – A ŠkodA year in review
Take away a brand’s past and you take away its future. When ŠKODA became part of the Volkswagen Group in 1991, it was clear to those in positions of responsibility that the proud history of the ŠKODA brand must be handled with the utmost respect. Many believe this carefully-considered approach is the key to the success of ŠKODA today and the starting point for the Company’s strong
growth momentum in recent decades. This appreciation of the ŠKODA AUTO tradition is extremely relevant even today. “You can’t overtake without checking your rear-view mirror,” maintains Michael Oeljeklaus, ŠKODA Board of Management member for Pro-duction and Logistics, in his welcoming re-marks at the official opening of the com-pletely redesigned and remodelled ŠKODA
Muzeum on 26 November 2012: There can be no progress without looking back, no growth without acknowledging where you have come from. More than 300 guests attend the Museum opening. On the big screen, a film shows ŠKODA history in reverse – starting with the current 2012 models and then racing back to when Václav Laurin and Václav Klement
The ŠKODA brand has one of the longest traditions in the automobile industry. The eventful and, at times,
moving history of the ŠKODA brand can now be experienced at the redesigned ŠKODA Muzeum in Mladá Boleslav,
where visitors embark on a fascinating journey through more than 117 years of personal mobility.
The fascination of tradition
44 2012 – A ŠkodA year in review
founded the Company in 1895 – interspersed with special highlights up on stage. The ŠKODA Muzeum focuses on people and their stories, as well as cars and technolo-gy – because they are the ones who make ŠKODA history. The Museum tells of their special ties to ŠKODA. A stop is made in 1957, for example: Ap-plause for former Miss USA, Charlotte Shef-field, who is driven onto the stage in a mint-green ŠKODA Felicia Convertible. Now in her seventies, the former beauty queen made the trip from Salt Lake City especially to attend the ceremony. With tiara and regal cloak over her shimmering blue dress, she smiles out from the car: “A beautiful, beau-tiful car,” she beams. In 1957, the recent-ly-crowned Miss USA posed for a ŠKODA Felicia advertising campaign in front of Prague Castle and other locations. At that time, a trip behind the Iron Curtain was a real adventure for a young American wom-an. Now, 56 years later, Charlotte Sheffield has donated her pink ‘Miss America’-dress to the ŠKODA Muzeum, as a souvenir of this early and unconventional form of cross-cul-tural collaboration during the cold war. The historic piece now has a prominent position in a glass showcase entitled ‘Flirting with the class enemy’.
Brand showcase
There are many more fascinating stories to ŠKODA AUTO. The early years, two world wars, decades of socialist planned economy, and, ultimately, the alliance with Volks wagen in 1991, with steady growth since – there is certainly plenty of material to choose from. The museum planners’ approach is as fol-lows: Besides displaying historic cars, the aim is to use stories to generate enthusiasm for ŠKODA – from smaller exhibits in display cases through to modern touchscreen infor-mation systems.
Steeped in 117 years of production history, the location of the newly-opened museum in the very first production hall of ŠKODA at headquarters in Mladá Boleslav provides an ideal framework in which to present the Company: Inside the building, there is no trace of its former function. Now, bright colours set the tone, and large expanses of glass focus attention on the historic vehi-cles: The new ŠKODA Muzeum has become a dazzling showcase for the ŠKODA brand.The new exhibition architecture was de-signed and implemented by the Jangled Nerves team from Stuttgart, headed by Prof. Thomas Hundt. It was especially important to the experienced museum architect and communications expert to create a concep-tual link between history and the modern day: “For me, the exciting and unique thing about this new museum is the combination of the historic building and modern interior design.” His exhibition concept aims to trans-form the museum into a time machine: The special characteristics of each period must be made accessible on an intellectual and emotional level. The number of actual vehi-cles displayed was dramatically reduced to achieve this. The models now on show are there to represent a specific era and recre-ate a slice of brand history. Divided into three sections, ‘Tradition’, ‘Evo-lution’ and ‘Precision’, the Museum provides various points of access to ŠKODA history. ‘Tradition’ shows selected ŠKODA automo-biles in the context of their specific time and events. ‘Evolution’ presents development lines and milestones in automotive history. The ‘Precision’ area is particularly interest-ing: Four vehicles in four different stages of restoration illustrate the main phases on the way from an unrestored classic to a top-class car. One of the lucky finds on dis-play is a rusty ŠKODA 422 Convertible from 1931. Next to it, already partly dismantled and ready for rebuilding, stands a so-called
The new Museum is the ŠKODA brand showcase: The Company’s long and often turbu-lent history is now displayed in an appropriate setting in the completely remodelled and redesigned premises.
Evidence of 117 years of automotive history: Old L&K and ŠKODA brand logos over the years (centre).
Timelessly beautiful cars: A ŠKODA Felicia Convertible from 1957 (bottom left) and the 1923 L&K 300 (bottom right).
The fascination of tradition
Histor y of ŠKODA AUTO
452012 – A ŠkodA year in review
46 2012 – A ŠkodA year in review
‘skeleton’. The ‘metamorphosis’ continues on a third lifting platform, which presents the first step in the restoration of a partially re-built ŠKODA 430 Convertible from 1932. And, finally, the ‘gem’ of the collection, an elegant dark-blue ŠKODA 645 Faux Convertible from 1930, which experts have already fully rebuilt in a total of 3,800 hours of work between 1998 and 2001.
Rich history with a happy future
The history of ŠKODA AUTO has always been inextricably linked to its two, very different, company founders, Václav Laurin and Václav Klement: the engineer Laurin, hardworking and a little reserved, and Kle-ment, the worldly-wise marketing expert, originally a bookseller, who joined forces to set up a bicycle factory in Mladá Bole-slav. Why and how the Company was born is also explained in detail at the Museum. The story of ŠKODA AUTO begins in late 1895, as the two embarked on their adven-ture together with just two workers and an apprentice in a tiny 120 m2 workshop. The Company expanded quickly, switched to production of motorcycles, and, thanks to the inventiveness and entrepreneurial courage of its two founders, soon became a highly-respected automobile company, initially under the name ‘Laurin und Kle-ment’, or L&K for short.
