ŠKODA and Volkswagen celebrate one year of successful vehicle production in Nizhny Novgorod, Russia. It was one year ago, on 6 December 2012 that the go ahead was given at the GAZ Group partner plant to start the CKD production of the ŠKODA Yeti. Meanwhile, the ŠKODA Yeti and Octavia and Volkswagen Jetta were running off the production lines at the production facility 420 km east of Moscow.
Both ŠKODA and the VOLKSWAGEN Group Rus (VGR) cooperate in production with the Russian car manufacturer GAZ Group. Under the production network within the Volkswagen Group, production in Nizhny Novgorod is the Group’s second location in Russia. ŠKODA has taken over responsibility for the project. “The local production is of central importance for the growth of the Volkswagen Group and the ŠKODA brand in the Russian market,” says Michael Oeljeklaus, ŠKODA Board Member for Production and Logistics. “The launch in Nizhny Novgorod one year ago marked a milestone for ŠKODA’s development in Russia. We have a strong local partner on our side with GAZ. After one year, our balance is very encouraging.”
One year ago, the ŠKODA Yeti was the first model to run off the production lines from CKD form as part of the cooperation in Nizhny Novgorod. The CKD production launch of the new ŠKODA Octavia was in June 2013 and the Russian plant has been producing the Volkswagen Jetta since March. CKD (Completely Knocked Down) form means the full production of a vehicle, including the areas of body shop, paint shop and assembly. The agreement for contract manufacturing between VGR, GAZ and ŠKODA was concluded in mid-2011.
A total of around 300 million euros was invested by the partners into the local CKD production in Nizhny Novgorod, as well as with local suppliers for new facilities and comprehensive modernization measures. In addition, a new training centre for the local production team was built in early 2012. “Consistent quality management in production is the central prerequisite for globally uniform quality and thus the success of our vehicles. After one year, we can see that our investments have paid off,” says Michael Oeljeklaus.
Russia is an important cornerstone of the ŠKODA growth strategy. In the Czechs achieved a new record with 99,100 deliveries in the Russian market. So far in 2013 ŠKODA has delivered 78,900 vehicles to Russian customers, making Russia the third-largest market worldwide and the number two in Europe for ŠKODA. Sales of the ŠKODA Octavia accounted for around 52% of ŠKODA deliveries in the first eleven months of 2013.
The ŠKODA models Octavia and Yeti produced in Nizhny Novgorod play a central role in ŠKODA’s growth plans. Having sold 41,800 units, the ŠKODA Octavia is by far the Czech car manufacturer’s best-selling model in Russia. The third generation Octavia is setting ever more standards in the compact segment. The vehicle boasts unrivalled space, new design, high functionality, innovative safety and comfort systems, economical consumption, numerous Simply Clever ideas and typical ŠKODA value for money.
The ŠKODA Yeti has also been very well received by Russian customers. Between January and November 2013, ŠKODA sold 12,300 units in Russia. A few weeks ago, the brand unveiled the completely redesigned Yeti in Europe. The Russian market launch is due in early 2014. The popular compact SUV is now available for the first time in two versions: the elegant ŠKODA Yeti for the city and the adventurous ŠKODA Yeti Outdoor. Both versions feature new designs, fresh interiors and innovative technology features.
As part the 2018 growth strategy, ŠKODA plans to increase sales worldwide to at least 1.5 million units per year. The most comprehensive model campaign in the company’s 188-year history is at the heart of the growth strategy. This year alone the manufacturer has presented eight new or revised models. By the end of 2015, ŠKODA will have renewed its entire range of models and have grown in important segments.
The auto-maker also plans to make significant gains in Russia with this product campaign. In addition to the Nizhny Novgorod site, ŠKODA’s Russian production also takes place at the Volkswagen factory in Kaluga, where the ŠKODA Fabia is currently produced. As of spring 2014, the production of ŠKODA Rapid is also planned in Kaluga.