Skoda To Come Out With Cheap Skates?

Bertel Schmitt
by Bertel Schmitt

After decades of “up-positioning” and premium-branding, the sudden success of cheapskate models such as the Dacia Logan has not gone unnoticed at Europe’s largest automaker Volkswagen. Czech media is abuzz with reports of a new entry model, blatantly codenamed “A Entry,” which may be part of the Skoda line-up.

Reuters cites Czech media reports that the new model could be priced around $13,650, putting it somewhere between Skoda’s smaller (Polo-based) Fabia and the larger Octavia, which sits on a PQ35 (think Golf, Jetta) platform. Priced and positioned like that, it won’t be a Logan-killer. The Dacia goes for under $10,000 MSRP.

In the meantime, rumors that VW aims a lot lower won’t die in Wolfsburg.

There is ample chitchat that VW and Suzuki are working together on something small and cheap. Volkswagen is on record, for instance in Germany’s Rheinische Post, that “there are currently no plans for a car that counters the Nano.” Weasel words like “currently” and “no plans” send smoke signals that something is cooking.

After decades of conspicuous consumption, full frontal frugality is the new-fangled fashion in Europe. For years, Mediamarkt, a chain for low priced electronics, had the slogan “Geiz ist geil.” Directly translated, it would come out as “stinginess is horny.” A more fitting rendition would be “It’s cool to be cheap.” Ladies, who formerly flashed their Gucci and Prada possessions, now proudly shop H&M. There even is a chain of – fully legal – discount bordellos in Germany, called “Geizhaus.” (Their slogan is “Geiz macht geil.” The translation “stinginess makes horny” is absolutely appropriate, even if it lacks scientific proof.)

Coming back to cars, frugal vehicles are all the rage. Powered by the “Abwrackprämie,” sales of small&cheap rocketed up by nearly 100 percent in Germany last year. Small&cheap is also important to penetrate emerging markets. In the Volkswagen portfolio, launching a Geizauto under the Skoda brand would be a logical choice. Forget the “peoples’ car.” The Czech brand, bought by Volkswagen in 1991, has become the choice of “smart shoppers” in Europe and elsewhere. They know there is a Volkswagen underneath. But they usually find more value for less money in a Skoda. According to Reuters, “Skoda sold a record 684,226 cars last year, helped by car scrapping subsidies in western markets like Germany and expansion in China.”

(PS: Note that in the article above, I rejected the offerings of my synonym dictionary, and did not use “niggardly,” such as not to offend the hair-trigger sensitivities of some not so well advised readers. Julian Bond, chairman of the NAACP during the niggardly controversy, said: “You hate to think you have to censor your language to meet other people’s lack of understanding.” As much as I hate it, I will. Having said that, anyone who accuses – without due, and carefully considered cause – writers or commentators of TTAC of racism, or who incites an on-line racial riot, will be banned without warning. It happened last night. Let it not happen again.)

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

More by Bertel Schmitt

Comments
Join the conversation
2 of 9 comments
  • Stingray Stingray on Feb 22, 2010

    Is not only because a VW is beneath the "skin" of a Sköda car... it's because the thing is also good looking. I wouldn't mind to buy this http://upload.moldova.org/auto/Scoda/Skoda-Fabia_2007_01.jpg . The case would be even better if it has a TSI or 1.8T engine under the hood. Or TDi... And the Superb also looks good. And I've read that Sköda cars are better assembled and have less problems that VW own cars. The Logan is FUGLY. The Sandero looks ok.

  • PrincipalDan PrincipalDan on Feb 22, 2010

    I too wonder where the cheap cars thing will go. I'll accept it from the entry level brands of various manufactures but for the love of god GM, don't try to build a $10K Buick. I myself am torn between the idea of a Hyundai Accent/Kia Rio type car "brand new" for basic commuter transportation or a used car that is larger, older, and more luxurious for my commute.

  • MaintenanceCosts It's not a Benz or a Jag / it's a 5-0 with a rag /And I don't wanna brag / but I could never be stag
  • 3-On-The-Tree Son has a 2016 Mustang GT 5.0 and I have a 2009 C6 Corvette LS3 6spd. And on paper they are pretty close.
  • 3-On-The-Tree Same as the Land Cruiser, emissions. I have a 1985 FJ60 Land Cruiser and it’s a beast off-roading.
  • CanadaCraig I would like for this anniversary special to be a bare-bones Plain-Jane model offered in Dynasty Green and Vintage Burgundy.
  • ToolGuy Ford is good at drifting all right... 😉
Next