VW could order Skoda to "withdraw from Western markets and move production east"

[RapidRonnie]

VW have been making noises for a while about Skoda competing too much with VW, don't know how much truth there is in this though: http://ekonomika.sme.sk/c/5369492/nemci-mozno-presunu-skodu-na-vychod-nech-nekonkuruje-vw.html

[devonutopia]

All owned by the same people so surely this isn't actually a problem?!

Like saying Coco Pops is competing with Corn Flakes when all owned by Kelloggs!

[Leon-y-k]

hmmmm, VW just need to make better cars to be fair! Skoda have picked themselves up along with VW's help... its now VW that needs to up their game maybe?

It will be a sad day if Skoda's sales are no longer going to be in europe :(

bringing up your own child that succeeds better than what you do? its still taking profit in for the group though....

[RapidRonnie]

You would think so, as a sale to VAG is a sale taken away from the opposition but the argument is that they make higher margins on VW cars.

[devonutopia]

Surprised at the margins thing as the labour rates are miles lower where the Skoda factory is. Was expecting Skoda to have the best margin really.

[blueR36]

VW have been making noises for a while about Skoda competing too much with VW, don't know how much truth there is in this though: http://ekonomika.sme...nkuruje-vw.html

Your Czech is better than mine!

[Leon-y-k]

google chromes translator is amazing! well thats what I used!

[cheezemonkhai]

The margins on the VW are better because you get less kit and less car for a higher price.

I was considering a superb 2 as my next car; however if skoda were to be moved out of the UK, then I think VW are deluded if they think I'd be buying anything else from the VAG group.

It would most likely be off to Ford or back to Citroen for me or if I had the money, I'd go up to a BMW/Mercedes

Edited 11 May, 2010 by cheezemonkhai

[RapidRonnie]

Having thought about this a bit more, I can't really see it happening. Would they really just bin all the infrastructure and customer loyalty they have in place for Skoda in Western Europe?

Probably more likely is that they force Skoda to de-posh their cars as has already been suggested by VAG bosses recently.

Honestly I think they're playing a dangerous game. Skoda are a profitable manufacturer and have been for a number of years now. Why mess with a winning formula?

[KenONeill]

Which makes more money for VAG? A man who buys a Skoda, or one who buys a Ford or a Toyota instead?

[RapidRonnie]

Which makes more money for VAG? A man who buys a Skoda, or one who buys a Ford or a Toyota instead?

Quite!

VW may be trying to offload SEAT too: http://www.autocar.co.uk/News/NewsArticle/AllCars/249657/

[johnlod]

Is there any evidence to support the view that people buy Skoda cars instead of VWs.

If VW were to ban Skoda from western markets, there is no evidence to support the view that those people who would have bought Skoda would go and buy a VW instead. Its far more likely that they would buy another budget priced quality car.

With regard to moving production east. Are they further suggesting that Skoda cars would not be produced in the Czech Republic. I would think that Czech politicians would have a lot to say about that given the employment implications.

John

[richwarwicker]

If VW were to ban Skoda from western markets, there is no evidence to support the view that those people who would have bought Skoda would go and buy a VW instead. Its far more likely that they would buy another budget priced quality car.

John

personally i would not spend the premium price for a vw, if i was spending that premium amount i'd consider going more for a bmw or merc, skodas are a completely different price band and affordability

[The Ors]

Is there any evidence to support the view that people buy Skoda cars instead of VWs.

If VW were to ban Skoda from western markets, there is no evidence to support the view that those people who would have bought Skoda would go and buy a VW instead. Its far more likely that they would buy another budget priced quality car.

personally i would not spend the premium price for a vw, if i was spending that premium amount i'd consider going more for a bmw or merc, skodas are a completely different price band and affordability

Exactly.

[Soot1e]

I upgraded from a VW Golf to a Skoda Fabia, so why would I want to downgrade again?

If VAG think buyers will automatically go for another VAG brand if Skoda (and the SEAT brand seem to be in trouble) were not available to us, they had better think again. The same kind off Brand deleting and switching happened before with British Leyland and Rover, look what happened to them. It wasn't all to do with quality and investment.

[lemonvrs]

Id definately go elsewhere, Im not paying VW prices.... probably go back to Fiat.