The Volkswagen Group, part of which is the Czech company Skoda, a few years ago approved the conversion scheme to increase the differentiation between its brands.
As a result of planned reforms Skoda company should focus on production of cars of initial level. However, this does not mean that the brand should be fully budget, according to Autocar.
“Skoda for many years has followed a clear strategy, where the ratio of price and quality play a key role. We always position our car at the end of the relevant segments, allowing you to make a “smart understatement” and to keep the competitive price,” – said the head of Skoda Bernhard Mayer.
According to Mayer, the company could start to develop and release a new entry level model, but it is necessary to open new production facilities. However, at the moment this is impossible because the manufacturer can barely keep up with the coverage supply on current models, particularly on the successful trio of crossovers – Kamiq, Karoq and Kodiaq.
“The demand for Skoda cars exceeded the supply, so we are looking at expanding production capacity. Perhaps with the advent of the new plants we select a separate line for the production of entry-level models,” concluded Meyer.