Škoda Auto cuts prices

The global financial crisis has not spared the Czech automobile industry and the majority of car makers have already announced price-cuts. Now the Czech Republic’s largest car manufacturer, Škoda Auto has been forced to do the same. The company announced a series of price reductions on Wednesday, the first since 1991, when Škoda Auto became part of the Volkswagen group. So what sort of discounts is Skoda offering? Jaroslav Černý is the company’s spokesman:

“According to the development on the market Škoda decided to reduce the prices of all Škoda models, starting with the Fabia and ending with the Škoda Superb. If you look at the basic models, the reduction is about 20,000 crowns.”

Why have you decided to adopt this measure?

“It was due to the prices on the market and due to the harmonization of the prices in Europe.”

So basically, you are trying to balance out prices with those in Europe?

“Exactly, we are trying to come closer.”

Does it mean that Czechs tend to buy cars abroad?

“Not very often. People who live close to the boarder sometimes do, but their numbers are small.”

Was your decision connected with the weakening of the Czech crown?

“That was also a reason. Other car importers can do something about the prices because they are not that affected by the strong Czech crown. But Škoda Auto, as the Czech Republic’s biggest producer and exporter, is really fighting against the strong Czech crown. That’s why we would like to adopt the Euro as soon as possible.”

Were the price reductions the only way the financial crisis affected your company?

“We have decided to reduce production. Next week Škoda Auto is not going to produce any cars in any of its plants. The crisis affects the buyers and they are not buying the cars, so therefore we had to reduce the production.”