« Volkswagen announced Phaeton prices earlier
Volkswagen Still Volkswagen – Porsche CEO »

Forecasts on Fabia raised by Volkswagen Skoda

The Volkswagen AG’s unit in Czech, Skoda Auto AS, increased its full-year forecast on sales. This is because the demand for the Roomster all-purpose vehicle and Fabia small car were up to a high. “Skoda estimates deliveries will increase about 13 percent to 620,000 units from 549,667 units in 2006,” said Chief Executive Officer Detlef Wittig during an interview at the headquarters in Skoda’s Mlada Boleslav, Czech Republic.

Only in February this year that Wittig made a forecast that sales will increase by up to 9.1 percent to 600,000. The six-month sales of the automaker made an increase of up to 15 percent from a year earlier to 310,000 vehicles as reported by Wittig, while their revenue increased between 7 and 8 percent.

The growth of profit “will be a little higher” than the sales increase as they said because Skoda has cut the production and the costs for material. The medium-term global target increase for the sales of Skoda of Wittig is 45 percent to 800,000 vehicles a year since the division expands production worldwide.

The Volkswagen’s second most profitable unit after the Audi luxury brand is planning on increasing their 2007 sales through their new version of their best-selling Fabia model. This model came to market in March and the Roomster was introduced in 2006. “The new Fabia and the Roomster are doing well, which is a good reassurance for the future,” Wittig said. The Czech division’s 2006 profit soared 40 per cent to a record 11.1 billion koruna ($520 million) as the Roomster appealed to buyers and thus the productivity improved.

The sales increased to 8.7 percent to 203.7 billion koruna. Skoda is investing a total of 350 euros or $471 million this year, and most of the money will be used for the expanding production capacity at the three existing Czech plants. However, they have no plans on adding a factory on th market even though they are experiencing a “tight labor market.”A fourth plant is absolutely out of discussion,” Wittig said. “The Czech labor market would not give us an opportunity to do that,” he added.

It was said by the government that their unemployment rate fell to 6.4 percent in May, which would be the lowest since 2004, the time Czech Republic joined the European union. Skoda also had to compete for workers as a joint venture was made between Toyota Motor Corporation and PSA Peugeot Citroen and other automakers expanded.

Wittig’s objective is to introduce a new model every year and that includes a new Sports Utility Vehicle called the Yeti, which is scheduled to come out in 2009. Also, they plan to release a Combi Fabia in 2008, which will be manufactured at the main plant in Mlada Boleslav.

Skoda alo plans on expanding in emerging countries like Russia, India, and China. This year’s division began on selling the Octavia mid-size sedan produced at the Volkswagen plant in China, and they will also manufacture the Fabia and Superb, its most expensive vehicle.

The joint Volkswagen and Skoda factory will help the automaker in avoiding a 25 percent tax on imported vehicles. “Skoda now has 50 exclusive dealerships in China and by the end of the year will have 80 outlets,” Wittig said. “Skoda has received orders in the last month for about 10,000 cars in China and expects to sell as many as 30,000 vehicles there this year,” he added.

The first Octavia in Russia will be assembled from kits staring October or November with the full production beginning in 2009. “The major growth rate in the future will be in the emerging markets, in Russia, India, and China,” Wittig said.

The production for those cars “will be done in those markets.” The division in March began selling the first complete remake of the Fabia since its introduction more than seven years ago. 1.6 million units of Fabias were already sold by Skoda since its debut in 1999.

This entry was posted on Tuesday, June 26th, 2007 at 1:45 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

