Volkswagen is apparently spoiling for a fight with its fellow VW group brand Skoda over the latter’s much more economical pricing and growing range of award-winning models. speaking to news agency Reuters, VW sources have suggested that VW is taking steps to claw back ground.
Specifically, VW plans on getting Skoda to pay much more for its shared technology and relocation some of its production facilities from the Czech Republic to Germany, as the Dieselgate scandal continues to hit the German automobile huge in the pocket. thousands of jobs are currently being cut in VW management’s attempts to trim excess staff in its factories.
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The Reuters report indicates that from Volkswagen’s perspective, Skoda is benefitting from the VW Group’s newest technology with less expensive labour. The Czech marque has been part of the Volkswagen group because the fall of communism in 1991 and wholly owned by VW because 2000. Under VW’s guidance, Skoda has become a very successful mid-market automobile brand and surpassed luxury brand Audi’s operating profit margin last year.
The cost of labour in Skoda’s factories is considerably less expensive than in VW’s German plants. manufacturing wages average £9 per hour in the Czech Republic while in Germany, that average is £34.50 per hour. It also implies some automobiles in the Skoda range look considerably less expensive than similar Volkswagen models with the value proposition being enough to override the extra cache of the VW badge.