A škoda year in review

Transcription

1 2012 A škoda year in review

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3 Contents 2012 A Škoda year in review Foreword by the Chairman of the Board of Management Prof. Dr. h.c. Winfried Vahland 4 Board of Management 6 A class of its own the third generation of the all-new ŠKODA Octavia makes its debut 8 The new ŠKODA Octavia a car with style an interview with head designer Jozef Kabaň 14 Shaping the Company s future the ŠKODA global growth strategy impacts many different areas. Investments into additional production and storage capacity, IT, logistics networks and staff training pave the way to the next level 16 Small car, big impact the ŠKODA Citigo was designed to appeal to new target groups and customers worldwide 21 For a greener future sustainable development is important for ŠKODA AUTO. With the GreenFuture project the Company has entrenched sustainability even more firmly within the Company 22 The new class of ŠKODA with the ŠKODA Rapid, ŠKODA introduces the youngest model series into its portfolio 26 Breaking down borders with its ambitious model offensive and international growth strategy ŠKODA sets the course for a continued successful global development 30 Employees are ambassadors of our brand abroad an interview with ŠKODA Board of Management member for Human Resources, Bohdan Wojnar 34 Highlights of the year 2012 has been an extremely busy but also very successful year for ŠKODA with the launch of new models, new sales records and many other remarkable events 35 Simply Clever is a reality throughout the Company an interview with ŠKODA Board of Management member for Technical Development, Dr. Frank Welsch 40 The fascination of tradition at the redesigned ŠKODA Muzeum in Mladá Boleslav visitors can embark on an inspiring journey through 117 years of the ŠKODA brand s history 42 A truly historic performance ŠKODA goes on to win the most important international rally championships as well as six national rally competitions in Tradition-minded, team-spirited and hungry for success an interview with the Head of ŠKODA Motorsport, Michal Hrabánek 53 Product portfolio with the launch of the ŠKODA Rapid, the brand s model range now encompasses seven model series for virtually all market segments A Škoda year in review 3

4 Foreword We have had another extremely successful year our eighth consecutive record year; a year in which ŠKODA AUTO set the right course for the future; a year in which we continued to forge ahead with our growth strategy in all areas. In 2012, we sold a total of more than 939,200 vehicles and therefore exceeded the previous year s record deliveries. We are also well on our way to reaching our strategic sales target of at least 1.5 million ŠKODA automobiles per year by We were able to strengthen our position in key markets in 2012, despite the difficult situation in a number of European markets. Never theless, the outlook remains positive: The global automobile markets will continue to grow and our model offensive will provide the necess ary momentum. In 2013 alone, we will be introducing eight new ŠKODA models, beginning with the new ŠKODA Octavia, the heart of our brand, which we recently presented at the Geneva Motor Show as Sedan, Combi estate car and 4x4 Combi estate versions. With record investment at our sites, we also created the neces sary conditions for the continued growth of our Company. Positive sales development and successful measures to boost efficiency ensured that our financial performance remained largely stable despite difficult conditions worldwide. Sales revenue increased by 4.0% year-on-year to reach CZK billion and operating profit reached CZK 17.9 billion. This gives us the strength to keep ŠKODA AUTO on a steady growth course. Prof. Dr. h.c. Winfried Vahland Chairman of the Board of Management The most important pillar of our continued growth is our model offensive: Over the next few years, we will be introducing a new or substantially-revised ŠKODA vehicle onto the market every six months on average. We started out with the ŠKODA Citigo our Company s first venture into the fast-growing small car segment. This was followed by the ŠKODA Rapid, which combines the finest qualities ŠKODA has to offer space, functionality and value for money. It is also the first car with our new ŠKODA design. The new ŠKODA Rapid is positioned within the ŠKODA model range between the ŠKODA Fabia and ŠKODA Octavia: It is a new class of ŠKODA. The final world premiere of the year was the new ŠKODA Octavia in December 2012: The third generation of our bestseller was welcomed with enthusiasm by public and experts alike. It is set to continue the model s on-going success story, which began in We will use the strength of our brand to convince people of our values in impressive new models. ŠKODA automobiles are a reliable and practical aspect of our customers life, with lots of smart and useful Simply Clever details A Škoda year in review

