Skoda will release a compact car
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Skoda will release a compact car

Skoda will release a compact car

Skoda plans to produce 1.5 million vehicles by 2018 - up from 850,000 expected this year.

The first will be the Volkswagen Up, followed by the Skoda version, and then the version from the Spanish division of Seat. But while they all share a common platform and powertrain, the body style, interior features and even the target audience will be slightly different, says Skoda sales board member Jurgen Stackmann.

“We call it our new subcompact car – it doesn't have a name yet – which will be under the wing of the Fabia,” he says. “It won't be a Volkswagen. This is Skoda, so the emphasis is on practicality, strength, reliability and functionality.”

However, the NSC, which will be powered by a 1.2-liter Volkswagen engine that is expected to be a three-cylinder, will not be sold outside of Europe. “It is designed for dense cities and is designed to be compact on the outside and spacious on the inside.

“This is a clear sign that we are expanding our product portfolio. But we are a relatively small company, so we must take deliberate steps to keep our philosophy intact. We are the entry portal for the Volkswagen Group and a high quality alternative to Asian products.”

The NSC, which is expected to be shown at the Frankfurt Motor Show in September, is the first of four new models planned over the next three years. Mr. Stackmann says the replacement of the Octavia is due in 2013, and he shares some design themes with the Vision D concept car unveiled at this year's Geneva Motor Show.

“This car is not as relevant as some people think,” he says. “But wait two years – until 2013 – and you will see some elements of it in the new product,” he says, referring to the next Octavia, which is now codenamed A7. The next Octavia is expected to grow slightly in size and likely create a gap in the vehicle range for vehicles roughly the same size as the Mazda3.

“This is clearly a growing segment in other (non-core) markets such as China, the Middle East and so on,” he says. “It will work everywhere except Western Europe,” he says, believing that there is a trend towards smaller cars and that the current market is highly competitive.

However, he does not exclude this, which means that it is promising for Australia. The other vehicle may be a larger SUV built on the all-wheel-drive Superb platform.

Mr. Stackmann says the SUV market is still strong, but hinted that Skoda might not offer the usual wagon, but something completely different. "It may have all the space and high seating position of an SUV, but it won't be like any other SUV."

When asked if Skoda is considering a commercial vehicle based on the Volkswagen Amarok, he replied that the production of such vehicles is not within the company's mandate. “It doesn't make any sense. It would be a huge step beyond who we are and where we plan to go. There are too many more attractive options."

Skoda plans to produce 1.5 million vehicles by 2018 - up from 850,000 expected this year and 500,000 annual production just two years ago. “That's an impressive figure,” Mr. Stackmann says of the proposed production plan. “If everything goes according to plan, it is achievable. Kia did it - I don't see why we can't."

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