Internal conflict in the Volkswagen family

By:   Fedora Atjeh Fedora Atjeh   |   Oktober 05, 2017
Internal conflict in the Volkswagen family

The Škoda centenary, a subsidiary of the Volkswagen Group since 1991, is doing very well. Very good. The Czech manufacturer, which has factories in the Czech Republic, Slovakia, China and India, is becoming very profitable, and with Volkswagen trying to turn the page with the Dieselgate, it has intensified the rivalry of the brands within the German empire , according to sources close to Reuters.

Volkswagen is in a downturn, and its powerful syndicates see the success of Škoda as a threat: the Czech brand should pay more for the shared technology and transfer part of its production to Germany.

Škoda, one of the oldest manufacturers in the world

Volkswagen wants to reduce what it considers unfair advantages, which makes available the Czech manufacturer of German technology combined with cheaper labor. A Reuters source close to the high-profile German group claimed that, instead of fighting united to defeat Tesla, they are separating into a "useless" internal conflict.

And that Škoda has flourished under 26 years owned by the Volkswagen Group, with a successful mid-range car, winning business rivals and surpassing even the operating profit margin of Audi last year. This year it broke its world sales record with 6.7% more than in 2016, which translates into 1,127,000 vehicles, with Superb, Octavia, Rapid and Fabia leading.

Given the situation, the Czech Prime Minister, Bohuslav Sobotka, has stated that he would meet with the management of Škoda and the unions for clarification. The Czech government will try to prevent production from moving out of the country at the same time as it will try to make Volkswagen's investment plans go ahead.

Recall that Škoda is a century-old firm; the first vehicle that came out of its production center was in the Czech city of Mladá Boleslav in 1905. Fabia, Rapid and Octavia are manufactured in this plant, and about 20,000 people work there. Last month they celebrated the number 20 million vehicle that came out of their production line, and was a Karoq.

With this internal conflict in sight, it is paradoxical that the Czech workers can pay the claims of the German unions before a stage of restructuring of staff and cuts. Everything, to turn page with the Dieselgate.

The representatives of the Volkswagen workers now demand the transfer of a Škoda plant to their German underutilized plants, so as to compensate for the decrease in production of the Passat and the aging of the Golf, which could otherwise threaten more jobs .

In April, the Czech manufacturer presented its future plans, which include its first autonomous and fully electric concept: the Škoda Vision E. This marks the strategic future that will embrace the firm in the coming years within the field of electromovilidad; for 2019 is expected the arrival of a plug-in hybrid and five pure electric for 2025.

For its part, Volkswagen needs liquidity to cope with an electrical transition: one million electric by 2025 and 19 SUV by 2019.

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