Skoda expands Kvasiny into a competence centre as it tops 2 million cars produced.

• Milestone vehicle is the new ŠKODA KODIAQ in Moon White
• Modern production site: ŠKODA invests around seven billion crowns into Kvasiny plant
• Largest employer in region: additional 2,600 qualified workers by end of 2016

ŠKODA has now built two million vehicles at the Kvasiny plant. The milestone vehicle – a ŠKODA KODIAQ in Moon White – rolled off the production line at the traditional Czech company’s site.

“Kvasiny is a state-of-the-art production facility with a great tradition and an outstanding team. As an important cornerstone of ŠKODA’s production network, the Kvasiny plant will be making a key contribution to ŠKODA Strategy 2025,” says ŠKODA Board Member for Production and Logistics Michael Oeljeklaus. 

“The site’s annual production volume will continue to increase over the coming years. To this end, we will be investing heavily into the location, expanding Kvasiny into a competence centre for the production of SUV vehicles among other things. 

We have recently reached an important milestone in this regard by launching production of the ŠKODA KODIAQ."

The Kvasiny plant has a tradition spanning the last 80 years, and is one of the most important employers in the Hradec Králové region. Cars such as the JAWA 700 were produced here as early as the 1930s. 

The first ŠKODA to be manufactured at Kvasiny was the ŠKODA SUPERB in 1947. In subsequent years, the models FELICIA (1958 to 1964), (1970 to 1980), ŠKODA pickup / VW Caddy pickup (1995 to 2001), SUPERB, ROOMSTER and YETI ran off the production Line.

The ŠKODA plant in East Bohemia is currently undergoing the most significant modernisation and expansion in its history. As part of the comprehensive SUV campaign, which was launched with the ŠKODA KODIAQ, the manufacturer has invested approximately seven billion crowns into the location. 

Over the next few years, the production capacity of the plant will steadily increase to 280,000 vehicles annually. An additional 2600 employees had been added to the workforce by the end of 2016, and ŠKODA will be creating new jobs this year, as well. 

The company is one of the largest industrial employers in the region.

Automobile production at Kvasiny – important milestones

1934

The body shop Jawa Kvasiny is founded.

1947

Production launch of the ŠKODA SUPERB.

1959

Kvasiny launches the production of the convertible ŠKODA FELICIA.

1970

Production launch of the sporty coupé ŠKODA 110 R.

1981

Production launch of the ŠKODA GARDE / RAPID.

1991

ŠKODA joins the Volkswagen Group.

2001

ŠKODA’s new flagship, the SUPERB rolls off the production lines at Kvasiny.

2006

Launch of the ŠKODA ROOMSTER model produced at Kvasiny.

2009

The new ŠKODA YETI compact SUV is produced at Kvasiny.

2013

January: The assembly of the ŠKODA ROOMSTER returns to Kvasiny.

July: The new combined heat and power plant (CHP) becomes operational. Around 3 million euros go into creating an environmental project, later awarded ‘eco-project of the year’ in the Czech Republic.

November: 1.5 million vehicles have been produced at Kvasiny.

December: 500,000th second-generation ŠKODA SUPERBs have been produced at Kvasiny.

2014

September: The Kvasiny plant celebrates 80 years of operation.

2015

March: The third generation ŠKODA SUPERB rolls off the line. ŠKODA invests heavily in new production technologies, assembly and logistics areas for the start of production of the brand’s flagship made in Kvasiny. 

Around 62.3 million euros were invested in the new body construction alone.

October: The 500,000th ŠKODA YETI is manufactured at Kvasiny.

2016

October: The brand’s first large SUV – the ŠKODA KODIAQ – is manufactured at Kvasiny.

Skoda releases sales, income and profits for teh first quarter of the year, and they are significantly higher than 2015.

• 6.4% sales revenue increase to 3.4 billion euros
• Operating profit increased 30.2% to 315 million euros
• ŠKODA’s new flagship SUPERB is among the growth factors

ŠKODA’s growth continues: The Czech automaker’s deliveries, sales revenue and operating profit have increased over the first three months of this year. This was ŠKODA’s strongest start to a new year ever, with sales increasing 4.3% to 276,600 vehicles in the first quarter. 

