Škoda Auto seeks right track with Yeti launch

With the bottom falling out of Europe's car market, the Czech Republic's biggest producer, Škoda Auto, says it will bring forward the launch of its sport utility vehicle, the Yeti, to early March with the first cars on the market in the Summer. Škoda has high hopes that the new model will help cushion the impact of the crisis. But with sales of such all terrain cars down worldwide and a mid-range price tag expected on the car, will the Yeti help save Škoda from the worst? I discussed just that with Automotive News' Central European correspondent, Lyle Frink.

“I see the Yeti as a compliment for Škoda's existing Scout line-up. And it will come as two and four-wheel drives, which means it is more financially accessible than one might think.”

Do you think it could be a solution to the current car crisis for Škoda?

“Actually, there is no one model solution for the car crisis. The issue is that people have suddenly stopped buying cars due to financial uncertainty and other issues. The important thing for Škoda is to have interesting product out there when demand picks up and I think they are positioned to do that. Also, one issue is with the scrappage law in Germany, and Germany is Škoda's biggest market, that they might need to get the Yeti out there so that people getting their new car, after junking their old car, can get a Yeti.”

But the Yeti is an all terrain vehicle, I mean do you think it is the right car to be launching now?

“I think it is much better to launch an all terrain car in the Winter rather than the Summer. I do not know, the idea of calling the car the Yeti and launching it in the late Summer does not seem quite right to me. When I hear the word Yeti, I think snow. So I think it is right.”

And on the number of cars Škoda could sell of the new Yeti, do you have an idea of how many cars they could sell?

“Off the top of my mind, I would say between 30,000 and 50,000. I expect it to be a sort of niche vehicle and not a main seller because it is to be built at the Kvasiny plant and so capacity is actually limited. But it is important for Škoda. Škoda is also using its Vrchlabí plant to make parts for the Yeti.”

The initial figures were hopes of up to 55,000 of the Yeti model being sold?

“Yes, but you are going to find people…Nobody wants to predict how many models of car will sell now. It is a strange market.”

Have you any idea of the price range of this new car?

I would take a look at the Škoda Scout and think of the Yeti as being a bit above or below the Scout.

Who will be the main competitor for the new car?

“I think it is people who want a SUV [Sports Utility Vehicle] who did not like the earlier prices and did not like the really big SUVs. When you drive a big SUV on the road you are expected to be a bit of an arrogant jerk. I have watched people’s reactions when I was driving one. If I was polite they were very surprised. So I think they are going to attract, or want to attract, a suburban person who wants four-wheel drive capability without the ego issues of a large SUV.”

How do you see overall sales of Škoda this year. How bad do you think the overall market could be?

“I expect the overall market to be down 25 percent.”

That is for Škoda or the overall European market?

“That is overall for Europe. Spain, of course, will be worse. But it is a big question mark. Nobody knows above two months what they will be making.”