Škoda Auto makes history

Cheapest Octavia to hit the market soon at a cost of just 319,000 Kč

Škoda Auto makes history

* Even in the troubled Czech market, the country's largest automaker, Škoda, brought in nearly 106 billion Kč and showed a net, after tax profit of 2.2 billion Kč. For the first time ever, the company will pay shareholders dividends.
Praha (li, glg)
At Škoda's annual press conference held in Mlada Boleslav yesterday, the Chairman of the Board of Directors Vratislav Kulhánek said that his company's turnover of 105.7 billion Kč last year meant that Škoda Auto had raised its turnover 17.3 percent compared to 1997. And that just confirmed Škoda's position as the unchallenged leader of all Czech companies, as well as being the country's largest exporter, with an export share of 9.2 percent of all Czech exports last year, the Chairman added. The positive "trade balance" in 1998 of exports of completed automobiles compared to imports of car parts and other auto equipment was 32.4 billion Kč in favor of Škoda's exports. For the first time ever, the company will pay stockholders a dividend. In all, the company will pay its shareholders 170 billion Kč.
Last year Škoda sold a total of 363,500 automobiles, an increase of 8.1 percent year-on-year. In all, the company manufactured a total of 400,000 cars in 1998. Auto sales on the Czech market dropped nearly 19 percent this year. The main importer of Škoda cars was neighbor Germany, then Poland and Slovakia. The economic crisis in Russia worked to freeze sales there. Škoda had planned to open a plant in Russia, but the crisis may complicate matters. Škoda Auto already has plants in Poland and Sarajevo.
In all, sales were down slightly last year on Felicia models (year-on-year decrease of 10.5 percent), while the Octavia was the hit of 1998, raising its sales 113.8 percent compared to 1997. Company representatives added that although used imports were given added benefits last year, the company still managed to post such great sales numbers. The fact that used imports were given import tax breaks was one of the reasons that auto sales fell nationwide, firm representatives added.
This year, Škoda plans on manufacturing and selling 240,000 Felicias and 150,000 Octavias. If it succeeds in doing that, its turnover will be 114 million Kč.