Sales revenue increased 6.4% in the same period to 3.379 billion euros; operating profit rose 30.2% to 315 million euros.

“ŠKODA has made an excellent start to the year,” says ŠKODA CEO Bernhard Maier, adding, “We have seamlessly continued the success of last year into the first quarter of 2016. We owe this especially to our strong model range, with the new ŠKODA SUPERB as an additional driving force, our highly motivated workforce and our commercial partners in the markets. The encouraging sales figures and strong financial results of the first quarter provide a solid foundation for further profitable growth. Our next model campaign begins with the upcoming launch of the new ŠKODA KODIAQ.” 

ŠKODA’s sales revenue rose 6.4 % to 3.379 billion euros between January and March 2016 (first quarter of 2015: 3.175 billion euros). Operating profit increased 30.2 %, reaching 315 million euros (first quarter of 2015: 242 million euros). Operating margin rose to 9.3% after 7.6% in the first quarter of the previous year. The higher profitability was primarily due to positive mix effects and better product costs.

“Thanks to this strong first quarter, ŠKODA’s profitable growth has continued and the company has again confirmed its financial strength and profitability,” explains ŠKODA CFO Winfried Krause. “Although the economic conditions remain challenging and the situation in some markets is difficult, we can build on our financial strength,” adds Krause.

ŠKODA AUTO Group – Key figures quarterly comparison, January to March 2016/2015*:

				January - March		2016/2015
				2016	2015	% Change
Deliveries to customers (DTC)		Cars		276,600	265,100	4.3
DTC without China		Cars		201,200	193,400	4.0
Production		Cars		197,800	186,400	6.1
Sales		Cars		207,100	196,100	5.6
Sales revenue		Million EUR		3,379	3,175	6.4
Operating profit		Million EUR		315	242	30.2
Operating profit as % of sales revenue		%		9.3	7.6	-
Investments (w/o capitalized development costs)		Million EUR		71	68	3.8
Net liquidity		Million EUR		3,393	2,395	41.7

*Deviations in the percentages are due to calculations using unrounded figures.

** Vehicle production excluding CKD units

Volkswagen and Skoda celebrate the 25th years of collaboration, expansion and co-operation.

• Ceremony at the ŠKODA Museum: Czech Prime Minister Bohuslav Sobotka and Volkswagen CEO Matthias Müller among the 500 guests
• Strong partnership: ŠKODA AUTO part of Volkswagen Group since 16 April 1991
• Rebirth: ŠKODA’s successful rise from regional leader to global player
• Record sales: In 2015 ŠKODA delivered more than one million vehicles; upward trend continues
• Model campaign: ŠKODA sets sights on SUV segment in jubilee year

The foundations of an exemplary success story were laid 25 years ago. The partnership between the Volkswagen Group and the Czech carmaker began on 16 April 1991. From that point on, the traditional Czech brand evolved from being a regional market leader to an internationally successful vehicle manufacturer. 

In the presence of Czech Prime Minister Bohuslav Sobotka, Volkswagen CEO Matthias Müller and Jaroslav Povšík, head of trade union KOVO MB, ŠKODA CEO Bernhard Maier commemorated-this-utstanding milestone in the company’s 121-year history today. 

Around 500 guests from politics, economy and society took part in the anniversary celebrations at the Laurin & Klement Forum of the ŠKODA Museum in Mladá Boleslav.

“ŠKODA is one of the longest-established carmakers in the world that has been writing an exemplary success story over the past quarter century thanks to a strong team,” said ŠKODA CEO Bernhard Maier, adding: “What began as a one-series producer with annual sales of 170,000 in the early 90s has since evolved into an internationally competitive car company with six model lines and over 40 versions. 

Nowadays, ŠKODA produces over one million cars per year at 14 production sites on two continents, selling products in over 100 markets. 

The good partnership between ŠKODA and Volkswagen and a competent and highly motivated workforce have paved the way for this exemplary development.”

“Supporting a stable economy, attracting new investments and creating new jobs are among the priorities of the government coalition. ŠKODA AUTO has become one of the drivers of the Czech economy over the past 25 years. 