5 Simply Clever also applies to our vehicles themselves, and defines our thoughts and actions throughout the entire company. We achieved important milestones in 2012, strengthening our market position, especially in growth markets. In December, we launched production of the ŠKODA Yeti at the Nizhny Novgorod plant, in cooperation with Volkswagen and the Russian manufacturer GAZ Group, to meet the steadily growing demand for this specific model in the Russian market. To secure our future growth, we made substantial investments in many areas: The ŠKODA Octavia and Rapid production line at our Mladá Boleslav headquarters was expanded from 800 to 1,200 units per day. Local production lines for axles were also modernised and production retooled for state-of-the-art TSI petrol engines. Our parts centre was expanded to meet constantly growing demands, and a new, high-performance energy-efficient IT centre was also put into operation. After extensive remodelling, modernisation and expansion, the Vrchlabí plant began production of the advanced DQ200 seven-speed dual clutch transmission, while in Česana, construction of a new engine testing centre got underway. At our new Lean Centre, we are already training employees from all divisions in important subjects, such as lean production methods, efficiency and optimised process control. Regular employee training is vital to our global presence. ŠKODA employees abroad must not only possess the necessary professional skills, but also the will and capability to adapt to new and often unexpected challenges. For this reason, we launched a number of different programmes in 2012 to prepare our employees for working abroad and to support them while they are away and when they return. These initiatives enable our employees to serve as capable ambassadors of our brand abroad. Although ŠKODA AUTO has its eyes firmly fixed on the future, the Company is understandably proud of its over 117-year history. In recognition of this, and to provide a fitting setting in which to tell the fascinating story of our Company, we have completely redesigned and remodelled the ŠKODA Muzeum in Mladá Boleslav. Visitors to the new museum not only have the opportunity to admire magnificent ŠKODA cars from the past, but also to appreciate the power of the ŠKODA brand. The strength that comes from being part of a long tradition is not only evident at the new ŠKODA Muzeum. The successful track record of our motorsports team is also rooted in our Company s more than 111-year motorsports tradition and its wealth of experience was the most successful year to date in our motorsports history: The team continued its winning streak with victories in the European Rally Championship and the Asia Pacific Rally Championship as well as six national rally competitions. ŠKODA Motorsport exceptional achievements were exemplified by its hat-trick in the prestigious Intercontinental Rally Challenge: In 2012, ŠKODA Motorsport brought home both the driver and manufacturer championships for the third year in a row. In the crucial area of sustainability, we are open to new ideas setting ambitious goals and finding new ways to reach them. Responsibility towards people and the environment defines the actions of ŠKODA AUTO, from vehicle development through production to recycling. We have therefore established the ambitious GreenFuture environmental project to entrench sustainability even more firmly throughout the Company. We aim to make individual mobility as sustainable as possible. We already have more than 50 models in our line-up with emissions of less than 120g CO 2 /km including almost a dozen with less than 100g CO 2 /km. We are currently testing a fleet of electric cars in everyday driving conditions, which will provide us with important insights for electric driving. One thing is clear: 2012 would never have been such a successful year without a team that is prepared to do everything in its power to support the goals of our Company. The sales records, the strength of our brand, the exceptional quality of our vehicles, our strong reputation at home and abroad: All of these achievements are thanks to the hard work and dedication of our colleagues and we are extremely grateful to all of them. We have ambitious plans for We will do everything to ensure that the ŠKODA AUTO success story continues! This fascinating company with its fine history is worth every effort. Yours Prof. Dr. h.c. Winfried Vahland Chairman of the Board of Management 2012 A Škoda year in review 5

6 Board of Management Taking it to the next level: Successful implementation of the ŠKODA growth strategy demands top performance from all divisions. ŠKODA will increase its worldwide annual sales to at least 1.5 million units by Besides Europe, the strongest growth is likely to come from the emerging markets. Prof. Dr. h.c. Winfried Vahland, Chairman of the Board of Management We increased our deliveries even though markets were difficult. The situation in the markets continues to be demanding. However, ŠKODA remains on the offensive with new models. Werner Eichhorn, Board Member for Sales and Marketing The successful implementation of the ŠKODA growth strategy creates many opportunities for purchasing in the procurement of purchased parts and services, as well as in planning and monitoring. We are deter - mined to use these opportunities to our advantage. Dipl.-Ing. Karlheinz Hell, Board Member for Purchasing A Škoda year in review

7 We continue to invest in new products. Our expenditures clearly show that we are consistently pursuing our goals and implement them with concrete measures. We have set the right course and will continue to do so. Dipl. Kfm. Winfried Krause, Board Member for Commercial Affairs ŠKODA is preparing its locations for growth in the years to come. The production is aimed at creating the necessary conditions for this. We are pursuing our plans consistently. Dipl.-Ing. Michael Oeljeklaus, Board Member for Production and Logistics The new ŠKODA Octavia shows how ŠKODA is consistently following its own path. It boasts the qualities of a mid-sized car at a compact car price. It is the ideal car for demanding, self-assured customers. Dr. Ing. Frank Welsch, Board Member for Technical Development ŠKODA advanced in all relevant fields. We need a top team for our growth plans. We are continually improving our staff s skills level as well as hiring external talents. Ing. Bohdan Wojnar, ŠKODA Board Member for Human Resources 2012 A Škoda year in review 7

8 ŠKODA Octavia A class of its own the new ŠKODA Octavia A Škoda year in review

9 For ŠKODA, the third generation of the ŠKODA Octavia is more than just another new car. The rise of ŠKODA since the Nineties is closely tied to the sustained popularity of the ŠKODA Octavia the car that is the heart of the brand. Customer expectations for the new model are correspondingly high. It was one of those moments when everything comes together in this case, decades of experience and the latest insights, knowledge and intuition, engineering expertise and a passion for cars: On 11 December 2012, the third generation of the ŠKODA Octavia is about to make its world debut at the redesigned ŠKODA Muzeum in Mladá Boleslav. It is shortly before two o clock. This is no ordinary event. Today will have far-reaching consequences and set the course well into the future what is being presented here, after all, is a successor to the most successful ŠKODA model ever. Success is an obligation. The first journalists and camera teams begin to arrive more than two hours before the official start of the event. They come from the Czech Republic, of course, as well as Germany, Switzerland and Austria, but also from farther afield Ireland, the UK and even India. Many of them have made a long and difficult trip to be here. Nobody 2012 A Škoda year in review 9

