Skoda launch set for late 2007

Australian new car buyers will have another brand from which to choose later this year. In a long awaited move, Volkswagen Australia today confirmed it will launch the Skoda brand onto the Australian market in the "latter part of 2007".

Pitched as a 'value' brand in key European markets including the United Kingdom, and now on sale in 90 countries around the world, Skoda is wholly-owned by VW Group. It builds a number of models on existing and previous generation Volkswagen platforms in seven factories across eastern and central Europe.

VW Australia says the initial models chosen to lead the brand's re-entry into the Australian market will be the Octavia sedan and wagon and the new Roomster hatch-cum-mini-MPV (more here).

It's expected it will widen the model offering early in 2008. Skoda launched its latest Golf-sized Fabia hatch at Geneva show earlier this month.

The announcement of Skoda's debut in Australia was made this morning at VW's local headquarters in Sydney. Current General Manager, Press and Public Relations at VW Australia, Matthew Wiesner (pictured with VW Australia boss, Jutta Dierks) has been promoted to head up the brand Down Under.

Wiesner told CarPoint/Carsales Skoda's aim was to launch at October's Australian International Motor Show at Sydney's Darling Harbour.

"We've got a lot of work to do before then, but we'd like to be on sale to the public by Sydney [motor show]," Wiesner said. "That said we've been working on this [the relaunch of Skoda] for around 18 months so we're more focused on getting the basics in place than any particular timetable."

Wiesner said the brand would appoint 15-18 dealers covering metropolitan and major regional centres. The dealers would all be existing VW outlets but Skoda would have its own identity.

"We're not about to go out and spend millions on building separate showrooms but we will be working with the dealers to ensure a good strong, separate identity for Skoda. The brand's catch phrase 'Simply Clever' is a good indication of how we're going to play this," Wiesner said.

In categorizing the pricing and 'tack' of the Skoda offerings, Wiesner said the brand would follow the template carved out in Europe.

"We don't have any specific [opposing] brand targets. We want to position Skoda as a great value perspective. It will be aspirational and generic European, but it is important for the brand and the group that it fights for sales in its own space."

In Europe Skoda models are priced between 5 and 10 per cent below their Volkswagen-badged equivalents.

Wiesner said there would be no downgrading of technology on the Skoda product.

"From a safety point of view, from a technical point of view, we will be specifying and equipping our cars with the relevant equipment -- ESP, DSG, petrol and diesel engines are all on the shopping list.

"The Roomster's a good example. Skoda product will be half a step away from Volkswagen's more conventional [hatchback] product," Wiesner said.

The brand is cautious regarding revealing volume projections for its launch phase.

"We've got realistic internal volume projections," Wiesner said. "But the actual volume we do comes behind the emphasis on setting up the brand correctly and positioning ourselves for a long-term position in the local market. What is more important [than any set sales target] is what the brand equates to in one, five or 10 years time."

Skoda is expected to be adventurous with its prelaunch activities, however.

"Skoda's a clean sheet of paper and a fresh brand that lends itself to a pre-launch campaign. We've got a couple of clever ideas," Wiesner said.

Originally a Czech nameplate, Skoda began building bicycles and by 1905 had commenced the manufacturer of motor vehicles making it one of the oldest established automotive brands in the world. Skoda vehicles were last sold Down Under in 1983 before the maker was part of VW.

Volkswagen first bought a 30 per cent share in the then-struggling domestic carmaker in 1991 and moved to full ownership in 2000.

Last year Skoda sold 549,667 vehicles -- a record and an increase of 11 per cent over the previous year.

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