From Skoda: Volkswagen's Hot Growth Engine:
Lower-priced and higher-quality than similar models built by Volkswagen, Skoda's automobiles are driving a global growth jag, with sales up 13.2% in the first half of 2006. "Skoda has become the true Volkswagen (people's car)"
...and is considering a lower-priced model that could go head-to-head with Renault's (RENA) no-frills Logan
Analysts say over time VW's management may consider letting Skoda become the larger-volume brand, while making Volkswagen's cars more upmarket to defend its margins...
Skoda has now become synonymous with high quality. In the 2007 European consumer satisfaction and quality studies by market researcher J.D. Power & Associates (which, like BusinessWeek, is a unit of The McGraw-Hill Companies (MHP)), Skoda ranks among the top 10 in France and Germany; and in Britain it ranked No. 2 (tied with Honda), scoring just a fraction below Lexus.
... "Skoda already outperforms Toyota, relatively," says Wittig. "Our return on capital is 19% to 20%—Toyota's is 15% to 16%."