The Czech’s bounce back
The Sydney Morning Herald - 20 July 2007 - Joshua Dowling.
Australia’s new car market is about to get more crowded. Joshua Dowling reports on a brand that’s just around the corner.
Following four years of almost 1 million new-car sales in Australia, yet another brand has outlines its plans to set up shop locally.
Škoda, the biggest car company in the Czech Republic, will be at this year’s Sydney motor show in October and a modest range of new models will go on sale soon after.
Škoda says its cars were sold in Australia in small numbers in the 1960’s, ‘70s and ‘80s, when Škoda looked like Russian-made Ladas. Much has changed since then.
Škoda has been run by the German giant Volkswagen since 1991, when it took a 51 per cent stake in the company. In 2000 it took 100 per cent ownership and today five of the six board members are German.
Before VW took over, Škodas had a reputation as outdated and unreliable transport. Under VW, the company has undergone a transformation and global sales have almost tripled in 15 years.
Today’s Škodas share most of their underpinnings and mechanicals with Volkswagens but have unique bodies. They are slightly more affordable than their German cousins because Škoda builds its cars in low-wage countries.
As well as three factories in the Czech Republic (the source of Australia-bound Škodas initially), Škoda has factories in Kazakhstan, Bosnia, Ukraine, India and China.
Škoda is a popular brand in Eastern Europe and half of all new cars sold in the Czech Republic are Škodas. However, its dominance in its homeland is diminishing and the company is increasingly relying on exports to secure its future. In 1991 it exported to 30 countries; now, including Australia, the tally is 91.
Volkswagen Australia first looked at re-introducing Škoda five years ago. At the time industry analysts speculated the reason for the delay was because executives were nervous about the reputation of Škodas in Eastern Europe in the 1970s and ‘80s. As the joke went: “Why do Škodas have heated rear windows? To keep your hands warm when you’re pushing them.”
This is why Škoda embarked on an adventurous advertising campaign when the brand was relaunched in Britain in the late 1990s, effectively poking fun at itself.
From 1997 onwards, new Škodas were basically cut-price Volkswagens and the bad reputation was ill-deserved. One advertisement depicted a new (Volkswagen-based) Škoda in a car park late at night. A security guard rings the owner and says “Sorry sir, someone has vadalised your car. They’ve put Škoda badges on it.”
Matthew Wiesner, the boss of Škoda Australia, doesn’t believe such a cheeky campaign will be necessary in Australia. “Our research shows some people in their 40s have heard of Škoda but don’t necessarily attach anything negative to it. Everyone else simply hasn’t heard of it.”
Wiesner says the real reason for the delay was that Volkswagen Australia was simply waiting for new or updated Škoda models to go into production.
In an attempt to put minds at ease about quality, Škoda points to independent research by JD Power in Britain, which ranked it second only to Lexus (and ahead of Honda, Toyota, Audi, Mazda and BMW) in its 2007 customer satisfaction survey.
Initially there will be two models in the Australian range: the Roomster (as the name suggests, a roomy family wagon) and the Ocatvia (available as a medium-sized five-door hatch and wagon).
Both are expected to cost from about $25,000 to $27,000 respectively (see Carpool). However, the company has plans to expand its line-up quickly. Škoda will introduce two new or updated models each year for the next five years.
Škoda says its advantages are roominess, clever interior design and European flair at an affordable price. The Roomster, for example, is likely to fill partly the void left by the now-discontinued wagon versions of the Toyota Corolla and Hyundai Elantra. “People are looking at and accepting different cars for different roles,” Wiesner says. “Australian car buyers are less brand-loyal than they’ve ever been and they’re looking for something that better suits their needs.”
Carpool
Škoda Roomster
RRP Prices are expected to range from $25,000 to $30,000
Why we’re driving it I sampled the Roomster and Octavia (below) in Europe this week. They go on sale in Australia in October.
Likes Clever, good-looking design, low window line in the rear doors gives kids a decent view. Safety credentials (six airbags, stability control, five lap-sash belts and adjustable head restraints and a five star crash rating). Rear seats fold away or can be removed. Huge cargo area with low, flat floor. Full sized spare. Large convex side mirrors. Good driving positon.
Dislikes Rear parking sensors will be optional in Australia (should be standard on family cars). Small centre console. The 1.6-litre petrol engine (available with five-speed manual or six speed economical but a little breathless. The 1.9-litre turbo diesel comes with five-speed manual only.
Would I buy one? Yes, the Roomster proves that practical family wagons don’t need to look boring.
Škoda Octavia
RRP From $27,000 to $40,000 depending which of the four engines you choose (1.9 or 2.0-litre turbo diesels, 2.0-litre turbo diesels, 2.0-litre petrol or turbo petrol.)
Likes Roomy cabin, well appointed. Good level of satefy equipment, including six airbags and stability control. Convenience of a five-door hatch and its large cargo area. Option of a wagon.
Dislikes Relatively noisy. Small side mirrors. Anonymous styling.
Would I buy one? It depends on the final price. It’s an OK car but not outstanding. There are better vehicles in the medium class.