10 ŠKODA Octavia Greeted by thundering drums and welcomed by the ŠKODA Board of Directors, leading ŠKODA representatives and the international press: The new ŠKODA Octavia made a lasting impression at its festive premiere in the ŠKODA Muzeum in December wants to miss the ŠKODA presentation of the latest version of its most important model and top-seller. For now, the new ŠKODA Octavia is still under wraps, concealed under a light-green sheet in the lobby of the ŠKODA Muzeum. Some of the more inquisitive guests tentatively run their hands over the material: along the door handles and bonnet, eager to learn more. But it is not time yet. The suspense is rising. Everyone makes their way into the Museum s huge new assembly hall. An enormous stage with turntable and 270-degree projection screens awaits journalists from around the world. Drums roll, and a burst of loud music announces that the time has come the countdown begins. ŠKODA Chairman of the Board of Management Prof. Dr. h.c. Winfried Vahland drives onto the stage in a bright red latest-generation ŠKODA Octavia. All cameras are trained on him and the car. Amid a flurry of camera flashes, Vahland addresses the audience, but perhaps also just a little the car that stands behind him on the turntable, shiny and new: He tells the press, the ŠKODA Octavia is a milestone for the Company, the heart of the brand. The new model is a good car made even better. The ŠKODA CEO assures the audience that new cars are the best concept against weak markets in Europe. The more than 3.75 million ŠKODA Octavia cars sold since the first generation was launched in 1996 certainly tell a convincing story. The ŠKODA Octavia has made the ŠKODA brand what it is today: a successful international player that sells cars in more than 100 countries worldwide. Winfried Vahland names the strengths of the new ŠKODA Octavia: It is roomy, practical, safe, timelessly elegant, technically advanced, reliable and affordable and, naturally, Simply Clever with many practical details. The ŠKODA Octavia has all the right ŠKODA genes and delivers exactly what customers need. The ŠKODA Octavia is, and always has been, a very special car that boasts the qualities of a mid-range vehicle at a compact-car price. The total package of generous space, timeless design, high functionality, sophisticated technology and A Škoda year in review

11 Reinterpretation of a modern classic: The third generation of the ŠKODA bestseller is more impressive than ever with striking looks, strong inner values and the same exceptional price/performance ratio proving that good things don t have to be expensive. affordable price make the ŠKODA Octavia unique in its class. Since 1996, the ŠKODA Octavia has always offered a bit more car. That is its formula for success. Winfried Vahland concludes: The new Octavia is our best. It is a class of its own. The scene changes: The new Board Member for Technical Development Frank Welsch drives onto the stage in a silver-coloured ŠKODA Octavia and pays tribute to the engineers, whose expertise and hard work went into the new ŠKODA Octavia, setting new standards for aerodynamics, exhaust emissions and fuel economy. And who also succeeded in making the new generation up to 102 kilos lighter despite its larger interior, improved safety equipment and extensive comfort features. With fuel consumption of only 3.3 l/100 km and emissions of 87 g CO 2 /km, the GreenLine variant of the new ŠKODA Octavia is especially fuel-efficient. Frank Welsch points out that with the sales targeted for this major high-volume model, the new ŠKODA Octavia will help fulfil the Company s responsi bility for the environment, resources and people. At the same time, it also features the latest driver assistance systems for convenience and safety, which were previously found only in luxury and high-end models and are now available for the first time in a ŠKODA compact car. ŠKODA Octavia customers have always appreciated the car s generous space. But the new generation goes even further and offers substantially more room than its already 2012 A Škoda year in review 11

12 ŠKODA Octavia More and less: longer and wider, with more luggage space, more legroom, more headroom, more safety and more assistance systems. But also: less weight, lower fuel consumption and lower CO 2 emissions the ŠKODA Octavia is in a class of its own. spacious predecessor, according to Frank Welsch, and sets a new benchmark in its segment: No other compact car has a longer passenger compartment, greater legroom or more headroom in the back. There is also added headroom for front-seat passengers, and more elbowroom in the front and back. The ŠKODA Octavia s biggest asset has always been its luggage compartment, and that applies more than ever to the new model, which now boasts a capacity of 590 litres a new best-in-class. Luggage for five people or a whole week s worth of shopping present no problem at all. With the backseat down, the volume expands to 1,580 litres to allow a surfboard or even a wardrobe to fit inside. The new ŠKODA Octavia also features lots of typically-škoda Simply Clever ideas things that make life easier for ŠKODA Octavia drivers. Frank Welsch mentions the reversible floor covering for the luggage compartment: one side with elegant carpeting; the other with a washable rubber coating ideal for wet ski-boots or even transporting sacks of potatoes. Flexible cargo elements to prevent items from sliding around in the luggage compartment can easily be folded away. Frank Welsch also points out the safety vest stowed under the front seat, the ice scraper built into the fuel filler cap and the smartphone holder integrated into the cup-holder. Jozef Kabaň is the last to address the media. The head designer of ŠKODA is responsible for the striking looks of the new ŠKODA Octavia. Born in Slovakia, with a strong international reputation, Kabaň speaks in German with feeling and enthusiasm: Common sense and passion must come together in a car. Or, in his own words: Despite all the features for the head, the heart must not stay unmoved. People seem to understand exactly what he means. The audience feels his enthusiasm as he runs his hands along the body of the car. Clear, precise, timeless design was the requirement for the ŠKODA Octavia. The third generation must project value and selfassurance and be able to maintain its appeal over the years. Kabaň s final words sound like a heartfelt farewell to a good friend who must now make his way on his own: May your story be a successful one, he says as he steps back with a last critical glance over the new car. In one of the many interviews Kabaň gives after the world premiere of the ŠKODA Octavia at the ŠKODA Muzeum, he talks of his pride in continuing the ŠKODA Octavia s long tradition with this new model. Of course, he hopes that the success of this model will earn the ŠKODA Octavia a place in the brand museum sometime in the future. Expertise and passion for ŠKODA, two concepts that are inextricably linked. Key production areas at the main plant in Mladá Boleslav were modernised and expanded for production of the new ŠKODA Octavia. The new model carries the high expectations of the entire workforce. The ŠKODA Octavia is closely tied to the rise of the ŠKODA brand, and, for that reason, is considered the heart of the ŠKODA brand A Škoda year in review

