Volkswagen to impose cost cuts at Skoda: report

[ColinD]

Hamburg - Europe's biggest volume car producer, Volkswagen, is to impose a cost-cutting programme at Skoda, although the Czech subsidiary is profitable, the German weekly Automobilwoche reported Sunday.


The newspaper gave no further details in its account, which dealt with changes designed to bring Volkswagen back to financial health.



It said Volkswagen's new chief of personnel, Horst Neumann, was also seeking to introduce profit-related pay at Volkswagen group generally, in line with practice at the Audi subsidiary where he previously worked.


'A company that is not earning any money cannot afford to pay 20 per cent more than the general rate,' it quoted him saying.


Volkswagen is currently seeking ways to shrink its labour costs, including disposal of some of its German components factories.


Automobilwoche reported that Volkswagen's plant sales plans were creating difficulties for General Motors' German unit, Opel, which is trying to sell a components plant of its own in the southern German city of Kaiserslautern.


Klaus Franz, who leads Opel's council representing labour, said this was making the disinvestment more difficult for Opel.


Another labour leader said only four companies were showing an interest in the Opel plant. Chinese, South Korean and US components companies had looked at the Kaiserslautern plant but decided not to bid.

Source:http://news.monstersandcritics.com/b...t_Skoda_report

[lozgti]

Selling Seat would be a better bet.Thought that was where the problems were?

[OctaviaT81]

It's hardly fair is it. Skoda doubled their net profit last yeat to £189m and VW want to make cuts at Skoda as their reward.

[postmanpat]

Or read between the lines - Skoda is stealing too many sales from VW - nows the time to milk them for the cash, reduce the quality now theyv'e got a better image with the general public then drop them like a stone when it goes pear shaped, Perhaps what BMW had in mind with Rover but didn.t come off.

DOOOOOOOOOOOMED I say, where all DOOOOOOOOOOOOOMED.

[NascarMike]

How typical is this when you get a company run by accountants and not by entrepreneurs or car people.

Skoda is one arm of the business they should be happy with and investing in NOT taking out.

I quite agree, I think that they are worried that Skoda are taking too many sales from Volkswagen and their quality IS better than Volkswagen.

As an example where is the new Superb!!!!

We have had the new Audi A4, then Passat, but no Superb at the moment.

Also why don't they do a Superb Estate..............simple reason it will take too many sales off the Passat.

Volkswagen should realise where their problem really is AT Volkswagen and SEAT.

Hope they take note.

And I will see pigs fly.

[Tom_vRS]

Originally Posted by postmanpat

Or read between the lines - Skoda is stealing too many sales from VW - nows the time to milk them for the cash, reduce the quality now theyv'e got a better image with the general public then drop them like a stone when it goes pear shaped, Perhaps what BMW had in mind with Rover but didn.t come off.

DOOOOOOOOOOOMED I say, where all DOOOOOOOOOOOOOMED.

In essence I think this is true. The Skoda brand has done amazingly well, probably better than VW anticipated.

The vRS Fabia for example was supposed to be a limited run, but due to popularity it was stayed on, and now accounts for a huge % of Fabia sales.

How about not doing stupid things like developping the Veyron?

[niallyp]

funny you should say that, the boy at ingram skoda/ingram audi when i test drove the vrs asked what else i was looking at and mentioned a leon fr tdi and he said there was noisy rumours in the vag group that seat was getting the heave ho.

so maybe it is all just rumours just now and no one really knows...

[HellFire]

I dont think there is enough seperation between the brands and that's why Skoda do so well.

Example is why by a polo gt when you can buy a fabia vrs that looks better, certainly has more kudos, is just as reliable and £2k cheaper.

[Mr Grumpy]

Originally Posted by HellFire

I dont think there is enough seperation between the brands and that's why Skoda do so well.

Example is why by a polo gt when you can buy a fabia vrs that looks better, certainly has more kudos, is just as reliable and £2k cheaper.

Tis. true, I have had VW's for years, but I wasn't prepared to pay 15K for a Polo when I have bought essentially the same car for substantially less, with better aftersales I might add !