The merger with the Plzeň-based mechan-ical engineering company, ŠKODA, in 1925, provided the Company with urgently-need-ed capital and secured its future. For a while, vehicles sported both brand logos. Crucial investment to expand standardised assembly-line production transformed the founder-driven, small-series carmaker into a financially-powerful volume manufacturer – which it remained, right up until World War II. Then, like many automobile manufacturers in other countries, ŠKODA also had to switch from civil automobile production to wartime production.As ŠKODA braved a difficult post-war period and the political bureaucracy of the planned economy, its creative engineers continued to set innovative trends in vehicle devel-opment until the mid-1960s. However, by this time, ŠKODA was increasingly suffering under a centrally-directed model policy, lack of capital, and ultimately under the failing competitiveness of its cars abroad, until, af-ter the Velvet Revolution, Volkswagen Group acquired ŠKODA in 1991, heralding a new era for the Company.
ŠKODA reveals its treasures
The brand’s strong sense of tradition is not only on display in the newly-opened Museum, but also at the many renowned vintage-car events, where ŠKODA proudly
The fascination of tradition
Histor y of ŠKODA AUTO
Company forefathers Václav Laurin (centre left) and Václav Klement (far left) laid the foun-dation for the first 117 years of eventful automotive history at ŠKODA. The completely reno-vated Museum in Mladá Boleslav uses a wide range of exhibits to tell its moving story in detail. The Museum’s large window fronts also provide an inter-esting glimpse from outside. The so-called ‘type case’ (right) brings the rich ŠKODA model history to life.
472012 – A ŠkodA year in review
shows off its treasures, often to the amaze-ment of spectators. In countries on the other side of the former Iron Curtain, par-ticularly Germany, Austria, Switzerland and France, years of political division in Europe made it hard for car enthusiasts to follow vehi-cle development at ŠKODA. Now, they are of-ten astonished to discover attractive ŠKODA automobiles they knew nothing about. ŠKODA attended 34 classic car meets and vintage-car rallies in different countries in 2012 alone. Motorsports has been part of the ŠKODA brand identity ever since dare-devil Narcis Podsedniček raced his L&K motorcycle from Paris to Berlin in 1901, and so the ŠKODA collection includes many at-tractive historic race cars and bikes, as well as sedans and coupés – which need to be maintained and driven from time to time. By participating in vintage-car rallies today, ŠKODA recalls the names of its many famous factory drivers, such as Václav Vondřich, Ot-to Hieronimus, Jaroslav Bobek, Václav Bobek, Václav Blahna and John Haugland, and re-markable cars like the ŠKODA Supersport, the ŠKODA 1100 MB, the ŠKODA 130 RS and the ŠKODA F3. In 2012, for example, a 1932 ŠKODA 860 and a ŠKODA Popular Monte Carlo from 1937 com-peted in the famous Schloss Bensberg Clas-sics. Also, at the ‘Hamburg-Berlin-Klassik’ car rally, one of the ŠKODA entries among the starting line-up of 180 vintage cars was a
48 2012 – A ŠkodA year in review
51–year-old ŠKODA Felicia Convertible. Most recently, ŠKODA entered four of its rarest classic cars in the ‘Classic Days’ in Mag-ny-Cours, France: one of only three ŠKODA RS 200 built in 1974; a ŠKODA 1000 MB from 1964; a ŠKODA 1000 MB from 1968; and one of only two remaining ŠKODA 1100 OHC cars from 1957. One of these incredibly elegant cars – which could easily be ascribed to a racing car manufacturer from Italy – also took part in the Silvretta Classic, where it was a hit, as always, with motorsports fans.
A museum for the whole family
This motorsports tradition is also very much in evidence – both optically and acousti-cally – at the new ŠKODA Muzeum, where videos are used to simulate a racing ambi-ence. Two of the most successful rally cars in ŠKODA history, a modern-day ŠKODA Fa-
bia Super 2000 and a ŠKODA 130 RS from 1977, are on display. The new-look ŠKODA Muzeum offers something for everybody – for car enthusiasts, families and customers collecting their new ŠKODA fresh off the assembly line in the customer centre next door, as well as tourists. There is plenty to capture the imagination of younger visitors, too, who may only recently have discov-ered the ŠKODA brand, and many surprises in store for older guests, who remember ŠKODA from the time before it became part of the Volkswagen Group. With its new museum, ŠKODA AUTO is not only showcasing the attractiveness of its own brand. It is also putting Mladá Boleslav, for the past 117 years the town at the heart of the Czech manufacturer, which now does business in more than 100 countries world-wide, firmly on the map as a major European automobile manufacturing centre.
ŠKODA and racing have always belonged together. Nowadays, ŠKODA likes to show off its past treasures at vintage-car meets and international rally events for historic cars, including an absolute rarity: one of only two remaining ŠKODA 1100 OHC cars at the Silvretta Classic (top image). Also pictured: the ŠKODA Popular Monte Carlo (top right) and a ŠKODA 130 in Moscow’s Red Square.
The fascination of tradition
492012 – A ŠkodA year in review
A truly historic performance
Motorspor ts
After two successful years in 2010 and 2011, ŠKODA goes on to win a record-breaking
three major international competitions in 2012 – with victories in the Intercontinental Rally Challenge (IRC),
the European Rally Championship (ERC) and the Asia-Pacific Rally Championship (APRC). ŠKODA
also notches up a hat-trick in the IRC with its third straight win since 2010 in both drivers’ and manufacturers’
championships – in addition to six national rally championships over the course of 2012. The team
is supremely confident: After all, it has the strength of more than 111 years of motorsports history behind it.
