() is a
Czech Automobile manufacturer and one of the four oldest car producers in the world. In 1991 it became a subsidiary of the
Volkswagen Group (VAG). In
Czech , the word škoda means roughly, "It's a shame" - amusing given the company's reputation.
Established in 1895 as
Laurin & Klement , the company started as a
Bicycle manufacturer. In 1899 it added motorcycles and in 1905 cars. The first model,
Voiturette A , was a success and the company was established both within
Austria-Hungary and internationally. During the
First World War Skoda was engaged in war production.
After WWI it began producing trucks, but in 1924, after running into problems and being hit by a fire, the company sought a partner. As a result it merged with , the biggest industrial enterprise in
Austria-Hungary and then
Czechoslovakia . Most later production was under the Škoda name. After a decline during the economic depression, Škoda was again successful with models such as the ''Popular'' in the late 1930s.
During the
World War II Occupation Of Czechoslovakia the Škoda works was turned into part of ''Hermann Göring Werke'' serving the
German World War II effort.
After WWII Škoda became part of the
Planned Economy and was separated from the parent Škoda company. In spite of unfavourable political conditions and losing contact with technical development in noncommunist countries, Škoda retained a good reputation until the 1960s, producing models such as the Škoda 440 Spartak, 445 Octavia, Felicia and
Škoda 1000 MB . Škoda was internationally known for building very tough and reliable cars.
In the late 1980s Škoda (then named ''Automobilové závody, národní podnik,
Mladá Boleslav '') was still manufacturing cars conceptually from the 1960s. Rear Engined models such as the Skoda 105/120, Estelle and Rapid sold steadily in many countries and regularily performed very well against more modern makes in races such as the RAC Rally in the 70's and 80's. They won their class in the RAC rally for 17 years running. They were powered by a 1289cc engine, which the works team managed to squeze 130bhp out of roughly.
The Rapid was once described as a 'poor man's Porsche' and was responsible for a surprising amount of sales in the UK during the later years of the 1980s. When new it was also opitional for the Estelles and Rapids to be converted to a Sport or a Cabriolet. These models are now sought after and earn a higher price than 'normal' cars.
The turning point came in 1987 with the
Favorit model. The Favorit's appearance was designed by Italian design company
Bertone and, with some motor technology licensed from western European companies, although still using the Skoda designed 1289cc engine. Škoda engineers succeeded in designing a car comparable to western production. The technological gap was still there, but began closing rapidly. While still the target of jokes in the West, the Favorits were very popular in Czechoslovakia and other
Eastern Bloc countries.They also sold fairly well in Western Europe, especially in the UK, being regarded as good value, solid and reliable. Their trim levels continued to improve and they were sold right up to the introduction of the Felicia in 1996.
The
Velvet Revolution brought great changes to both the politics and economy of Czechoslovakia, and most industries were subject to
Privatization . In the case of Škoda automobile the government decided to bring in a strong foreign partner. VWAG was chosen in 1990 and on
1991-04-16 Škoda become the fourth brand of VWAG. The example of other Eastern-Bloc automobile manufacturers such as
Lada -
AutoVAZ and
Zastava , and of ''Škoda works'', once ''Škoda auto'' parent company, prove this was the right decision. (Privatization to a major German company was somewhat controversial at the time the decision was made.)
Backed by VW know-how and investments the design—both style and engineering—has improved greatly. The 1996 model
Felicia was still based on the floorplan of the Favorit, but quality made huge improvements and in the Czech Republic the car was popular as it was good value for money. The subsequent models ''Octavia'' and ''Fabia'' finally made their way to the demanding
EU markets. They are built on common VWAG floorpans, e.g. Octavia on the Golf floorplan and therefore directly related to the
VW Golf ,
Audi A3 and
SEAT León .
Perception of Škoda in , a new employee on the production line is fitting Škoda badges on the car bonnets. When some attractive looking cars come along he stands back, not fitting the badge, since they are ''too good to be Škodas''.
Škoda now has various manufacturing and assembly plants including one in
Sarajevo ,
Bosnia And Herzegovina . Skoda also has an assembly plant in the city of Aurangabad in the western Indian state of Maharashtra.
Škoda is a participant in the
World Rally Championship with
Škoda Fabia WRC until 2005.
The 2006 season saw Skoda represented by a private team.
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