So its true - Skodas ARE the bargains we know they are:-

(Autocar article with Bernd Pischetsrieder this week)

1. VAG Volkswagen Audi Group is losing money on almost every non-Audi model it sells.

2. It desperately needs higher pricing if it is to avoid painful restructuring and job losses.

3.VAG would need to raise prices by 400euros on every Golf and Passat it owns for the next 15 years to recoup the investment made on the Phaeton

Maybe this will not all be bad news for the future Skoda models? As they'll need to encourage us all to spend a bit more per car by making them better specced and equipped ?

3.2 DSG 4x4 Octavia anyone ?

V8 4.0 TDI Superb ?

:bttt:

.VAG would need to raise prices by 400euros on every Golf and Passat it owns for the next 15 years to recoup the investment made on the Phaeton

Obviously a huge investment made by VAG on the Phaeton ............is it just me ...........because I can't see it paying off .

Too much competition in that category .......BMW , Merc , Lexus etc .

Originally posted by Fabpreza in this post

So its true - Skodas ARE the bargains we know they are:-

(Autocar article with Bernd Pischetsrieder this week)

Hmmm, i sense Mr FishTrousers (Funniest thing Clarkson ever said) is pushing for price rises

VAG made $815mill in the second quarter of this year so it's making a hell of a lot on Audi's!! Ford and GM should be a lot more worried.

Originally posted by Fabpreza in this post

So its true - Skodas ARE the bargains we know they are:-

(Autocar article with Bernd Pischetsrieder this week)

1. VAG Volkswagen Audi Group is losing money on almost every non-Audi model it sells.

2. It desperately needs higher pricing if it is to avoid painful restructuring and job losses.

3.VAG would need to raise prices by 400euros on every Golf and Passat it owns for the next 15 years to recoup the investment made on the Phaeton

Maybe this will not all be bad news for the future Skoda models? As they'll need to encourage us all to spend a bit more per car by making them better specced and equipped ?

3.2 DSG 4x4 Octavia anyone ?

V8 4.0 TDI Superb ?

:bttt:

Rob,

1. With Audi prices as they are now - see the ridiculously overpriced new A3 - it would be a tall order not to make money on Audis!

2. The new Golf is only slightly less ridiculously overpriced, so they've already started on this. :eek:

3. See above, - it seems like they've gone for 4000 euros for the next 15 months...

And I'm afraid that Skoda is becoming part of this scenario too - over here at least. The Fabia RS has become the first Skoda that can't be called "an honest car for an honest price" anymore. For a Skoda, it is ridiculously overpriced. It seems like you should be happy with Skoda UK, as it hasn't followed the new party line on the continent. The sporty Fab is still a bargain over at your side of the Channel!

I dont belive it at all. This article is trying to tell us that ALL VW cars are produced at a loss...out of the goodness of their heart?

Good buisiness practice dictates that profits must come from ALL sections of the workforce. No doubt the Phaeton will loose money, but it is a loss leader to give VW a presence in the luxury market. I would of thought that Audi is more likely to make less money then VW actually seeing as more VW,s are sold world wide than Audi,s.

It sounds like either an excuse to raise prices or drop a marque.Makes you wonder why, if they are bleeting about profits, they chose to buy Bentley and invest in that marque.

Andy

VAG are in danger of losing the plot. If they hadn't developed the Phaeton - yet another irrelevance in the overall car market - they wouldn't need to raise prices elsewhere to cover those development costs, would they? :confused:

I think its more the Bentley and Bugatti purchase that has done them.

Andy

I agree that a lot of questions have been raised about their expansion strategy.

BUT, do you think this will mean an improved Skoda brand with more options, niches and bits from the rest of the VAG group, to spread the costs / raise the margins, or not ?

They will need to move their manufacturing cost based away from Germany to remain competetive....

Its VERY expensive to produce in Germany.

Not that thats likely tho eh?

I would have thought you are more likely to see Skoda getting the hand me downs when VW facelifts or drops different models.However I also think the success of Skoda and Seat has hurt VW sales, and more importantly has raised serious question nmarks in peoples minds over VW,s pricing policy when you look at the prices of VW cars over brother cars on the same floor pan.

Andy

I was going to say , they dont have to try hard to make money on Audi's , the price they charge for them! I for one would love to know how much a car actually costs to be built (all costs including overheads , labour advertising raw materials ect) and find out just how much more it costs to build say an audi or bmw than it does say a hyundai or kia...i think there would be a few german arrests for daylight robbery.....

But at the end of the day if someone is mug enough to pay it then who are we to criticise them? Just look at the A3 , its just a glorified Gold/Octy but carries a hefty price premium because it has the "4 rings" on the bonnet.

They have just latched onto the badge snobbery culture of the West,which I just love to go against the flow and rub in peoples faces........

Andy

Originally posted by Kentish in this post

They have just latched onto the badge snobbery culture of the West,which I just love to go against the flow and rub in peoples faces........

I feel exactly now about Skoda as I did when I bought my first Subaru (Legacy Turbo) ten years ago. Great build and engineering, stunning performance and most people are totally ignorant about how good they are

It's badge snobbery that is killing a few of the car companies. Car magazine looked in detail at it this month. Look at 10 years ago. The Granada was competeing with the 5-series and out selling it come 1997 Ford abandoned the market. Mondeo's, Vectra's, Caviliers were the main rep mobile and family car in 1994. Now people go to 3-series, A4, C-class instead. The market is getting suffocated by premuim brands. Ford of Europe made a huge loss and is only being kept afloat by PAG, (Volvo mainly). GM is suffering along and the only car companies that look remotely healthy are VAG and Peugeot Citreon!