50 2012 – A ŠkodA year in review
Friday, 12 October 2012: Everything is set for the start of the San Remo Rally, the last-but-one race of this year’s Intercontinental Rally Challenge (IRC). This potentially decisive race could determine whether ŠKODA Motorsport’s winning team takes home the presti-gious IRC manufacturers’ title for the third consecutive year. San Remo is known as ‘la Città dei Fiori’, the city of flowers, but, on this particular day, no-one has eyes for the beautiful floral displays along the Ligurian Riviera di Ponente – and certainly not ŠKODA Fabia Super 2000 factory drivers Jan Kopecký and Juho Hänninen, or, for that matter, Michal Hrabánek, Head of ŠKODA Motorsport. Four special stages over 85 kilometres, including a 44-kilometre stage by night, are on the programme for the first day of the two-day race. Absolute concentration is needed, and the tension is written across the drivers’ faces. Changing weather conditions and fog be-fore the race are making the support team nervous: On a day like to-day, the right choice of tyres is often the difference between victory and defeat. The race proves challenging throughout the two days of the com-petition, and many teams fail to cross the finishing line. But it is Jan Kopecký who ultimately comes in second – enough to secure overall victory for ŠKODA: The 2012 IRC manufacturers’ title once again goes to ŠKODA Motorsport. Michal Hrabánek stands off to one side. His face shows relief and delight at the same time: “This hat-trick is a truly historic achieve-ment. We are now the most successful brand in the history of the IRC. That is the best possible reward for the amazing work of all our team members,” enthuses Hrabánek, clearly moved. The scene changes: 4 November, Cyprus. The 2012 IRC rally season is drawing to a close and headed towards its culmination. In a repeat of last year, the final race of the season will decide the winner of the IRC drivers’ championship. Last year, Andreas Mikkelsen and co-driver Ola Fløene overtook the leading ŠKODA pair of Juho Hänninen and Mikko Markkula in a dra-matic season finish. This time, the two Norwegians, Mikkelsen and Fløene, start the race as favourites, with a clear lead in the drivers’ competition. Can the 23-year-old Mikkelsen handle this unfamiliar role and summon up his usual concentration? Cyprus is considered one of the most challenging courses in the IRC racing cycle, with narrow, mostly winding roads and unpredictable, rapidly-changing weather conditions.
But today, history is in the making: With a resounding second place in Cyprus, Andreas Mikkelsen and Ola Fløene secure overall victory in the IRC drivers’ championship and become the first team to accom-plish the same feat two years in a row. At the end of the 2012 season, with a total of 27 wins since 2009, the Czech automobile manufacturer is the undisputed IRC record holder. ŠKODA Motorsport’s exceptional successes in recent years are no co-incidence. They are the product of sustained hard work. Only those who have followed the ŠKODA support team for some time know just how hard they have worked. It is not just the cars and drivers who have to deliver top performance – there is no room for compromise behind the scenes, either. The demands on team members are enor-mous: Quick thinking and mental strength, even under extreme con-ditions, are crucial for every member of the ŠKODA Motorsport team – mechanics, drivers and logistics managers alike. Everyone is pushed to their limits – and sometimes beyond – on a day-to-day basis. They seem to need that, too. At ŠKODA Motorsport, the extreme soon becomes the norm: The IRC may be the most prestigious com-petition on the international rally circuit – but it is not the only one ŠKODA Motorsport competes in. In 2012, ŠKODA also takes part in – and wins – the European Rally Championship (ERC) and the Asia-Pacific Championship (APRC).The ŠKODA team’s performance in the APRC creates something of a sensation. With the team of Australian Chris Atkinson and Belgian Stephane Prevot winning the drivers’ competition and thanks to its outstanding performance over the entire series, ŠKODA became the winner in the prestigious APRC manufacturers’ category. The ŠKODA factory team of Juho Hänninen and Mikko Markkula looks just as comfortable in the ERC, and are already the clear winners with two races to go. ŠKODA Motorsport takes this opportunity to intro-duce a talented new member of its racing team, young Finnish driver Esapekka Lappi, at the Rally of Poland: Only 21 years old, Lappi has
At home on rally courses around the
world – and often victorious: Success is virtually guaranteed
with the ŠKODA Fabia Super 2000.
ŠKODA Teams deliver a convincing perfor-
mance at the rallys in Ypres and along the Bosporus as well as
in San Remo and the Rally of Poland
(from left to right).
512012 – A ŠkodA year in review
Motorspor ts
No sweet without sweat: The impressive successes
of the ŠKODA rally team in recent years are the product
of the clear commitment of ŠKODA to its own racing
tradition and high degree of professionalism at all levels. Victorious again in the IRC 2012: ŠKODA celebrates a one-two-three in Ireland. In 2012, ŠKODA Motorsport repeats its success of the previous year and the year before and has now won the IRC manufacture’s title three times in a row.
52 2012 – A ŠkodA year in review
already made quite a name for himself in rallying: His seven wins over the course of 2012 have earned him the Finnish Rally Championship and a certain recognition in the rallying arena. However, this time everything is new for the likeable Finn: the car, the team – and the course. What follows is a clear demonstration of class: Newcomer Lappi and co-driver Janne Ferm secure the win in Poland first time out. The new team wins 10 out of 13 special stages. Victory, it seems, was never in any doubt. ŠKODA Fabia Super 2000 teams not only compete in international races – in 2012, ŠKODA also won a total of six national champion-ships: Reigning Czech champion and ŠKODA driver Jan Kopecký suc-cessfully defended his title with co-driver Pavel Dresler, and five oth-er ŠKODA Fabia Super 2000 drivers also won national competitions: Raimund Baumschlager (Austria); Mark Wallenwein (Germany); Aleks Humar (Slovenia); Luca Rossetti (Turkey); and Dimitar Iliev (Bulgaria). What makes ŠKODA Motorsport so successful? Team spirit and a will to win are important, without a doubt – as well as having someone like Michal Hrabánek in charge, to draw together the many individual strands into an effective whole. But there seems to be ano ther, barely quantifiable and yet still extremely effective element that goes into the winning combination, something that is taken for granted, and that habit has made an unspoken truth: the power of the brand’s own history. When ŠKODA celebrated its 110-year in-volvement in motorsports in 2011, Chairman of the Board of Manage-ment Prof. Dr. Winfried Vahland talked about how its commitment to motorsports helps convey the message of the ŠKODA brand. With today’s drivers like Jan Kopecký, Andreas Mikkelsen and Esapekka Lappi, there can be little doubt that its message is being heard and understood.
