Skoda Will Introduce a New Model

Skoda, Volkswagen’s low-cost brand, is planing to introduce a new model to its vehicle line-up, as Reuters reports, surfacing information from the carmaker’s union weekly newsletter.

Although the information was clearly stated in the newsletter, no specific details about the pricing and production schedule have been released.

According to Skoda union chief Jaroslav Povsik, a test model of the new car has been presented. The model, bearing the internal code A Entry, will be aimed for the low budget segment of the market.

According to Daily Mlada Fronta Dnes, the upcoming model may have a starting price of approximately $13,600, thus entering Skoda’s range at a middle point, somewhere between the Fabia hatchback and the Octavia saloon. The newspaper added that the car will target customers with a large family who do not intend to spend very much on the acquisition of a new vehicle.

Last year, Skoda’s sales reached record values (a total of 684,226 cars), driven by cash for clunkers programs implemented in western markets - the company also took advantage of the booming Chinese market.

However, Skoda announced that it will slow the pace of its Octavia sedan production due to a slowdown in recent sales. The latter was caused by the fact that most scrappage schemes came to an end - this was also the case in Skoda's biggest market, Germany. The Octavia, Skoda’s best-seller in 2009, will be produced at a rate of 441 units per day, down from the previous 574 units a day.