13 Cutting a fine figure then, as now: the ŠKODA Octavia through the years. ŠKODA Octavia building on decades of success A new era began for the ŠKODA Octavia in 1996: ŠKODA AUTO, now part of the Volkswagen Group, presented a totally re-developed car and named it Octavia in honour of its successful predecessor, the eighth ŠKODA model produced after the end of the Second World War hence the name. More than 1.4 million vehicles of this first generation of the modern-day ŠKODA Octavia had already been sold by The second generation is launched in From the start, it sets new standards for quality, reliability, practicality and value for money. ŠKODA Octavia cars are built in Mladá Boleslav, Vrchlabí, Kaluga, Aurangabad (under the name Laura ), Ust-Kamenogorsk (Kazakhstan), Bratislava (Slovakia) and Solomonovo (Ukraine). In 2007, production of the ŠKODA Octavia begins at Shanghai Volkswagen in China. Sold under the name MingRui, the model soon becomes a top-seller in China, too. An estate car ( Combi ), a four-wheeldrive off-road version ( Scout ) and the sporty RS version of the ŠKODA Octavia are also sold alongside the sedan. The ŠKODA Octavia serves as the basis for the first electric vehicle of the brand, a concept car based on the ŠKODA Octavia Combi with the name Green E Line, which is presented at the Geneva Motor Show in A fleet of ten of these electric vehicles began field trials in everyday driving at the end of Demand for the Octavia exceeds anything ŠKODA has seen before, with more than 3.75 million modern ŠKODA Octavia vehicles of the first and second generations sold between 1996 and the end of 2012, making it by far the top-selling model in the long history of the ŠKODA brand. No other model series symbolises the brand s resurgence since the Nineties like the ŠKODA Octavia, the heart of the brand. The ŠKODA Octavia will be even more vital to the ŠKODA brand in the future. The latest model raises the bar in the compact car segment and will strengthen its unique position in this class. The impressive sedan offers unbeatable spaciousness, new design, high functionality, innovative systems for enhanced safety and comfort, excellent fuel economy, countless Simply Clever ideas and typical ŠKODA value for money. The new, third generation will also play a crucial role in the ŠKODA growth strategy. ŠKODA is aiming to sell at least 1.5 million vehicles a year worldwide by 2018, with a new or revised model scheduled for release every six months over the next few years. The new ŠKODA Octavia will continue this offensive, following on from the ŠKODA Citigo and the ŠKODA Rapid. The new ŠKODA Octavia will be of particular significance as the ŠKODA brand s main volume model A Škoda year in review 13

14 A Škoda year in review

15 Interview Clear lines, clean surfaces, attention to detail Jozef Kabaň and his team aimed explicitly for a car with style. Interview with head designer Jozef Kabaň The new ŠKODA Octavia a car with style When Jozef Kabaň talks about cars, it sounds like a declaration of love. His words are full of passion. I can t help it, he says, by way of explanation, I just love cars. The modest and reserved head designer of ŠKODA has worked for Volkswagen, Audi and Bugatti and, over the course of his career, made himself a name as one of the most creative automobile designers around. For ŠKODA, Kabaň developed a new design language that will define all future models. The ŠKODA Octavia is particularly close to his heart: He understands how crucial this model, in particular, is to the brand and the Czech people, who have regarded the ŠKODA Octavia as the pinnacle of Czech engineering expertise for many years. Mr Kabaň, what s so special about the design of the new ŠKODA Octavia? Clear lines. clean surfaces, attention to detail a really attractive car with style the true ŠKODA Octavia. Doesn t every designer say that about their latest masterpiece? Well, perhaps. But I believe we have really managed to combine the maximum with the minimum. What I mean is: maximum impact with minimum visible design complexity. I love minimalism! Can you be more specific? See the dynamic effect of the upswept window line in the rear doors? We call this design detail the fin. Or the rear of the car: clearly-defined, tidy, clean for me, that is pure reduction to the essential. The front headlights also look kind of playful That s right. Successful car design connects on several levels, not just one. With the front headlights, we have extended the vertical lines of the front grille into the headlight itself as an illuminated element. The effect is not unlike a woman s eyelashes beautiful and sensual and also pays tribute to the art of traditional Bohemian glass-working. But the overall impression of a car is actually about something completely different. How do you mean? Proportions. Proportions are what count. We ve given the new ŠKODA Octavia a longer wheelbase than its predecessor which, with its shortened front overhang, makes the car look more dynamic. At the same time, there is a smooth and harmonious flow to the side view. The new car looks wider and it is. That gives it a very self-assured stance. It looks good on the road. That is what this is all about: dynamism and repose, clarity and concision. If you compare the new ŠKODA Octavia with the previous model then I see that it has grown up in more than one way. Our job was to create a shape for the most successful member of the ŠKODA model family, which would appeal to customers worldwide. The ŠKODA Octavia is the heart of our brand and a key model in our growth strategy. Its design must be distinctive and appeal to many different target groups. What an exciting task! As I see it, our ŠKODA Octavia has grown up. How do you balance the diverse design expectations of a global audience with the personality a car needs to succeed in today s marketplace? There s only one answer to that: to create your own style instead of following trends. It is important to have a clear design language that will remain attractive over time and also works on an international level. I strongly believe that we have achieved this in an exemplary fashion with the new ŠKODA Octavia. If we said design is important, but not everything, would you tend to agree? Absolutely. It s about creating a logical and plausible emotional connection between a car s physical appearance and its inner values. And that s precisely what ŠKODA is all about: inner values. It is our job as designers to make them visible A Škoda year in review 15

