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/business/article_1133005.php/Volkswagen_to_impose_cost_cuts_at_Skoda_report

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

It's hardly fair is it. Skoda doubled their net profit last yeat to

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.

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.

Or read between the lines - Skoda is stealing too many sales from VW - nows the time to milk them for the cash' date=' 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.[/quote']

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?

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...

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.

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

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

.................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

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.

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

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

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.

If skodas start being badly built' date=' 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.[/quote']

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.

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

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.

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

Chris

Yes, I do, current retail value

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.

The dealership I work for has five employees who own four vRS Fabias and one vRS Octavia between them.

I think this speaks volumes for Skoda quality and reliability, as the people who work on them would certainly be aware of any quality problems.

In fact one of our Technicians who owns a vRS Fabia has worked for all four brands of the VW Group and he says that Skoda is the best by far.

In my personal opinion I believe VW would be shooting themselves in the foot if they muck about with Skoda, it just doesn't make sense to screw up your most profitable marque now does it? especially when there are (alledged) money problems elsewhere in the group.

Make money now, get out of the hole, sort out perceived brand image later, when profitability throughout the group is good.

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.

I don't mean to rain on your parade Lummox but that doesn't make financial sense, more like suicide, as it has been proven that the shared platform is the most economical way to go.

The only benefit from this would be exclusivity. Hmmm..... benefit? nah don't think so, not in the short term anyway.

The Volkswagen arm of the group has been in trouble for a while with diminishing sales, think back to last year when Porsche acquired a 20% share in the group to protect VAG from rumoured hostile takeover to protect their longstanding partnership. and now two of the Porsche board are seated on the VAG board.

As far as imposing cuts in Skoda's budget it would be commercial suicide, Skoda have been showing the rest of the group how it should be done for the last couple of years for example MkII Octy Vrs v Golf GTI.

Quick question, when VAG put out tender for design for Bentley Continental GT correct me if I am wrong but was it not found in Skoda design studios???

vw need to sell bugatti .... they built the ultimate car at a loss of somewhere near

The loss Bugatti made with the Veyron is a drop in the ocean compared to the rest of the group and as a marketing excercise was a touch of class.

I also have worked on the four major brands (see sig) and have owned SEATs and Skodas and am going back to the VAG brand should the Primera sell.

I only mentioned about VW as thats what I heard at work (VW dealer)