southwest airlines united airlines american airlines continental airlines northwest airlines delta airlines singapore airlines graphic airlines flight tracker midwest airlines frontier airlines alaska airlines spirit airlines jet blue airlines how do i track a delta airlines flight malaysian airlines delta airlines sacramento atlanta delta airlines schedules ata airlines america west airlines southeast airlines virgin airlines tiger airlines continential airlines hawaiian airlines allegiant airlines emirates airlines malaysia airlines thai airlines philippine airlines southwest airlines fares zoom airlines indian airlines us airlines copa airlines quantas airlines china airlines monarch airlines aloha airlines cheap airlines turkish airlines south west airlines conviasa airlines discount airlines reasons airlines go bankrupt soutwest airlines continental airlines flights arrivals departures alligiant airlines klm airlines continental airlines international flights arrivals departures olympic airlines lufthansa airlines iberia airlines asiana airlines air tran airlines airtran airlines sun country airlines copa airlines arrivals korean airlines bankrupt airlines 2007 mexicana airlines copa airlines arrival information american airlines home page uk airlines austrian airlines kingfisher airlines copa airlines flight arrival information copa airlines flight arrivals north west airlines sas airlines qatar airlines skybus airlines etihad airlines tiger airlines australia jetblue airlines mesa airlines lacsa airlines scandinavian airlines alaskan airlines continental airlines reservation ted airlines swiss airlines china southern airlines eva airlines new zealand airlines cathay pacific airlines sky bus airlines czech airlines skywest airlines cebu pacific airlines southwestern airlines british airlines china eastern airlines japan airlines philippines airlines rex airlines song airlines tam airlines zoom airlines uk canada zoom airlines website ethiopian airlines major airlines brussels airlines go airlines aegean airlines sw airlines taca airlines international airlines zoom airlines canada qantas airlines vietnam airlines eos airlines zoom uk airlines zoo airlines low cost airlines northwest airlines homepage zoom airlines to bermuda zoom airlines canada toronto zoom airlines toronto charter airlines zoom airlines uk nw airlines big sky airlines caribbean airlines horizon airlines zoom zoom airlines phillipines airlines airlines marketing strategy direct contential airlines flyzoom airlines airlines to england airlines to uk zoom airlines bermuda cheapest airlines american airlines center airlines low cost london airlines south african airlines avianca airlines northwestern airlines express jet airlines virgin america airlines phillipine airlines mesaba airlines virgin blue airlines fly zoom airlines pacific blue airlines airlines zoom continental airlines home page cheap flight airlines airlines to canada australian airlines virgin airlines australia airlines discounts usa 3000 airlines hawaiin airlines american eagle airlines midwest express airlines alleigiant airlines flight airlines southwest airlines kyla ebberts mango airlines cyprus turkish airlines lot airlines garuda airlines airlines to london american airlines vacations singapore airlines australia air trans airlines el al airlines american west airlines swiss international airlines bermuda airlines continetal airlines virtual airlines with teamspeak southwest airlines reservations lan airlines klm royal dutch airlines replica philippine airlines westjet airlines virgin blue airlines australia northwest airlines to canada expressjet airlines american airlines flight status united airlines flights contiental airlines airlines tickets oasis airlines ana airlines southwest airlines airfares airbus airlines indigo airlines virtual airlines american airlines flight 191 american airlines promotion code atlantic southeast airlines sothwest airlines american airlines reservations ethihad airlines iberian airlines virgin atlantic airlines pics of airlines continental airlines arena alitalia airlines allegient airlines liat airlines emirate airlines budget airlines america airlines republic airlines hawaii airlines mohawk airlines canadian airlines list of all airlines airlines that offer military discounts jetstar airlines airlines in indonesia bmi airlines kuwait airlines sprint airlines australia airlines freedom airlines united airlines reservations great lakes airlines north american airlines southwest airlines tickets united airlines intranet northwest airlines in detroit royal jordanian airlines eastern airlines american airlines promotional codes pacific coastal airlines icelandic airlines united airlines flight information porter airlines ryan airlines pinnacle airlines lao airlines saudi arabian airlines piedmont airlines air pacific airlines smoking airlines european airlines united airlines schedule automated boarding pass southwest airlines united airlines flight status delta airlines jobs hooters airlines sri lankan airlines united airlines boston logan airport airlines in singapore spirt airlines psa airlines tap airlines fronteir airlines american airlines dc 10 plane crash chicago 1979 united airlines mileage plus continental airlines reservations most used airlines delta airlines reservations quatar airlines allegiance airlines americawest airlines alliance airlines sansa airlines polish airlines airlines which fly to california from new mexico airtrans airlines united airlines employment american airlines arena all nippon airlines contenental airlines mexican airlines bahama airlines airlines hiring flight attendants scandanavian airlines alaska horizon airlines suppliers norwegian airlines lot polish airlines asian airlines american airlines website saudi airlines ltu airlines chautauqua airlines american airlines advantage miles