16 Expansion of production capacity at the Mladá Boleslav plant The Mladá Boleslav plant has been set up for the start of production of the third generation of the successful ŠKODA Octavia model and the new compact sedan, the ŠKODA Rapid. The new class within the ŠKODA model range is positioned between the existing ŠKODA Fabia model and the new ŠKODA Octavia, which are also built on site. Substantial expansion and comprehensive modernisation is needed to allow up to 1,200 vehicles per day to be built on the Rapid and Octavia lines alone. Once expansion has been completed, a total capacity of up to 2,400 vehicles per day, which includes ŠKODA Fabia production at the site, will be available at the main plant in Mladá Boleslav. The two new models, the ŠKODA Rapid and, naturally, the new ŠKODA Octavia, the brand s top-selling model, will play a decisive role in successful implementation of the ŠKODA growth strategy, which calls for delivery of at least 1.5 million vehicles per year to customers by 2018, including many new buyers worldwide. Investments Shaping the Company s future The ŠKODA global growth strategy impacts many different areas. On its way to the next level, the Company is adding production and storage capacity, updating IT and logistics networks and training staff in the relevant fields. In summer 2012, during works holidays at the main Mladá Boleslav plant, preparations got underway for the start of production of the ŠKODA Rapid. Construction of a new engine testing centre was also scheduled to begin in nearby Česana in autumn. At the Vrchlabí plant, meanwhile, a state-ofthe-art transmission production facility was completed in late 2012: At ŠKODA AUTO, clearly, all signs point to innovation and growth. Extraordinary goals require extraordinary efforts: ŠKODA aims to increase global sales to at least 1.5 million vehicles per year by 2018 a target that cannot be reached without considerable effort. Investments in production, logistics, research and development, and employee training are all on the agenda. Current figures confirm the momentum behind the growth of ŠKODA AUTO: In the more than 20 years since ŠKODA AUTO became part of the Volkswagen Group in 1991, a total of almost CZK 250 billion has been invested in the Czech company. In 2012 alone, the Company invested CZK billion in property, plants and equipment, with focus on its European sites. ŠKODA AUTO was recently named Investor of the past two decades by the Czech Ministry of Industry and Trade in partnership with the Czech Invest Agency and the Association for Foreign Investment a Škoda year in review

17 Expansion of axle and engine production at Mladá Boleslav plant ŠKODA is also making broad investments in new manufacturing technologies and gradually increasing capacity at many plants and in many areas to meet the demands of the ŠKODA model offensive. This especially applies to the main plant in Mladá Boleslav, where production capacity for front and rear axles is being optimised through expansion measures. The production line has been extended to a total length of 60 metres, fully modernised and the level of automation increased, to boost capacity for rear axle production from 1,000 to 1,700 axles per day. As part of its investment programme in the Czech Republic, ŠKODA AUTO has also begun production of new petrol engines at the Mladá Boleslav plant at a rate of up to 2,200 units of 1.2 and 1.4 TSI engines per day. These engines are lighter, enabling lower fuel consumption and emissions. Start of ŠKODA Yeti production in Russia On 6 December 2012, ŠKODA launched production of the ŠKODA Yeti in collaboration with Volkswagen Russia and the Russian automobile manufacturer, GAZ Group, at the Nizhny Novgorod plant. The timing could not have been better: Demand for the ŠKODA Yeti climbed by almost 111 per cent year-on-year in Russia in In preparation for the start of production in Nizhny Novgorod, the ŠKODA Yeti had been produced here as an SKD model since late The new ŠKODA Octavia will also be built at the same facility from mid-2013 onwards A Škoda year in review 17

18 Opening of new Lean Centre in Mladá Boleslav ŠKODA AUTO also sent a clear signal with the opening of its new Lean Centre in Mladá Boleslav. With four floors, more than 5,600 m 2 of space, the new Lean Centre is the largest training centre of ŠKODA AUTO in the Czech Republic. The focus here is on employee training in the context of the Company s global growth strategy. Employees need to learn how to make processes simpler, more efficient and more environmentally-compatible. Theoretical and practical courses in assembly, body construction and process optimisation for production and administration are offered for suppliers as well as ŠKODA employees. According to Michael Oeljeklaus, Board of Management member for Production and Logistics, the new Lean Centre will help secure the long-term growth and competitiveness of the Company. Transmission manufacture in Vrchlabí The Vrchlabí plant, which formerly built the ŠKODA Octavia and, until the end of last year, the ŠKODA Roomster, will now manufacture the modern, highlyinnovative DQ200 seven-speed dual clutch transmission. The new training centre for transmission assembly, logistics and quality labs will help make Vrchlabí one of the most modern transmission production facilities in the entire Volkswagen Group. The plant was chosen to build the new transmission in 2011, and no fewer than 1,000 units per day have been produced here since September Capacity is set to increase by 50 per cent from mid ŠKODA Roomster production resumed at the Kvasiny plant in January A Škoda year in review

