Looking at the automotive
sector, including the spare parts and components
sector, which is very important in the Czech Republic.
What is your view on the current situation in the
country?
If we look at the automotive sector in the Czech
Republic from the time when the union of Škoda
Auto with Volkswagen started it is one of the main
driving forces of the economy. The automotive industry
presents 6% of GDP, 18% of export and employs around
100 000 people which makes 3% of the work force
of the Czech Republic. If we speak about Volkswagen
in connection with Škoda, there have been 90
new companies founded. 90 suppliers, all in the
Czech Republic and the full assortment of products
is available. We are talking about daughter companies
and big concerns like Siemens, Bosch. There are
several Japanese companies founded here as suppliers
and they are steadily increasing their production.
We have a very competitive environment, a traditionally
skilled work force, and the logistical position
of the country in Europe is ideal. Taking all that
into consideration it is logical that Citroen, Toyota
and Pegeuot decided to build their new factory in
the Czech Republic. There is another project in
the region by Pegeuot itself and Huynday. Thanks
to the geographical location it is not important
anymore if Pegueot or Huynday is in the Czech Republic
or in Hungary, it can still use the supplier based
in the Czech Republic. As I see it, the importance
of the automotive industry in our country will increase.
Right now the turnover is around 260 billion Ck
for Škoda Auto and the supplier industry, which
I think, will increase to 2005 to something around
350 up to 400 billion Ck. When the new joint project
of Citroen, Toyota, Pegeuot starts, the production
should increase to around 10 percent of the GDP
and then the automotive industry should be comparable
to France and Germany.
But looking at the sales point of view how can
you maintain such a huge market share in this more
competitive market I would say?
I have to say that the market has been competitive
for many years. Nevertheless, we have more then
50 percent of the domestic market and have been
able to maintain this market share. We have two
things to look at. One thing is the quality offer
and assortment of the brand and the second thing
is that we maintain a good relation with the Czech
Republic and the Czech people are proud to have
a brand like Škoda and that is why they buy
our cars. If I should compare it with France where
the French automotive companies hold 38 to 40 percent
of the market share then I think it will be about
the same or the same situation here. The relation
between the French brand and the people is similar
to the relation between Skoda and the Czech people.
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But being part of such a huge group as Volkswagen
you have limits. How do you develop new products
and new brands?
This problem exists. You've probably read the automotive
news. It isn't our task to produce the same products
like the others in the group, we have to move in
other direction. But it doesn't mean that it will
be small cheap cars. A typical example is Škoda
Fabia combi. Nobody in the world will compare the
Polo to Fabia. But we want to develop into this
direction. This type of extended cars are typical
family cars for Western Europe, it could also be
Octavia. In the Czech Republic, Hungary, Poland
and Russia, the family car is the car that is big
enough to transport the family and there is space
for enough luggage to go and spend four weeks in
Croatia.
On the other hand being part of such a large
group it gives you advantages also, how can you
use them?
It is especially useful in the research and development.
We have a lot more possibilities, we have increased
the number of engine types for example, and many
other things that are essential in a modern car.
It wouldn't be possible to have it without being
part of a concern.
The development of the HR is tougher. We have our
own development department with more than 1000 people,
more then 55% are engineers and had experience with
technologies, not only in the Czech Republic but
also in Germany, Slovakia. We are developing the
people for the whole group, not only for us. We
are constantly developing everything that you can
see on a car.
Looking at the export markets, you are present
in more then 70 countries. Are you also targeting
the European Union?
Of course, we try to sell more and more to all countries.
Whether it´s the Europian Union or Russia
or the Ukraine we don't see any differences. What
is important is to find the customers. In the Czech
Republic we sell more then 70 thousand, 30 thousand
to Slovakia and of course we want to export more.
We also see a lot of space in Russia, Ukraine, and
the former Yugoslavia and on the other hand, we
are interested in the Middle East, China, India.
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