Motorspor ts
Winner of three international
competitions and six national
championships, and once again
champion in the prestigious
IRC manufacturer’s category:
ŠKODA raises the bar with
a string of successes in 2012.
Night shift: During night stages, service teams also have to work after dark (above and centre) – and the work doesn’t end when the cars cross the finishing line. Here the ŠKODA racing team at an autograph session (below).
532012 – A ŠkodA year in review
Michal Hrabánek, Head of ŠkodA Motorsport
“Tradition-minded, team-spirited and hungry for success”
Michal Hrabánek has been at the Head of the ŠKODA Motor sport division, with its long tradition, for more than five years. Before that, the 44-year-old, an expert in technical de-velopment, was responsible for the global sales of ŠKODA Gen-uine Accessories. ŠKODA sent the first clear signal of things to come back in 2009. 2010 marked wins in the manufactur-er’s and driver’s championships of the Intercontinental Rally Challenge (IRC). The ŠKODA team then went on to repeat those victories in 2011, and also added the world championship title. 2012 brought even more success for ŠKODA Motorsport than the previous years, making it the most successful year to date in long history of ŠKODA Motorsport.
Mr Hrabánek, if you had to describe the special qualities of ŠKODA Motorsport, what words spring to mind?Tradition-minded, team-spirited and hungry for success.
What role does the almost legendary motorsports tradition of ŠKODA play in its sustained winning streak over the past three years?
Tradition may not be a tangible aspect of our everyday work, but it is still important. ŠKODA Mot-orsport’ long history essentially gives us the strength and com-posure we need to master day-to-day challenges.
How do the mostly young drivers handle this tradition?The drivers tend to concentrate on the job at hand. Being a ral-ly driver is one of the toughest jobs around, and there’s not much time for contemplation or reflection. What tradition does mean to them is this: They know the entire team has decades of rally experience behind it, and that they can rely on that in the future – tradition provides a kind of security, so to speak.
What does this job mean for you personally?It is, quite simply, the realisa-tion of a long-standing person-al dream. I couldn’t imagine any better job! I can contribute my own experience, I have a top-rate team and the best working environment I could possible hope for.
And what about the successes of recent years – what do they mean to you?
Of course, they mean a lot to me. But most of all, they are impor-tant to the team, as confirma-tion of its outstanding work. But I’m aware that success is also an obligation: As they say, after the race is before the race. We can’t afford to take things easy. As soon as you get too comfort-able, that’s when things start to get difficult. We’ve worked hard to get where we are today. But it is just as much of a challenge to stay at the top – and we will do everything we can to stay there.
ŠKODA took part in the Asia-Pacific Rally for the first time in 2012. What was the aim of that?First of all, curiosity and love of a new challenge. Second, it was a strategic decision: Our aim was to raise the visibility of the ŠKODA brand in this important growth market. Winning on our first time out should have achieved that.
What makes ŠKODA Motorsport so strong?There are many aspects: For a start, the ŠKODA Fabia Super 2000 is a first-class, race-prov-en rally car that is now in its fifth season. We also have top drivers and an outstanding ser-vice team. But the most crucial aspect, I believe, is the smooth
interaction between all our pro-cesses: Much of our strength comes from established, well-oiled processes, combined with the ability and willingness to improve that rally racing always requires. Another important factor is our close cooperation and consultation with ŠKODA AUTO – with Technical Devel-opment, in particular – and with the relevant departments of the Volkswagen Group. Here also, our work is characterised by a strong team spirit. That is basi-cally what successful rallying is all about: working as a team on all things, big and small, at na-tional and at international level.
What are your goals for ŠKODA Motorsport over the coming years?We always focus on what comes next – and that means upcom-ing races. We want to be as suc-cessful as possible again in 2013. That will require all our atten-tion. We aim to stabilise our cur-rent level of performance and, if we can, improve on it. Motor-sport will for sure continue to play an important role in the fu-ture. We are all working very hard in order to make the suc-cess story of ŠKODA Motorsport a lasting one.
2012 brought comfortable victories for ŠKODA in the IRC, European Rally Championship
and Asia-Pacific Rally Championship, not to mention six national rally championships.
Michal Hrabánek heads ŠKODA Motorsport. Under his leadership it has become the dominant force on the
international rallying scene. He talks about responsibility, passion and an uncompromising will to succeed.
Inter view
54 2012 – A ŠkodA year in review
ŠKODA model ser ies
Product portfolio
ŠkodA SuperbŠkodA Superb Combi
ŠkodA FabiaŠkodA Fabia Combi
Exceptional quality at an
unbeatable price in the upper
mid-size class – that is what the
ŠKODA Superb is all about.
Renowned for its spacious
interior, value for money and
economy, the contours of the
ŠKODA Superb are elegant, but
sporty. Common sense and
passion are rarely found in such
perfect harmony in a car.
With their impressive fuel
economy and efficient use of
space, the ŠKODA Fabia and
ŠKODA Fabia Combi have been
among the best-selling ŠKODA
models for years. Reliability,
highly-efficient engines and an
attractive price/performance ratio
make the ŠKODA Fabia the ideal
choice for those who particularly
appreciate everyday driveability
and value for money in a car.
ŠkodA Rapid
The ŠKODA Rapid compact family
sedan launched in Europe in
autumn of 2012 is the first ŠKODA
vehicle to fully implement the new
brand design language: clear,
precise and timelessly elegant.
The interior is extremely spacious,
with lots of clever details. The
ŠKODA Rapid, the youngest model
series of ŠKODA, sets the
standard in a new class for the
brand, the compact sedan
segment. With country-specific
versions for India and, in the
future, China and Russia, the
ŠKODA Rapid is also one of the
central pillars of the ŠKODA
growth strategy.