19 Construction of new engine testing centre in Česana The new engine testing centre in Česana will give additional impetus to the more-than-100-year tradition of ŠKODA engine development and production. ŠKODA is establishing itself more than ever as an additional competence centre for engine development within the Group, states Chairman of the Board of Management Prof. Dr. Winfried Vahland at the official foundation-laying ceremony on 25 September The initial construction phase, with 21 new engine and component testing bays at its core, is scheduled for completion by late With this project ŠKODA AUTO will create 40 new jobs. It represents one of the largest development investment projects in the Czech Republic currently. Opening of the redesigned ŠKODA Muzeum There has also been substantial investment in the ŠKODA brand: 26 November 2012 saw the official opening of the redesigned ŠKODA Muzeum in Mladá Boleslav, where selected ŠKODA automobiles are presented in a 1,800 m 2 multimedia landscape, offering a totally new perspective on more than 117 years of fascinating company history. The redesigned, remodelled museum will play a key role in future ŠKODA brand communications A Škoda year in review 19

20 Expansion and modernisation of parts centre The parts centre in Mladá Boleslav is being expanded and completely modernised for future tasks. The total area of 50,000 m 2 will be doubled to more than 100,000 m 2. Once completed, the warehouse, with eleven aisles of fully-automated 40-metre-high storage bays will be one of the tallest buildings in Mladá Boleslav. Around 500 employees will be able to process up to 24,000 orders a day from around the world. The current range of parts and accessories will be increased by 50 per cent by 2018 to include 214,000 different parts. New IT centre Another of the key investments of ŠKODA AUTO is the new IT centre in Mladà Boles lav, with close to 200 computer racks and a total of almost 2,500 data storage and data processing servers. The new system provides seven ŠKODA AUTO and Volkswagen Group production locations, as well as 106 import companies worldwide and 330 ŠKODA dealers in the Czech Republic and Slovakia, with the necessary IT support. This increased performance will boost energy efficiency by 30 per cent compared with the old IT centre. Further expansion is possible at any time A Škoda year in review

21 ŠKODA Citigo Smallest ŠKODA makes a big impact Young singles, seniors and families looking to buy a second or third car these are the target customers for the most compact model in the ŠKODA line-up, the ŠKODA Citigo. The sixth model line of ŠKODA is built to appeal to urban drivers who appreciate a compact, agile and safe car that makes the best possible use of its space. After its debut in the Czech Republic as three-door version in November 2011, the car was soon named Best City Car and Internet Car of the Year. The five-door model was officially presented as a world premiere at the Geneva Motor Show in March The ŠKODA Citigo will play a key role in the ŠKODA growth strategy, and was designed to appeal to new target groups and customers worldwide. Compliance with the latest safety standards was also a high priority. The success of these efforts was confirmed by the car s top five-star rating in the Euro NCAP crash test, which established the ŠKODA Citigo as one of the safest vehicles in its class. Highly-efficient engines also make the ŠKODA Citigo one of the most fuel-efficient options in the small car segment. This is particularly evident in the ultra-efficient Green tec version of the ŠKODA Citigo, which boasts an impressive fuel consumption of only 4.1 l/100 km and low emissions of 96 g CO 2 /km. ŠKODA is also taking a new approach to communications with the ŠKODA Citigo for example partnering with well-known DJ and producer Tiësto and launching a new mobile ŠKODA MEET app, targeted at young people. The appeal of the new ŠKODA Citigo was affirmed by the success of two special editions on display at last year s annual gathering of car buffs at Lake Wörthersee in Austria: Both the ŠKODA Citigo Rally and the ŠKODA Citigo DJ Car on show there were a big hit with fans and not just with tuning enthusiasts. The crowd has fun with the Rally version of the SKODA Citigo at the 2012 Wörthersee car meet. It became a major attraction for all car enthusiasts and tuning fans present A Škoda year in review 21

