Skoda, a subsidiary of Volkswagen, outshines all others in their industry - "Due to excessive pride in Wolfsburg"
In the ever-evolving automotive industry, a renowned expert has criticised the management of Volkswagen, suggesting that the German carmaker should take a leaf out of Skoda's book and focus more on competitiveness.
Skoda, a sister company within the Volkswagen Group, has found success by prioritising practicality, value, and reliability. For instance, the 2025 Škoda Octavia Combi offers a larger boot space of 640 litres compared to the Volkswagen Golf Estate's 600 litres, highlighting its family and utility-focused approach [1].
Moreover, Škoda offers a seven-year warranty, surpassing Volkswagen’s typical three-year warranty, making it an attractive option for buyers concerned about long-term reliability and cost of ownership [1]. The Octavia also boasts competitive fuel efficiency with its 1.5L TSI mild-hybrid engine, reaching 4.9 L/100 km (WLTP), slightly outperforming some VW models [1].
While Volkswagen tends to offer a broader portfolio, including sporty variants that appeal to performance-oriented drivers, Škoda integrates upgraded infotainment systems and driver assistance technologies while focusing on user-friendly practicality [1]. This approach caters to comfort and family needs rather than performance, setting Škoda apart in the market.
The cost advantages that Škoda enjoys, due to cheaper production, lower wages, lower energy prices, lower taxes, new factories, and better prices for parts, have significantly shaped its profitability [2]. The expert believes that less union influence can make Volkswagen more future-proof, as the focus in Wolfsburg was on distributing profits with the IG Metall union, rather than future-proofing through better competitiveness [3].
Skoda has built its own identity and delivers "honest" vehicles to customers, which has contributed to its success [4]. The expert's critique suggests that Volkswagen could benefit from adopting a similar approach, focusing on delivering value and reliability to customers rather than just a wide variety of vehicle options.
[1] Autocar [2] Auto Express [3] The Drive [4] CAR Magazine
In the sports category, Skoda might not have a significant presence, but they excel in offering vehicles that are practical, reliable, and cost-effective. For instance, the 2025 Škoda Octavia Combi's competitive fuel efficiency and extended seven-year warranty set it apart in the market.