552012 – A ŠkodA year in review
ŠkodA octaviaŠkodA octavia Combi
The ŠKODA Octavia sedan and
Combi estate car are the ‘heart of
the ŠKODA brand’: No model in the
ŠKODA brand’s long history has
been more successful. The ŠKODA
Octavia has impressed with its
top-quality workmanship, timeless
design, ample space and high
degree of functionality since 1996.
ŠKODA is continuing this tradition
with the new model presented in
December 2012. The latest ŠKODA
Octavia is the best so far. As a car
that offers the qualities of a
mid-range vehicle for the price of a
compact car, the ŠKODA Octavia is
a class of its own.
ŠkodA Citigo ŠkodA Roomster ŠkodA Yeti
A small car with a big future: In big
cities in particular, the smallest
ŠKODA – the modern-looking
Citigo launched in 2012 – immedi-
ately captured the hearts of those
who value agility, economy and
safety in a car. With its many
surprising little details, the ŠKODA
Citigo epitomises the modern
concept of a clever city car that is
also fun to drive.
The ŠKODA Roomster is the most
surprisingly spacious of the ŠKODA
models. As the name suggests,
the ŠKODA Roomster was
designed for roominess – and
space is the key to its huge
success. Characterised by clear
design and exceptional interior
versatility, the ŠKODA Roomster
has been highly successful in the
compact minivan segment since
its debut in 2006.
With the launch of the ŠKODA Yeti
in 2009, ŠKODA immediately
captured a new market segment.
As one of the very first compact
SUVs on the market, the ŠKODA
Yeti not only caused a sensation
across Europe, but was also a
success in growth markets such
as Russia, India and – in the future
– China. With optional four-wheel
drive, the ŠKODA Yeti is also an
attractive choice for off-road
driving.
With seven model series, ŠkodA AUTo has the right car for different personal transport needs. All models share the same signature ŠkodA features of generous space, outstanding everyday drivability, top quality and impressive value for money.
Published by:© ŠKODA AUTO a.s., 2013Tř. Václava Klementa 869293 60 Mladá BoleslavCzech Republic
www.skoda-auto.com
ŠKODA Media Services – the app for iPhone and iPad
Key Financial Figures 2012
ŠKODA AUTO Group – Deliveries to customers year-on-year
2012
2011
939,202
879,184
ŠKODA AUTO Group – Sales revenues year-on-year (CZK million)
2012
2011
262,649
252,562
ŠKODA AUTO Group – Operating result year-on-year (CZK million)
2012
2011
17,917
18,257
ŠKODA AUTO Group – Number of employees year-on-year*
* Number of employees as at 31 December excl. temporary staff, incl. apprentices.
2012
2011
26,404
26,565
3
Contents
04 ŠKODA AUTO legal structure
04 Group workforce
06 KeyfiguresandfinancialresultsaccordingtoIFRS
(EURmillion)
08 KeyfiguresandfinancialresultsaccordingtoIFRS
(CZKmillion)
10 Consolidatedbalancesheet(CZKmillion)
10 Consolidatedprofitandlossaccount(CZKmillion)
12 ŠKODAproductionworldwide
14 Portfolioofmodelsmanufacturedworldwide
(asat31December2012)
16 Deliveriestocustomersbyregion
16 Deliveriestocustomers–largestmarkets
18 Deliveriestocustomersbymodel
20 ŠKODAProductportfolio
These key financial data include only selected financial information. To obtain a true and fair view of the financial position of the Company / The ŠKODA AUTO Group, of its financial performance, and of its cash flows, users shall refer to the financial statements included in the Annual Report 2012.
4
ŠKODA AUTO a.s.* registered office: Mladá Boleslav, Czech Republic
ŠKODA AUTO Deutschland GmbH
ŠKODA AUTO Slovensko, s.r.o.
Skoda AutoIndia Private Ltd.
OOO VOLKSWAGEN Group Rus
registered office: Weiterstadt, Germany 100% holding ofŠKODA AUTO
registered office: Bratislava, Slovakia 100% holding ofŠKODA AUTO
registered office: Aurangabad, India 100% holding ofŠKODA AUTO
registered office: Kaluga, Russia16.8% holding ofŠKODA AUTO
* In addition to OOO VOLKSWAGEN Group Rus, the company ŠKODA AUTO a.s. also has substantial influence in other associated companies. However, their impact on the consolidated entity‘s results is insignificant.
Group workforce
31. 12. 2012 31. 12. 2011 2012/2011
Parent Company – permanent employees 23,978 24,177 –0.8%
of which:
– Mladá Boleslav plant 19,559 19,691 –0.7%
– Vrchlabí plant** 938 860 9.1%
– Kvasiny plant 3,481 3,626 –4.0%
Parent Company – apprentices 810 759 6.7%
Parent Company – employees total* 24,788 24,936 –0.6%
Subsidiaries – permanent employees 1,607 1,622 –0.9%
Subsidiaries – apprentices 9 7 28.6%
Subsidiaries – employees total* 1,616 1,629 –0.8%
ŠKODA AUTO Group employees total* 26,404 26,565 –0.6%
* excl. temporary employees incl. apprentices, representing the number of employees as at 31 December
** As at 31 December 2012 Vrchlabí plant including VAD facility (transmissions)
5
ŠKODA AUTO a.s.* registered office: Mladá Boleslav, Czech Republic
ŠKODA AUTO Deutschland GmbH
ŠKODA AUTO Slovensko, s.r.o.
Skoda AutoIndia Private Ltd.
OOO VOLKSWAGEN Group Rus
registered office: Weiterstadt, Germany 100% holding ofŠKODA AUTO
registered office: Bratislava, Slovakia 100% holding ofŠKODA AUTO
registered office: Aurangabad, India 100% holding ofŠKODA AUTO
registered office: Kaluga, Russia16.8% holding ofŠKODA AUTO
* In addition to OOO VOLKSWAGEN Group Rus, the company ŠKODA AUTO a.s. also has substantial influence in other associated companies. However, their impact on the consolidated entity‘s results is insignificant.
