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It is no secret that the Czech Republic's biggest car maker Skoda Auto has been in the past - a laughing stock in the automotive world. But things are finally turning around for the automaker and right now it has become a profit producing force for its owner Volkswagen.

The Czech Republic's biggest car maker is also planning to open up new markets in China, India, and Russia. Skoda Auto was bought by Volkswagen in the year 1991 and become one of the forces behind the latter's global force. And as part of Europe's largest automaker, Skoda Auto makes use of quality Volkswagen auto parts for its production like the popular Volkswagen spark plug wires.

Skoda Auto was able to record net profits for the last week of 2006 totaling to 11.06 billion koruna or 392 million euros (515 million dollars). It obtained a 40% increase as compared to its earnings in the previous year.

Skoda Auto's production also increased by 12.6 percent or 556,347 units with successful deliveries of up 11.7 percent resulting to an overall sales increase of 8.7 percent to 203.7 billion koruna. For this year, Europe's largest automaker Volkswagen owner of Skoda is expecting for it to produce more than 600,000 cars.

According to Marc-Rene Tonn an analyst from German bank MM Warburg and Co., "Skoda is an extremely profitable part of the Volkswagen Group." He also stressed that about one in every 10 Volkswagen Group cars are produced in the Czech Republic especially those sold in the year 2005. This was seconded by Stephen Pope, a London-based analyst with financial services group Cantor Fitzgerald Europe, "Volkswagen will rely heavily on Audi and Skoda during this current period." Since he said that the Europe's largest automaker is currently struggling with an ageing range of models and it needs new launches to revive it. "The whole new image of Skoda has changed. It is no longer taken as a joke and is now seen as a pure derivative of Volkswagen, but much more reasonably priced."

Pope also added that this simply shows the remarkable development that Skoda Auto has achieved under the management of Volkswagen for the past 15 years as part of the VW Group. Praises also to Volkswagen for being steadfast in its decision not to scrap the Skoda brand in spite of the not so good image that the brand has in Western Europe (DaimlerChrysler could used some advice from Volkswagen).

The turning of the Skoda into one of Volkswagen's flagship producer of reasonably priced reliable cars just goes to show the effective management style that Europe's largest automaker have. And today, Volkswagen is leading Skoda to become its low-cost spearhead into the booming economies of China, India, and Russia without damaging along the way it attempts to target a more prestige market.

Pope also said that "Skoda will be designated as the entry level car with the premium part of the market left for Volkswagen."

The boss of Skoda Detlef Wittig has announced last week the company's goal of producing low-cost car for the Asian market, mentioning also that the company plans of opening up markets in India, Russia, and China. The low-cost Fabia and the top-of-the-range Superb are scheduled to be produced for China in partnership with Shanghai Volkswagen. Likewise, launches production of the mid-range Octavia model are set for China this year.

The Czech automaker has already car assembly and production projects in Ukraine, Russia, Kazakhstan, Bosnia, and India. Current models lined up for production includes the mid-range Roomster which will complete the current four model range and the three-door sporty vehicle called the Skoda Joyster which is designed for young buyers.

For more about your Volkswagen parts needs like Volkswagen spark plug wires [http://www.dubautoparts.com/volkswagen-spark-plug-wires.html], visit your trusted online source.

Growing up with three brothers, Natalie Anderson became exposed early to the world of automobiles. This 29-year-old account manager now dreams of having her very own top-of-the-line vintage car.

Gm of Canada Posts Best Saturn Sales in May

For May 2007, General Motors of Canada dealers delivered a total of 45,359 units, an increased of 2.2 percent over the same month last year.

“GM is pleased with our continued growth in May, driven primarily by strong retail sales, up 10.6 percent overall. Our Chevrolet and Pontiac divisions remain strong with growth in small cars and small utilities and the continued success of our new Oshawa-built Chevrolet Silverado and GMC Sierra pickups,” said Marc Comeau, GM of Canada’s vice-president of sales, service, and marketing.

Comeau added “But the real big news is Saturn - posting its best sales month in history. The momentum is building at Saturn retailers on the heels of introducing exciting new vehicles like the Saturn Outlook, award winning Saturn Aura sedan and Saturn Aura Green Line Hybrid.”

The Outlook, a premium mid-size crossover SUV which debuted at the New York International Auto Show (NAIAS), is based on the new GM Lambda platform. The vehicle features lowest sticker price among GM's Lambda crossover SUVs.

The Aura, a midsize car, debuted at the 2006 New York Auto Show in April, is equipped with a 252 horsepower 3.6 L V6, enhanced Saturn spark plug wire, and a new 6T70 six-speed automatic transmission. The Green Line versions, built at Kansas City, Kansas, Fairfax Assembly plant, flaunt the 2.4L Ecotec engine mated to an electric motor/generator and the 4T45-E four-speed automatic transmission. The powertrain is rated at 164 horsepower and 159 lbf·ft of torque. The Green Line has an EPA estimated fuel economy of 28 mpg city and 35 mpg highway, which the automaker claims is up to a 30 percent improvement over the Aura XE.

Overall sales of the Detroit-based automaker rose 10.6 percent for the month and 5.1 percent calendar year-to-date. Highlights include strong performance from small cars like the Chevrolet Aveo and the Pontiac Wave and the Pontiac Vibe, up 9.4 percent, 14.9 percent and 44.9 percent, respectively. Small utilities remain strong, with the Chevrolet Equinox, Pontiac Torrent, Saturn Vue and the Chevrolet HHR up a combined 9.7 percent. The Saab and Cadillac divisions posted 59.5 percent and 7.8 percent gains, respectively.

The award winning Oshawa-built Chevrolet Silverado and GMC Sierra pickups continue to perform well. Combined, the product line reported 23 percent sales increase in May. Additionally, the GMC Acadia, Saturn Outlook and the Buick Enclave crossovers have had a solid start, leading GM to a 42.6 percent overall increase in mid-size utilities.

During the GM annual meeting, CEO Rick Wagoner said, “GM's positive retail sales and revenue growth trends reflect our focus on product excellence, which remains the most important element of our business strategy. Over the last 18 months, we've launched a number of great new cars and trucks such as our all-new midsize crossover GMC Acadia and Buick Enclave, and the Saturn Aura and Chevy Silverado, which were voted car and truck of the year, respectively, at the 2007 North American International Auto Show.”

“And going forward, we'll continue this steady cadence of great products... for example, this fall, we'll introduce two very important cars which have scored tremendously well in our consumer research... the next-generation Chevrolet Malibu family sedan and the Cadillac CTS luxury sedan,” he added. “Beyond this, last November at the Los Angeles Auto Show, we announced our intention to produce a plug-in version of the Saturn VUE Green Line hybrid, which has the potential to achieve double the fuel efficiency of any SUV on the road today.”

About the Author

Anthony Fontanelle is a 35-year-old automotive buff who grew up in the Windy City. He does freelance work for an automotive magazine when he is not busy customizing cars in his shop.

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1991 Oldsmobile 98 Touring Sedan from North America - Comments
When I first acquired the car, it hadn't been highway driven over 55mph in 3 years at least, so I kinda expected trouble. The tranny went out, at 70,000. After I had that repaired, I blew out the coolant pump at 75,000 miles.

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