The government recently supported the expansion of the Solnice-Kvasiny industrial zone in the Hradec Králové region. ŠKODA AUTO will be investing 7.2 billion crowns into the location and creating more than 2000 new jobs by 2018. 

This investment also underlines the fact that ŠKODA AUTO is one of the most important investors and employers in the Czech Republic. I wish the company stable and successful development over the coming years,” says Prime Minister Bohuslav Sobotka.

By 1990 several car manufacturers from Western Europe and overseas had expressed their interest in the traditional brand, founded in 1895, to the Czech government, who ultimately decided in favour of merging ŠKODA with Volkswagen. Europe's largest automobile producer was seeking a strategic partnership with the traditional Czech brand, and welcomed the highly trained, creative and efficient workforce. 

Craftsmanship and engineering expertise had always been among the Czechs’ strengths. On 28 March 1991, Czech Industry Minister Jan Vrba and Dr. Carl Hahn as CEO of Volkswagen signed the agreement on the inclusion of the then ‘ŠKODA automobilová akciová společnost’ in the Volkswagen Group. 

On April 16, 1991, the document came into force. As a result, the Group gradually increased its share before becoming the sole owner of the joint stock company ŠKODA AUTO on 30 May, 2000.

“ŠKODA and Volkswagen represent a European success story. 25 years ago, ŠKODA was a company with a long tradition and great potential. Today, ŠKODA is the Czech Republic’s leading exporter, and one of the most dynamic automotive brands in the world,” says Volkswagen Group CEO, Matthias Müller. 

“Digitization and electromobility are presenting our industry with considerable challenges, but above all, they offer great opportunities. 

As part of the Volkswagen Group, ŠKODA has all the prerequisites to cope with change, in terms of their customers, employees and manufacturing locations. This will involve not only redefining the car, but also our company to a large extent. And we will be doing that together.”

Since then, a comprehensive coordinated investment programme has fuelled the ŠKODA brand’s dynamic development. Between 1991 and March 2016, more than 300 billion crowns (around € 11 billion) were invested in new models, research and development, and in expanding production capacities. 

With approximately 28,500 employees today, ŠKODA is one of the largest and most atttactive employers in the Czech Republic. 

The production network, including ŠKODA’s three Czech sites in Mladá Boleslav, Kvasiny and Vrchlabí, has grown in capacity thanks to Volkswagen Group affiliations in China, India, Russia and Slovakia, in addition to the assembly plants in Ukraine and Kazakhstan.

“With this 25th anniversary, ŠKODA and the Volkswagen Group have reached a new milestone along their joint path,” says Jaroslav Povšík, head of the union OS KOVOMB adding: “We can be very proud of our employees’ performance. 

Without them, the impressive success story of the past 25 years would have been unthinkable. It has once again been shown that the Community Decision model that Volkswagen has successfully implemented ensures both satisfaction and records.”

The heart of the globally successful brand still beats in Mladá Boleslav – one of the birth places of the European automotive industry. The company’s main plant and headquarters have been located in the Bohemian town for the company’s entire 121-year history. 

The carmaker’s pioneers include Václav Laurin and Václav Klement, who – impressed by motorized mobility on two and four wheels – laid the foundation for today’s automobile company in 1895. Incidentally, they were contemporaries of Ferdinand Porsche, whose birth place, Vratislavice, is situated near Mladá Boleslav.

ŠKODA is now one of the fundamental pillars of the Czech economy: In 2015 the manufacturer contributed around 4.5% of the Czech gross domestic product, accounting for around 8% of Czech exports. 

The brand consistently sets new sales records: In 2015 deliveries increased by 1.8% to 1,055,500 vehicles (2014: 1,037,200). Revenue increased by 6.2% to a new record of € 12.5 billion (2014: € 11.8 billion), and operating profit grew by 12.0% to € 915 million (2014: € 817 million). 

By the end of March 2016, ŠKODA’s global sales had climbed by 4.3% to 276,600 vehicles, thereby reaching a new record for the first three months of a year.

The upcoming SUV campaign will drive growth further. The ŠKODA VisionS show car shown at the Geneva Motor Show gave an insight into ŠKODA’s new design language in this globally prosperous segment. The corresponding series-produced model will be celebrating its world premiere at the Paris Motor Show in September.