Group workforce
31. 12. 2012 31. 12. 2011 2012/2011
Parent Company – permanent employees 23,978 24,177 –0.8%
of which:
– Mladá Boleslav plant 19,559 19,691 –0.7%
– Vrchlabí plant** 938 860 9.1%
– Kvasiny plant 3,481 3,626 –4.0%
Parent Company – apprentices 810 759 6.7%
Parent Company – employees total* 24,788 24,936 –0.6%
Subsidiaries – permanent employees 1,607 1,622 –0.9%
Subsidiaries – apprentices 9 7 28.6%
Subsidiaries – employees total* 1,616 1,629 –0.8%
ŠKODA AUTO Group employees total* 26,404 26,565 –0.6%
* excl. temporary employees incl. apprentices, representing the number of employees as at 31 December
** As at 31 December 2012 Vrchlabí plant including VAD facility (transmissions)
6
Key figures and financial results according to IFRS (EUR million)*
ŠKODA AUTO Group ŠKODA AUTO Company
2012 2011 2012 2011
Income Statement
Sales revenue EUR million 10,438 10,266 9,507 9,423
Gross profit EUR million 1,619 1,489 1,426 1,220
% of revenues 15.5 14.5 15.0 12.9
Operating profit EUR million 712 743 675 701
% of revenues 6.8 7.2 7.1 7.4
Profit before income tax EUR million 713 783 625 699
Profit before income tax-to-revenues ratio % 6.8 7.6 6.6 7.4
Profit for the year EUR million 611 652 527 582
Profit for the year-to-sales ratio % 5.9 6.4 5.5 6.2
Other Key Figures
Investment (without capitalised development expenses) EUR million 832 568 811 558
R & D expenditure EUR million 434 377 434 377
Net liquidity EUR million 1,511 1,838 1,351 1,608
* Presentation currency of ŠKODA AUTO Company / ŠKODA AUTO Group and functional currency of ŠKODA AUTO Company is the Czech crown (CZK). The items reported in EUR were translated from CZK at exchange rates of the European Central Bank according to the methodology of the Volkswagen Group.
7
Key figures and financial results according to IFRS (EUR million)*
ŠKODA AUTO Group ŠKODA AUTO Company
2012 2011 2012 2011
Income Statement
Sales revenue EUR million 10,438 10,266 9,507 9,423
Gross profit EUR million 1,619 1,489 1,426 1,220
% of revenues 15.5 14.5 15.0 12.9
Operating profit EUR million 712 743 675 701
% of revenues 6.8 7.2 7.1 7.4
Profit before income tax EUR million 713 783 625 699
Profit before income tax-to-revenues ratio % 6.8 7.6 6.6 7.4
Profit for the year EUR million 611 652 527 582
Profit for the year-to-sales ratio % 5.9 6.4 5.5 6.2
Other Key Figures
Investment (without capitalised development expenses) EUR million 832 568 811 558
R & D expenditure EUR million 434 377 434 377
Net liquidity EUR million 1,511 1,838 1,351 1,608
* Presentation currency of ŠKODA AUTO Company / ŠKODA AUTO Group and functional currency of ŠKODA AUTO Company is the Czech crown (CZK). The items reported in EUR were translated from CZK at exchange rates of the European Central Bank according to the methodology of the Volkswagen Group.
8
Key figures and financial results according to IFRS (CZK million)
ŠKODA AUTO Group ŠKODA AUTO Company
2012 2011 2012 2011
Income Statement
Sales revenue CZK million 262,649 252,562 239,101 231,742
Gross profit CZK million 40,898 36,606 35,885 29,977
% of revenues 15.6 14.5 15.0 12.9
Operating profit CZK million 17,917 18,257 17,004 17,224
% of revenues 6.8 7.2 7.1 7.4
Profit before income tax CZK million 17,934 19,275 15,712 17,155
Profit before income tax-to-revenues ratio % 6.8 7.6 6.6 7.4
Profit for the year CZK million 15,354 16,075 13,259 14,288
Profit for the year-to-sales ratio % 5.8 6.4 5.5 6.2
Other Key Figures
Investment (without capitalised development expenses) CZK million 21,102 14,150 20,558 13,900
R & D expenditure CZK million 10,952 9,367 10,952 9,367
Net liquidity CZK million 34,890 47,348 30,872 41,399
9
Key figures and financial results according to IFRS (CZK million)
ŠKODA AUTO Group ŠKODA AUTO Company
2012 2011 2012 2011
Income Statement
Sales revenue CZK million 262,649 252,562 239,101 231,742
Gross profit CZK million 40,898 36,606 35,885 29,977
% of revenues 15.6 14.5 15.0 12.9
Operating profit CZK million 17,917 18,257 17,004 17,224
% of revenues 6.8 7.2 7.1 7.4
Profit before income tax CZK million 17,934 19,275 15,712 17,155
Profit before income tax-to-revenues ratio % 6.8 7.6 6.6 7.4
Profit for the year CZK million 15,354 16,075 13,259 14,288
Profit for the year-to-sales ratio % 5.8 6.4 5.5 6.2
Other Key Figures
Investment (without capitalised development expenses) CZK million 21,102 14,150 20,558 13,900
R & D expenditure CZK million 10,952 9,367 10,952 9,367
