Å kodaAuto ANNUAL REPORT 2006 - Skoda Auto

Production and Logistics
Human Resources
The principal production task for 2007 will
be to put into production all chassis
versions of the Škoda Fabia successor.
January 2007 will see the beginning of
series production of the Škoda Octavia
4x4 Scout in Vrchlabí. In accordance with
Company strategy, additional international
projects will be developed. In the first half
of 2007, a factory in Shanghai, China will
begin producing the Škoda Octavia
under license. In co-operation with the
Volkswagen Group, a new plant is being
built in Kaluga, Russia, and it will ship its
first Škoda vehicle in the autumn of 2007.
In India, the Škoda Fabia is to enter
production in 2007.
Sales and Marketing
In 2007, the Škoda Auto Group’s
demanding targets will be met through
support for and development of existing
markets, expansion of assembly capacity
in selected countries, and the opening of
new markets. After more than one half
million vehicles were sold in 2006, the
Škoda Auto Group’s policy of expansion
will be further developed, not only in
terms of new markets, but new models as
well. One of the pillars of the sales effort
will be the Škoda Fabia successor, which
will be unveiled to the public in March
2007 at the Geneva Motor Show. Another
vehicle to be launched in 2007 will be
a derivative of the popular Škoda
Roomster – the Škoda Roomster Scout.
In addition to all the advantages of the
Škoda Roomster, this vehicle will offer
increased robustness and uniqueness. The
emotional “trump card”, however, will be
the Škoda Octavia Scout unveiled in Paris
in September 2006, the launch of which is
planned for March 2007.
Human resources efforts in 2007 will focus
on continuing to recruit, develop, and
retain highly motivated employees. The
objective is to secure personnel for the
production programme that is set to
expand further during the year. Changes to
the payroll system are in preparation that
will place more weight on employee
performance and bring clear, fair
remuneration. In the autumn of 2007, the
Na Karmeli education center will open its
doors offering modern facilities for the
Škoda Auto University as well as for
employee training units.
Investment Strategy
Investments (i.e., capital expenditures) in
2007 will revolve around the development
and production of the Škoda Superb
successor vehicle and the
commencement of series production of
the Škoda Fabia’s successor. In addition,
CZK 254 million is to be invested in
upgrading and expanding the technology
and development centre in Česana,
including equipping it with high-tech
technologies. This investment will also
include upgrades of trial tracks and safetyincreasing
improvements to the testing
compound in Úhelnice, not far from
Mladá Boleslav. Significant funding
will also be brought to bear on a social
cause – the construction of the Na
Karmeli multi-function educational centre.
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