22 Sustainability For a greener future Sustainable development has long been both an aspiration and an obligation for ŠKODA AUTO. Now, the Company has launched the GreenFuture project to entrench sustainability even more firmly within the organisation. A steering committee, reporting directly to the Board of Management, manages all sustainability activities relating to products, production and processes. This puts ŠKODA AUTO in position to implement the Group Strategy aimed at making the Volkswagen Group the most sustainable automotive company in the world by He has one of the most exciting jobs there is at ŠKODA AUTO currently. As head of the newly-created GreenFuture project, Pavel Vacek is responsible for making sustainability even more of a priority at ŠKODA AUTO. He looks forward to this challenging and complex task: We have ambitious goals at ŠKODA AUTO for our model offensive, our growth targets, and also for our sustainability management, he explains. Vacek aims to bundle all of the Company s sustainability activities together for maximum impact. At the same time, new goals will be defined and pursued: Sustainability is a complex issue that concerns all divisions of the Company and all hierarchical levels. He adds: Our task covers not only a wide range of topics, but also a tremendous depth. That is what makes it so fascinating. It also shows just how big a challenge we face with GreenFuture. The major significance of sustainability for ŠKODA AUTO and therefore for the Green Future project was underlined by Chairman of the Board of Management Prof. Dr. h.c. Winfried Vahland in the foreword to the current Sustainability Report: A healthy environment, good working and living conditions and a stable economic framework are all essential to our success. Responsible conduct is therefore fundamental to securing the future of our Company. The latest Sustainability Report also charts new territory for ŠKODA AUTO: Although this is the third report of its kind, it is the first to follow the internationally recognised guidelines of the Global Reporting Initiative and therefore offer the degree of transparency now expected at international level. Minimising environmental impact GreenFuture focuses on topics like resource conservation, recycling and emissions reduction. In line with its Group Environmental Principles, this specifically means reducing the CO 2 emissions of the new vehicle fleet and, on the production side, significantly lowering energy and water consumption, as well as waste volumes and emissions. The principle behind this is prevention, then recovery, then disposal. Michael Oeljeklaus, ŠKODA Board of Management member for Production and Logistics elaborates: We must minimise environmental impact as far as possible from vehicle development all the way through to professional recycling. With GreenFuture, we have established this as a standard within the organisation A Škoda year in review

23 As a sustainably responsible company, ŠKODA AUTO sets high standards for production in particular. Optimised pollution protection, water consumption, groundwater protection and waste prevention are relevant in this area. Project manager Vacek regards production as a focal point for the work of GreenFuture: Further optimisation of production processes is a top priority. We see plenty of potential to enhance environmental protection and reduce energy consumption in this area. Use of the latest technology will facilitate this: In October 2012, ŠKODA AUTO installed an ultra-energy-efficient PXL servo press system for stamping sheet metal parts at its Mladá Boleslav plant. What is special about this system is that the energy released from the stamping process can be reused. In continuous operation, this consumes around 15 percent less energy. All areas of production are assessed for their potential for environmental protection, which is then exploited as quickly as possible: For example, the EDIS project (Czech abbreviation for Ekologická Doprava Interní ŠKODA) launched in 2011, which aims to reduce internal transport between Company locations through process optimisation, and limit environmental impact by introducing electrically-powered trailers. Product responsibility is a high priority Environmental considerations play an important role in production at ŠKODA AUTO, and also, traditionally, in the products themselves. ŠKODA vehicles have had a high level of efficiency, low fuel consumption and low emissions for many years. More than 50 vehicles in the current ŠKODA model line-up produce less than 120 g CO 2 /km. Any potential for enhancing environmental compatibility is consistently exploited, and therefore weight reduction to minimise consumption and emissions is also a priority in all new vehicle development. For example, the new, third-generation ŠKODA Octavia, launched in early 2013, weighs up to 102 kg less than the previous model, thanks to consistent lightweight technology, advanced body and engine construction, the use of high-strength and extremely high-strength steels and careful choice of materials. Since 2010, there has been at least one GreenLine variant in each model series that offers even higher standards of efficiency and environmental-compatibility at the same level of comfort and performance. ŠKODA also pursues the goal of lower fuel consumption and emissions with the Green tec package, which is available throughout the entire model range and includes an automatic start/stop system, brake energy regeneration and tyres with optimised rolling resistance for even greener, more fuel-efficient driving. ŠKODA also has the key future topic of e-mobi lity firmly in its sights. It is currently testing a fleet of ten electric-powered ŠKODA Octavia Green E Line cars in everyday driving conditions. Initial findings will become available over the course of The Company aims to have low-emission vehicles ready for series production as soon as possible. The test fleet is an important milestone along this route A Škoda year in review 23

24 Sustainability Product responsibility does not end for ŠKODA with the sale of its cars, but extends through the end of the vehicle lifecycle and beyond: All current new vehicles are at least 85% recyclable and 95% recoverable. ŠKODA AUTO attaches particular importance to the use of recycled, i.e. recovered materials, to replace increasingly scarce and expensive primary raw materials. Employer of the Decade In an international company like ŠKODA AUTO, what applies to production and products is also relevant in the social field. As one of the leading companies in the Czech Republic, ŠKODA AUTO has a special responsibility towards its employees, their families and people living in the communities where its plants are located. Issues like vocational and professional training, industrial safety and health protection, work-life balance and equal opportunities are the cornerstones of its responsibility towards employees. Low attrition rates and an above-average length of service of 12.5 years are proof of its success and confirm the attractiveness of ŠKODA AUTO as an employer. Resource-Saving In 2012, as in previous years, ŠKODA AUTO was again honoured as one of the most attractive employers in the Czech Republic. The Employer of the Decade award presented by the Czech Employers Association not only recognised the Company s qualities and attractiveness as an employer, but also the long-term stability of its human resources policy. ŠKODA AUTO as a good neighbour ŠKODA AUTO has traditionally focused its social responsibility on areas where the Company has operations. Its social and humanitarian projects are often collaborations with renowned foundations and charitable organisations. For example, ŠKODA AUTO has partnered for many years with the Healthy Clowns project, which arranges for clowns to visit and entertain seriously-ill children throughout the Czech Republic in hospitals and at home. Recycling However, the Company is not just active in the social field in the Czech Republic. Through its subsidiaries, ŠKODA AUTO is also involved in a large number of projects focused primarily on children s health and education, for example, in Germany and India. ŠKODA AUTO has been committed to road safety and ensuring safe school routes, in particular, for many years and works with a number of Czech municipalities in this field. The Company also extends this commitment beyond the borders of the Czech Republic through its Playful ŠKODA website, where children can learn everything they need to know about road safety in a fun way in Czech, Slovakian, English or Russian. Promoting culture at Company locations At ŠKODA AUTO, responsibility towards the community also includes contributing to cultural life in the areas where it is based. ŠKODA AUTO has a long tradition of cultural commitment in the Czech Republic, where the Company supports leading cultural institutions, such as the Czech Philharmonic and the National Theatre in Prague, the National Museum and the National Technical Museum. ŠKODA AUTO also sponsors a variety of acclaimed international events, such as jazz concerts in Germany, for instance. The Company s increasing internationalisation is also reflected in its growing cultural commitment in India, for example, where ŠKODA vehicles are produced at plants in Aurangabad and Pune. In addition to its active support for local school projects, ŠKODA AUTO established GreenFuture Emission-Reductions Environmental Protection A Škoda year in review