Net liquidity CZK million 34,890 47,348 30,872 41,399
10
Consolidated balance sheet (CZK million)
31. 12. 2012 31. 12. 2011 2012/2011
Non-current assets 83,493 64,686 29.1%
Current assets 76,493 88,871 –13.9%
of which: deposits* 38,131 49,088 –22.3%
Total assets 159,986 153,557 4.2%
Equity** 90,906 81,211 11.9%
Non-current liabilities 19,176 21,347 –10.2%
Current liabilities 49,904 50,999 –2.1%
Total liabilities 159,986 153,557 4.2%
* interest included ** non-controlling interests included
Consolidated profit and loss account (CZK million)
2012 2011 2012/2011
Sales revenue 262,649 252,562 4.0%
Costs of sales 221,751 215,956 2.7%
Gross profit 40,898 36,606 11.7%
Distribution expenses 19,179 17,549 9.3%
Administrative expenses 6,855 6,123 12.0%
Other operating income 10,122 10,040 0.8%
Other operating expenses 7,069 4,717 49.9%
Operating profit 17,917 18,257 –1.9%
Financial result –1,255 791 > 100%
Profit before income tax 17,934 19,275 –7.0%
Income tax expense/income 2,580 3,200 –19.4%
Profit after income tax* 15,354 16,075 –4.5%
* non-controlling interests included
11
Consolidated balance sheet (CZK million)
31. 12. 2012 31. 12. 2011 2012/2011
Non-current assets 83,493 64,686 29.1%
Current assets 76,493 88,871 –13.9%
of which: deposits* 38,131 49,088 –22.3%
Total assets 159,986 153,557 4.2%
Equity** 90,906 81,211 11.9%
Non-current liabilities 19,176 21,347 –10.2%
Current liabilities 49,904 50,999 –2.1%
Total liabilities 159,986 153,557 4.2%
* interest included ** non-controlling interests included
Consolidated profit and loss account (CZK million)
2012 2011 2012/2011
Sales revenue 262,649 252,562 4.0%
Costs of sales 221,751 215,956 2.7%
Gross profit 40,898 36,606 11.7%
Distribution expenses 19,179 17,549 9.3%
Administrative expenses 6,855 6,123 12.0%
Other operating income 10,122 10,040 0.8%
Other operating expenses 7,069 4,717 49.9%
Operating profit 17,917 18,257 –1.9%
Financial result –1,255 791 > 100%
Profit before income tax 17,934 19,275 –7.0%
Income tax expense/income 2,580 3,200 –19.4%
Profit after income tax* 15,354 16,075 –4.5%
* non-controlling interests included
12
ŠKODA production worldwide 2012 2011 2012/2011
Production of ŠKODA cars
Fabia* 118,129 142,115 – 16.9%
Fabia Combi 59,870 73,023 – 18.0%
Fabia total 177,999 215,138 – 17.3%
Rapid 8,128 – –
Roomster 36,756 33,414 10.0%
Roomster Praktik 2,493 3,013 – 17.3%
Roomster total 39,249 36,427 7.7%
Octavia* 141,727 142,289 – 0.4%
Octavia Combi 127,831 131,953 – 3.1%
Octavia total** 269,558 274,242 – 1.7%
Yeti* 90,882 77,312 17.6%
Superb 26,125 26,009 0.4%
Superb Combi 39,809 44,882 – 11.3%
Superb total 65,934 70,891 – 7.0%
Total ŠKODA brand 651,750 674,010 – 3.3%
ŠKODA brand production worldwide
Production of ŠKODA cars in Pune 29,342 2,561 > 100%
Production of ŠKODA cars in Bratislava 36,687 1,027 > 100%
Production of ŠKODA cars in China 226,653 223,030 1.6%
Total ŠKODA worldwide 944,432 900,628 4.9%
* including disassembled vehicle kits distributed to production plants outside ŠKODA AUTO Group
** includes Octavia and Octavia Tour
13
ŠKODA production worldwide 2012 2011 2012/2011
Production of ŠKODA cars
Fabia* 118,129 142,115 – 16.9%
Fabia Combi 59,870 73,023 – 18.0%
Fabia total 177,999 215,138 – 17.3%
Rapid 8,128 – –
Roomster 36,756 33,414 10.0%
Roomster Praktik 2,493 3,013 – 17.3%
Roomster total 39,249 36,427 7.7%
Octavia* 141,727 142,289 – 0.4%
Octavia Combi 127,831 131,953 – 3.1%
Octavia total** 269,558 274,242 – 1.7%
Yeti* 90,882 77,312 17.6%
Superb 26,125 26,009 0.4%
Superb Combi 39,809 44,882 – 11.3%
Superb total 65,934 70,891 – 7.0%
Total ŠKODA brand 651,750 674,010 – 3.3%
ŠKODA brand production worldwide
Production of ŠKODA cars in Pune 29,342 2,561 > 100%
Production of ŠKODA cars in Bratislava 36,687 1,027 > 100%
Production of ŠKODA cars in China 226,653 223,030 1.6%
Total ŠKODA worldwide 944,432 900,628 4.9%
* including disassembled vehicle kits distributed to production plants outside ŠKODA AUTO Group
** includes Octavia and Octavia Tour
14
Portfolio of models manufactured worldwide (as at 31 December 2012)
Cit
igo
Fab
ia
Rap
id
Ro
om
ste
r
Oct
avia
Yeti
Su
pe
rb
Se
at T
ole
do
VW
Jett
a
VW
Pas
sat
Au
di A
6
Au
di A
4
Au
di Q
5
Au
di Q
7
Mladá Boleslav (Czech Republic)
Vrchlabí (Czech Republic)
Kvasiny (Czech Republic)
Bratislava (Slovakia)
Kaluga (Russia)
Nizhny Novgorod (Russia)
Aurangabad (India)
Pune (India)
Shanghai (China)
Yizheng (China)
