Return of the Skoda

By ALASTAIR SLOANE

Volkswagen-owned Skoda is almost certain to re-enter the New Zealand market early next year with a range of hatchbacks, sedans and stationwagons. The move is expected to be announced during the Rally of New Zealand in October - in which the Skoda team (at present fourth in the WRC manufacturers' championship) will compete.

The range will likely consist of Fabia and Octavia models, including four-wheel-drive stationwagons. The top-range Skoda, the curiously named Superb, won't be available.

VW importer European Motor Distributors confirmed it was talking with Skoda.

"At this stage we are still discussing the opportunity," said VW manager Dean Sheed. "Nothing has been approved or confirmed.

"We have a strong history and a bright future with the Volkswagen Group in Germany, and if they wish to enter the New Zealand market with Skoda, we are a logical partner for them."

But industry sources say the deal is almost complete and that the Skoda lineup will be priced under VW and aimed at mainstream models from Toyota, Ford and Holden, and niche Europeans.

The Fabia and Octavia range will come well equipped, with air-conditioning and anti-lock brakes as standard. Electronic aids such as traction and skid control will also be available.

The cars will come direct from the Skoda factory in the Czech Republic capital, Prague. The first example is rumoured to go on show at Big Boys' Toys in Auckland in November.

The small Fabia is built on the VW Polo platform and will be aimed at Japanese and European rivals such as the Toyota Echo, Peugeot 206, Renault Clio and Citroen C3. It will ride on 14-inch wheels and is likely to be priced around $23,000-$25,000.

It has been What Car? magazine's Supermini of the Year for the past three years.

The British monthly said: "Despite stronger opposition than ever, the Fabia is still the class act. Its combination of superb space and practicality, excellent dynamics and aggressive pricing proved too much to beat, again."

The Octavia is bigger than the VW Golf but smaller than the Passat. It sits on a stretched version of the Golf/Audi A3 platform and rides on 16-inch wheels. It will challenge Corolla, the upcoming Ford Focus and Holden Vectra, among others. Expect it to start in price around $36,000.

The four-wheel-drive Octavia wagon will also be aimed at the fleet and recreational market.

An industry observer said: "The four-by-four Octavia wagon will be the only vehicle sold new in New Zealand to rival the Subaru Legacy.

"It's not as big as the Legacy but it's going to be interesting to see how it sells, especially if it comes in significantly cheaper.

"It might also appeal to a wider audience: companies who are running a two-wheel-drive fleet but could get four-wheel-drive for similar money. I bet VW will go after the Ford Mondeo wagon with the Octavia."

Fabia is expected to be powered by the Polo's 1.4-litre engine, although other more powerful engines are available.

The Octavia will probably use the 1.8-litre engine from the Audi A4, or the 2-litre VW Beetle engine. Again, other engines are available. Diesel models are unlikely to be included in the mix.

Skoda is part of what VW calls its Contemporary division, along with VW passenger cars, Bentley and Bugatti. The Sport division comprises Lamborghini, Audi and Seat.

Skoda produced 460,000 vehicles in 2001 and is showing strong growth in Europe and Britain. Sales so far this year are up 16 per cent over 2001.

Skoda first entered the New Zealand market more than 40 years ago with a front-engined car. Rear-engined models followed before the company went back to front engines. It pulled out of New Zealand in the early 1990s.

The history of the Skoda car includes the role mechanic Vaclav Laurin and bookseller Vaclav Klement played when they formed a company to build Slavia bicycles just before Christmas 1895.

In 1899, Laurin & Klement moved into motorcycles and in 1905 built their first car, the Voiturette A. Between 1911 and 1914 they produced 600 models of the Voiturette A, which became a Czech classic.

World War I and the subsequent lean years afterwards disrupted production, and in 1925 Laurin & Klement merged with industrial heavyweight Skoda, which had built the Hispano Suiza, Czechoslovakia's most luxurious car.

In the early 1930s the company built the Skoda 420, a car considered ahead of its time.

Skoda became part of the German World War 11 effort - building tanks and trucks - before it was nationalised in 1946. It started building the 420 again and introduced a new model, the Tudor.

During the 1950s and 60s it produced the Spartak and Estelle, and entered its first championship rally in 1969.

The company began to lose competitiveness through the 1970s and 80s as mainstream carmakers employed new technologies. But it clawed back some of the ground it had lost with the Favorit in 1988.

In 1989, with the Soviet grip loosening and a free-market environment approaching, Skoda looked for a foreign partner. In December 1990 the Czech Government chose the Volkswagen group and, in April 1991, SkodaAuto began trading as the fourth branch of the VW, Audi and Seat group.