What with all this VW emissions scandal going on, I'm beginning to wonder if the penalties/payouts become so big that VAG needs to consider selling off assets to pay for everything and prevent bankruptcy e.g. selling off some of it's brands.

 

Note, I don't the the state of VWs finances and whether large fines and payouts could reach a point where VW needs to go through the kind of restructuring I mention, so I could be talking absolute rubbish.

 

None the less, what are people's thoughts on:

 

1) Given the level of integration (at a technical/mechanical level) of Skoda with VAG, how easy/difficult would it be for VW to sell off Skoda (or Seat or any of it's other brands)?

 

2) What would be the impact on Skoda in the short, medium and long term. Just how much VAG engineering (parts) and knowhow (ability to design/develop new cars) is in Skoda.

 

3) Would you still buy a Skoda if it wasn't part of VAG?

 

 

Never gonna happen. Even if they did go bust someone would buy it out. The name is too valuable even with the current debacle.

This is the tip of what I think will prove to be a large iceberg for many others too, this is not soley a VW thing. There will be others dragged up in the net once a full investigation gets going.

I can't see VW going bankrupt myself. And I don't think they would send Skoda back to the dark ages either. Also don't Audi own 50% of the group?

Never gonna happen. Even if they did go bust someone would buy it out. The name is too valuable even with the current debacle.

VAG with its current "biggest car manufacturer in the world" status, is probably a bit of an institution in Germany and possibly classed as "too big to fail". Hence I do tend to agree.

However it's quite conceivable that in an attempt to rescue the beast it needs to be broken up to make it more digestible/manageable, or as per my original statement, sell off assets to pay off all the penalties, hence the topic.

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VAG with its current "biggest car manufacturer in the world" status, is probably a bit of an institution in Germany and possibly classed as "too big to fail". Hence I do tend to agree.

However it's quite conceivable that in an attempt to rescue the beast it needs to be broken up to make it more digestible/manageable, or as per my original statement, sell off assets to pay off all the penalties, hence the topic.

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Broken up....

 

Maybe. Not someting I'd bet against

Broken up....

Maybe. Not someting I'd bet against

Right... But as per my questions 1) & 2) is a breakup even feasible? Assuming yes, would folks buy into a Skoda that's no longer part of VAG?

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Right... But as per my questions 1) & 2) is a breakup even feasible? Assuming yes, would folks buy into a Skoda that's no longer part of VAG?

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Yes

2) ... Just how much VAG engineering (parts) and knowhow (ability to design/develop new cars) is in Skoda.

 

Only the body panels glass and lights etc are specific to each brand, ALL of the mechanical components are used across the whole VAG group.

New engines and drive train req for Skoda.

Yes, I'd love to see what Škoda could do on their own, but as an owner of arguably the last real Škoda design (admittedly with VW money behind it), I may be a little biased. But I have absolutely no doubt they have the capability but not sure they would have the finances on their own. I'd like to think they'd make more of their rally heritage and take on VW. That would be fun.

Not sure how it could work in reality. Would probably need Czech government funds and then the EU would block it.

They'd probably sell a part that wasn't as well integrated into the group first, like Ducatti, Lambo, Bentley, or Bugatti. Or more realistically, shares in those. 

 

Of course, there's a difference between selling a brand name, and the resources it uses. 

I'd say it is realistic to think that a breakup could be possible. Look at the way GM had to restructure..the figures being quoted are huge for VW. They have set aside a fraction of the value being put on potential fines for the US, let alone rectification, compensation etc plus any additional funds required for the rest of the 11 million vehicles sold around the rest of the world.

Let's say they did break up probably most value would come from the super car de visions with probably the least loss?

Right... But as per my questions 1) & 2) is a breakup even feasible? Assuming yes, would folks buy into a Skoda that's no longer part of VAG?

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I would think so. There were no shortage of Skoda driver's back in the 80s when I was a kid.

No, but they bought them for a different reason, ie they went forwards and were dirt cheap. Now people buy them for the badge, and it's connection to VW-Audi, and the perceived build quality. 

No, but they bought them for a different reason, ie they went forwards and were dirt cheap. Now people buy them for the badge, and it's connection to VW-Audi, and the perceived build quality. 

 

"...build quality", which is no longer a reality, if Citgo, Rapid and Octy 3 forums are anything to go by.

Skoda have a new CEO now that Dr Winfied Vahland has been moved elsewhere.

 

He who was reported to have said when there would be no more Fabia vRS with the New generation Fabia & that people want sporty looks but engines they can afford, and if you want a real vRS buy an Octavia.

 

http://praguepost.com/the-big-story/49946-skoda-to-get-new-ceo

Only the body panels glass and lights etc are specific to each brand, ALL of the mechanical components are used across the whole VAG group.

Other than assembling vehicles, do any of the current Skoda "owned" plants actually manufacture anything?

 

I'd assume that they'd make any unique to Skoda parts, but do they manufacture for any of the other VAG brands?

 

DC

Do ANY manufacturers actually make any parts (other than the body panels / shells) themselves?

 

Most if not everything is all outsourced to other suppliers, transported to the factory then built into cars.

Honda

Other than assembling vehicles, do any of the current Skoda "owned" plants actually manufacture anything?

 

I'd assume that they'd make any unique to Skoda parts, but do they manufacture for any of the other VAG brands?

 

DC

 

TSi motors for VW SEAT Audi

 

DSG DQ200 transmissions for various VAGs

Edited 26 September, 201510 yr by camelspyyder

I can't see that Skoda could survive on their own, all the Skoda brand cars are produced with most parts from the VAG parts bin.  VAG would not allow any other owner to carry on using it's parts, if they did then some form of expensive licence to produce parts would be set in place.   This could only carry on for a small number of years until the models were out of date, then some form of large injection of cash would be needed to design and produce new models. 

All my theory of course but No. they won't sell Skoda as a brand just a bit of rescheduling of the group finances will happen and they have already earmarked 6.5 billion to get them out of the mire, a tad more required I feel.

TSi motors for VW SEAT Audi

 

DSG DQ200 transmissions for various VAGs

So Skoda are very much integrated into the whole VAG empire. 

I'd have to agree that unraveling the whole empire would be a daunting task,& somewhat upsetting for the German economy.

http://en.wikipedia.org/wiki/List_of_Volkswagen_Group_factories