VW seeks to curb competition from Skoda

**fastone** · 05-10-2017, 10:20 PM

An interesting story doing the rounds today:

Exclusive: VW seeks to curb competition from Skoda - sources | Reuters

Some interesting points from that story:
- Skodas consistently beat VWs when satisfaction/quality surveys are done
- Skoda's profits are the second highest in the VAG group, only beaten by Porsche (surprising that it beats Audi who must have some large margins)

If true and you're thinking of buy a Skoda, better do it before head office slaps on those higher charges!

**Antiplastix** · 06-10-2017, 08:07 AM

I ve noticed a bit of price creep over the years for Skoda in Oz. In 2009 I paid $40 k drive away for a vRS TSI Octavia, I doubt you'd get one for that now, meantime other brands have stayed stable.

**Rooboy** · 06-10-2017, 09:40 AM

The union involvement at board level in Germany is not so surprising. I can't remember which, but in one Bob Lutz's books he relates very candidly on their involvement in Opel's inability to cut costs and move forward during his tenure.

**VW Convert** · 06-10-2017, 10:51 AM

Originally Posted by fastone

An interesting story doing the rounds today:

Exclusive: VW seeks to curb competition from Skoda - sources | Reuters

Some interesting points from that story:
- Skodas consistently beat VWs when satisfaction/quality surveys are done
- Skoda's profits are the second highest in the VAG group, only beaten by Porsche (surprising that it beats Audi who must have some large margins)

If true and you're thinking of buy a Skoda, better do it before head office slaps on those higher charges!

Interesting and a minefield for VAG. To make VW more competitive against Skoda by increasing Skoda's pricing or to do so by lowering the specification of the Skoda offering.

Either option is dangerous as Skoda does not only compete against VW, lots of other brands sitting by ready for VAG to make a mistake.

Cheers

George

**Dutch77** · 06-10-2017, 05:58 PM

It's worth noting that Skoda's margin was higher than VW's, not profit.. two different things. VW still makes more than double Skoda profit wise.

At the end of the day it's understandable the German unions would be concerned with work being pushed out of their domain, particularly if Skoda is not being charged sufficient royalties for the platforms and components they're using. Fairly typical behaviour between rival subsidiaries in a larger group, much like siblings in a family.

Given Skoda has generally used older (which no doubt is more reliable) and cheaper (as VW has probably amortised most of the original development against their results) technology one would expect good survey results.

(I like Skoda, don't get me wrong, this article just seems to be heading in the wrong direction).

**JustCruisn** · 06-10-2017, 08:48 PM

Originally Posted by VW Convert

lots of other brands sitting by ready for VAG to make a mistake.

VAG already made the mistake which is why they are in damage control. Have you tried to sell a used VW lately ?
The brand has gone to pot, VW are everywhere trying to make a new name, official car on The Block kinda say it, was Suzuki for years.

A growing group of people seem to associate VW as being unreliable and emissions cheats. The stories of dealership issues and VW Australia treating customers like crap for years has tarnished the brand a lot too.
Personally I wont buy another one.

**woofy** · 12-10-2017, 04:07 PM

Originally Posted by Antiplastix

I ve noticed a bit of price creep over the years for Skoda in Oz. In 2009 I paid $40 k drive away for a vRS TSI Octavia, I doubt you'd get one for that now, meantime other brands have stayed stable.

I Paid 36k driveaway with sunroof, front sensors and metallic paint in Nov 2008 for a manual hatch. Back then Skoda did free onroads near the end of the year and with the GFC having just happened they were more aggressive. They have made more things standard like the GPS about a year later, but there has definitely been a creep. Add in that dealer deliveries are very high for Skodas compared to other makes as well. Putting out the warranty to 5yrs makes it better though, I thought by the time I bought my next which was May last year they would have done that. Missed it by a matter of months which is annoying....

**HPRS230** · 12-10-2017, 08:00 PM

Originally Posted by woofy

I Paid 36k driveaway with sunroof, front sensors and metallic paint in Nov 2008 for a manual hatch. Back then Skoda did free onroads near the end of the year and with the GFC having just happened they were more aggressive. They have made more things standard like the GPS about a year later, but there has definitely been a creep. Add in that dealer deliveries are very high for Skodas compared to other makes as well. Putting out the warranty to 5yrs makes it better though, I thought by the time I bought my next which was May last year they would have done that. Missed it by a matter of months which is annoying....

RE warranty, did you get Skoda/VW finance? If so You might have 5 year warranty...
As I did when I bought in Dec 2016. Jan 17 was when it started.

You can check via the Skoda app, just put in your VIN

**woofy** · 13-10-2017, 12:09 PM

I have 5 years warranty, but had paid the extra when I ordered in Aug 15. The car was built the first week of Jan 16 and they did have the extra warranty and servicing offer on, but only for 2015 built cars. One thing that sucks and blows about factory orders is you can't rely on what offers are around to stick. VW finance did say that they could give it to me as they have done far more things for less, but its up to the dealer to arrange it with Skoda finance who couldn't care less as they were going to get the sale either way, and so I got finance with them, but at a much higher rate and without the extras. The dealer then sold on the business later in the year after talking up building a bigger showroom etc after McClaren moved into the Skoda location.....easy guess who they are...

**HPRS230** · 13-10-2017, 01:40 PM

Originally Posted by woofy

I have 5 years warranty, but had paid the extra when I ordered in Aug 15. The car was built the first week of Jan 16 and they did have the extra warranty and servicing offer on, but only for 2015 built cars. One thing that sucks and blows about factory orders is you can't rely on what offers are around to stick. VW finance did say that they could give it to me as they have done far more things for less, but its up to the dealer to arrange it with Skoda finance who couldn't care less as they were going to get the sale either way, and so I got finance with them, but at a much higher rate and without the extras. The dealer then sold on the business later in the year after talking up building a bigger showroom etc after McClaren moved into the Skoda location.....easy guess who they are...

Ah bugger then.
Next time aye