[VRStu]

Originally Posted by HellFire

Example is why by a polo gt when you can buy a fabia vrs that looks better, certainly has more kudos, is just as reliable and £2k cheaper.

.................and will retain more of it's value afer 3 years of ownership.

[ScoobyChris]

Originally Posted by VRStu

.................and will retain more of it's value afer 3 years of ownership.

On paper at least Anyone own a 3 year old Fabia vRS yet?!

Chris

[Mike Wrightson]

I'm at 2.5yrs now with mine Dealers have offered me £8500 to £8750 for the car as a trade-in, so look for £9000 to £9500 private. Thats pretty good I think!

My preferred dealer for replacing the car (not the one I bought the car off) has told me that the price won't drop significantly even if I wait until summer as they know they will easily be able to sell it.

[Fish]

Time for a management buy out me thinks! Czech-mate. Oh, and don't mention ze war!

[agbasey]

Originally Posted by graham smith

Tis. true, I have had VW's for years, but I wasn't prepared to pay 15K for a Polo when I have bought essentially the same car for substantially less, with better aftersales I might add !

Cant add much to that other than 3 years aa cover

[cheezemonkhai]

If skodas start being badly built, I would go bak to peugot/citroen or ford for cheap cars. The pugs/citroens are a lot cheaper and the Fords cheaper and well built.

I would *NEVER* buy a VW when there is so little standard equipment and the prices are so high. Not to mention a lot of the dealers being up their own ar*es.
Tried to buy Aero wipers from one and all they did was slag skoda off saying how they were not as well built etc etc.

[gtjunior]

Originally Posted by cheezemonkhai

If skodas start being badly built, I would go bak to peugot/citroen or ford for cheap cars. The pugs/citroens are a lot cheaper and the Fords cheaper and well built.

I would *NEVER* buy a VW when there is so little standard equipment and the prices are so high. Not to mention a lot of the dealers being up their own ar*es.
Tried to buy Aero wipers from one and all they did was slag skoda off saying how they were not as well built etc etc.

Where my dad gets his VW serviced, They slaged my skoda off but i came back with oh a car thats just under 3yrs, The Damm doors have droped, rattles like hell sounds like a challenger tank and you say 70K miles its just running it YEAH RITE. They soon shut up.

[OctaviaT81]

I still think it's not fair that VW are imposing cost cutting at Skoda but I don't think they intend to run them into the groud at all.

Instead they seem to be becoming a more and more important part of the VW empire. They're in the process of opening a number of new factories all around the world (now calling themselves the Skoda Auto Group) as well as numerous new R&D facilities in the Czech Republic.

They published a new press release this week; first quarter results for 2006 are:

- Deliveries to customers up 18.5% on the same period last year
- Profits up 131.2%!
- All model ranges improved sales

[Johnnyc]

The Octy II got my attention from all the press reviews it got. Top quality, value for money, better interior and materials than the Golf and great reviews of the dealers service too.

The car still remains in the top 5 and everyone who paid over the top for VW's and the like because they couldnt live with the Skoda image has been watching closely for the last year and a half to see where the catch with Skoda is.

Thing is there isn't a catch but if Skoda quality drops as a result of this recent development all eyes will be on them and as they say the bigger they are the harder they fall.

I really hope my car isn't the last of a dying breed.

[fatbob]

Originally Posted by ScoobyChris

On paper at least Anyone own a 3 year old Fabia vRS yet?!

Chris

Yes, I do, current retail value £8300.
I bought it as a trade sale as it had been let go a little (so cost me a bit less, ok a lot less). It needed four tyres, four doors straightened out by Dent Devil, mud flaps fitted (personal choice), a water leak sorted and a lot of tlc in the form of 3 weekends of washing, polishing and hovering.
It now looks wonderfull and as soon as I figure out the new digi camera I will post some pics.
I love it.

[Lummox]

From what i've heard VW are replacing the MK5 Golf at the end of this year/early next year. The MK5 is proving to costly to build and they are going to make the MK6 more cost effectively and it wont have a platform shared with any other VAG car.