25 The ŠKODA 120-gram fleet: More than 50 models currently boast CO 2 emissions of less than 120g/km. the annual ŠKODA Prize for Indian Contemporary Art in 2010, with an endowment of one million rupees, to promote promising young local artists. Each year, thousands of visitors attend the exhibition showcasing the work of these young artists, for whom it is often their first opportunity for exposure and recognition. Citigo 1.0 l 50 kw MPI CNG One car one tree ŠKODA AUTO launched another, slightly more unusual initiative back in 2007: Since then, the Company has planted a tree for every ŠKODA vehicle sold in the Czech Republic, under the motto One car one tree. This means that more than 363,000 new trees have so far been planted including more than 58,000 in 2012 alone. This has a positive impact not only on the landscape, but also on the local microclimate and bird and game populations throughout the Czech Republic. 79 g CO 2 /km 4.4 m 3 natural gas / 100 km Octavia 1.6 l 81 kw TDI GreenLine Responsibility as a success factor At all levels, responsibility at ŠKODA AUTO is not confined to pronouncements, but focuses on putting it into practice. Sustainable development goes hand in hand with environmental responsibility. That is why, for Chairman of the Board of Management Prof. Dr. h.c. Vahland, there can be no alternative to sustainable development for ŠKODA AUTO, particularly in times of economic growth: The more successful we become, the greater our responsibility. 87 g CO 2 /km 3.3 l Diesel / 100 km * Superb 1.6 l 77 kw TDI GreenLine * This applies for the GreenLine version, which will be introduced onto the market in the course of the year g CO 2 /km 4.4 l Diesel / 100 km 2012 A Škoda year in review 25

26 A Škoda year in review

27 ŠKODA Rapid ŠKODA Rapid a new class of ŠKODA New goals call for a new approach and the new ŠKODA Rapid is just such an approach. With this car, ŠKODA is redefining the compact sedan offering generous space in an extremely compact package, a totally new ŠKODA design language and many detail solutions presented for the first time. Positioned between the ŠKODA Fabia and the new ŠKODA Octavia, the ŠKODA Rapid is consistent in design and Simply Clever at the same time. The new class of ŠKODA makes its world debut at the 2012 Paris Motor Show: Two ŠKODA Rapid cars drive onto the stage one metallic-blue, the other white and into the gleaming stage-lights amid a rain of camera flashes and thunderous applause. It is immediately apparent that this car will set a new benchmark: First, there is the fresh design language that will define all future ŠKODA models: modern, elegant and powerful with a clear tornado line and a new logo. And then there is the obvious commitment to redefining spaciousness in the compact class: impressive interior dimensions inside a compact body just 4.48 m long, 1.71 m wide and 1.46 m high. In the words of ŠKODA Chairman of the Board of Management Prof. Dr. Winfried Vahland: The ŠKODA Rapid is a compact sedan with the qualities of an estate car. Between ŠKODA Fabia and ŠKODA Octavia The ŠKODA Rapid is positioned between the ŠKODA Fabia and the ŠKODA Octavia visibly larger than the ŠKODA Fabia, but more compact than the ŠKODA Octavia. The new ŠKODA offers a huge amount of space for a compact-class vehicle, with legroom and headroom that are best-in-class. It also boasts the largest luggage compartment in its segment with a volume of 550 litres and a maximum load of up to 580 kg. This makes the ŠKODA Rapid the ideal car for modern families a goal which ŠKODA engineers and designers consistently pursued from the start. The ŠKODA Rapid can easily and comfortably accommodate up to five occupants, and with the largest tailgate in its class, there is still plenty of room for shopping bags and a stroller. It also guarantees typical ŠKODA value for money both from a purchase and maintenance perspective. Variants for local markets Reasonable pricing and everyday drivability are important considerations for a new car purchase in growth markets, too and that is exactly where the new ŠKODA Rapid comes in: The new model is designed not only for success in Europe, where deliveries began in October 2012, but also to appeal to new buyers worldwide. Customised variants specially adapted to local needs are offered in markets with the strongest growth potential, such as China, Russia and India. An Indian variant is already on the market, with a Chinese version to follow in 2013 and a Russian ŠKODA Rapid in The ŠKODA Rapid must quickly gain a foothold in these major markets. The signs look 2012 A Škoda year in review 27