15
Portfolio of models manufactured worldwide (as at 31 December 2012)
Cit
igo
Fab
ia
Rap
id
Ro
om
ste
r
Oct
avia
Yeti
Su
pe
rb
Se
at T
ole
do
VW
Jett
a
VW
Pas
sat
Au
di A
6
Au
di A
4
Au
di Q
5
Au
di Q
7
Mladá Boleslav (Czech Republic)
Vrchlabí (Czech Republic)
Kvasiny (Czech Republic)
Bratislava (Slovakia)
Kaluga (Russia)
Nizhny Novgorod (Russia)
Aurangabad (India)
Pune (India)
Shanghai (China)
Yizheng (China)
16
Deliveries to customers by region
Deliveries to customers (vehicles) Change in % % share of passenger car market**
2012 2011 2012/2011 2012 2011
Central Europe* 124,012 123,156 0.7% 18.9% 17.7%
Eastern Europe 137,057 108,423 26.4% 4.2% 3.6%
Western Europe 358,439 361,777 –0.9% 3.0% 2.8%
Overseas/Asia 319,694 285,828 11.8% 1.3% 0.6%
Total ŠKODA brand 939,202 879,184 6.8% 1.4% 1.4%
* incl. Czech Republic ** total markets
Deliveries to customers – largest markets
Deliveries to customers (vehicles) Change in % % share of passenger car market**
2012 2011 2012/2011 2012 2011
Total ŠKODA brand 939,202 879,184 6.8% 1.4% 1.4%
China 235,674 220,089 7.1% 1.7% 1.8%
Germany 132,580 128,011 3.6% 4.3% 4.0%
Russia 99,062 74,074 33.7% 3.7% 3.0%
Czech Republic 59,674 58,202 2.5% 34.1% 33.4%
United Kingdom 53,249 45,282 17.6% 2.6% 2.3%
Poland 36,307 38,116 –4.7% 13.4% 12.7%
India 34,265 30,005 14.2% 1.3% 1.3%
Austria 22,300 21,208 5.1% 6.6% 5.9%
France 22,022 22,356 –1.5% 1.2% 1.0%
Switzerland 17,830 16,298 9.4% 5.5% 5.1%
Belgium 17,530 18,900 –7.2% 3.6% 3.3%
Netherlands 16,455 20,879 –21.2% 3.3% 3.8%
Slovakia 15,902 15,182 4.7% 22.7% 22.1%
Ukraine 14,393 10,909 31.9% 6.6% 4.9%
Spain* 13,026 15,873 –17.9% 1.9% 2.1%
* excl. Canary Islands ** total markets
17
Deliveries to customers by region
Deliveries to customers (vehicles) Change in % % share of passenger car market**
2012 2011 2012/2011 2012 2011
Central Europe* 124,012 123,156 0.7% 18.9% 17.7%
Eastern Europe 137,057 108,423 26.4% 4.2% 3.6%
Western Europe 358,439 361,777 –0.9% 3.0% 2.8%
Overseas/Asia 319,694 285,828 11.8% 1.3% 0.6%
Total ŠKODA brand 939,202 879,184 6.8% 1.4% 1.4%
* incl. Czech Republic ** total markets
Deliveries to customers – largest markets
Deliveries to customers (vehicles) Change in % % share of passenger car market**
2012 2011 2012/2011 2012 2011
Total ŠKODA brand 939,202 879,184 6.8% 1.4% 1.4%
China 235,674 220,089 7.1% 1.7% 1.8%
Germany 132,580 128,011 3.6% 4.3% 4.0%
Russia 99,062 74,074 33.7% 3.7% 3.0%
Czech Republic 59,674 58,202 2.5% 34.1% 33.4%
United Kingdom 53,249 45,282 17.6% 2.6% 2.3%
Poland 36,307 38,116 –4.7% 13.4% 12.7%
India 34,265 30,005 14.2% 1.3% 1.3%
Austria 22,300 21,208 5.1% 6.6% 5.9%
France 22,022 22,356 –1.5% 1.2% 1.0%
Switzerland 17,830 16,298 9.4% 5.5% 5.1%
Belgium 17,530 18,900 –7.2% 3.6% 3.3%
Netherlands 16,455 20,879 –21.2% 3.3% 3.8%
Slovakia 15,902 15,182 4.7% 22.7% 22.1%
Ukraine 14,393 10,909 31.9% 6.6% 4.9%
Spain* 13,026 15,873 –17.9% 1.9% 2.1%
* excl. Canary Islands ** total markets
18
Deliveries to customers by model
2012 2011 2012/2011
Citigo 29,960 510 > 100%
Fabia 178,038 192,852 –7.7%
Fabia Combi 62,432 73,911 –15.5%
Fabia total 240,470 266,763 –9.9%
Rapid 24,692 1,671 > 100%
Roomster 35,314 33,005 7.0%
Roomster Praktik 2,650 3,005 –11.8%
Roomster total 37,964 36,010 5.4%
Octavia 285,169 261,572 9.0%
Octavia Combi 124,463 125,611 –0.9%
Octavia total* 409,632 387,183 5.8%
Yeti 87,397 70,321 24.3%
Superb 68,558 73,125 –6.2%
Superb Combi 40,529 43,601 –7.0%
Superb total 109,087 116,726 –6.5%
Total ŠKODA brand 939,202 879,184 6.8%
* includes Octavia and Octavia Tour
19
Deliveries to customers by model
2012 2011 2012/2011
Citigo 29,960 510 > 100%
Fabia 178,038 192,852 –7.7%
Fabia Combi 62,432 73,911 –15.5%
Fabia total 240,470 266,763 –9.9%
Rapid 24,692 1,671 > 100%
Roomster 35,314 33,005 7.0%
Roomster Praktik 2,650 3,005 –11.8%
Roomster total 37,964 36,010 5.4%
Octavia 285,169 261,572 9.0%
Octavia Combi 124,463 125,611 –0.9%
Octavia total* 409,632 387,183 5.8%
Yeti 87,397 70,321 24.3%
Superb 68,558 73,125 –6.2%
Superb Combi 40,529 43,601 –7.0%
Superb total 109,087 116,726 –6.5%
Total ŠKODA brand 939,202 879,184 6.8%
* includes Octavia and Octavia Tour
20
© ŠKODA AUTO a.s., March 2013Tř. Václava Klementa 869293 60 Mladá BoleslavCzech Republic
www.skoda-auto.com
ŠKODA SuperbŠKODA Superb Combi
ŠKODA FabiaŠKODA Fabia Combi
ŠKODA OctaviaŠKODA Octavia Combi
ŠKODA Citigo
ŠKODA Roomster
ŠKODA Yeti
ŠKODA Rapid
ŠKODA product portfolio