Logo: Skoda

The Brand from Central Europe

Skoda Octavia GreenLine saloon (1.6 TDI) – fuel consumption in l/100 km: urban 3.9 / extra-urban 3.2 / combined 3.5; CO2 emissions in g/km: 90 (combined); CO2 efficiency class: A+

The ŠKODA OCTAVIA combines the typical strengths of the brand and contributes considerably to the Czech car manufacturer’s growth with more than 5 million cars of this model sold to date. Following comprehensive revisions, the third generation of the model that was originally introduced in 1996 once again presents itself in top shape, both visually and in terms of technology.

With over 120 years of vehicle manufacturing experience, ŠKODA AUTO is the largest industrial company in the Czech Republic and the third oldest car manufacturer in the world. In 1991, ŠKODA AUTO was the fourth brand to be incorporated into the Volkswagen Group and was positioned as the Group’s entry-level brand. Since then the production has increased more than six-fold. Today, ŠKODA AUTO operates three production plants in the Czech Republic and one in India, with ŠKODA vehicles also produced in China, Russia, the Slovak Republic, the Ukraine and Kazakhstan.

ŠKODA AUTO currently generates about 8% of the Czech Republic’s total exports, supplying vehicles to over 100 countries on five continents. Its product portfolio comprises models in all categories. The seven model series meet virtually all customer needs. Each model has its own unique positioning and interprets the ŠKODA brand’s pledge differently for each of its target groups and market segments: from the ŠKODA CITIGO city car and the small ŠKODA FABIA to the compact ŠKODA RAPID and the ŠKODA OCTAVIA in the upper ranges of the compact class, the ŠKODA YETI off-roader through to the ŠKODA SUPERB at the high end of the model range and the brand’s new large SUV, the ŠKODA KODIAQ, presented to the public in September 2016.

2016 marked the fifth year of the ŠKODA AUTO growth strategy with 1,126,477 cars sold worldwide. ŠKODA’s European market share remained above 4%, while China maintained its position as the brand’s strongest market with 317,088 cars sold - an increase of 12.6% over 2015. 

In recent years, ŠKODA AUTO was regularly featured at the top of the “Czech 100 Best” rankings in the “Most Important Company” and “Most Admired Company” categories. ŠKODA AUTO employs more than 28,600 people, and is the only company in the Czech Republic to operate its own vocational school and university. The company has won the “Employer of the Year” award on numerous occasions. 

Sustainability is key to the success of ŠKODA AUTO in facing present and future challenges. For ŠKODA AUTO sustainability involves the creation and sharing of values between the company and all stakeholders, internal and external. The company creates shared values through its CSR activities and GreenFuture environmental strategy, but also by establishing and adhering to principles of ethical and transparent conduct. 

2016 Highlights

“Generous Donations by ŠKODA Employees – 1,77 Million Czech Koruna for Charitable Projects”

Millions Donated for a Good Cause

In 2016, ŠKODA employees raised more than two million Czech koruna for NGO projects that were selected by the employees themselves. The company’s own donation doubled this figure, bringing it to four million koruna. In line with ŠKODA’s CSR priorities, most of the money went into the support of charitable projects for children, education, barrier-free access for the disabled, and road safety. A certain amount of money was donated to a children’s home in Aurangabad, India, as part of ŠKODA AUTO’s international help initiative.

Teribear Charity Runs

In 2016, ŠKODA sponsored the Tereza Maxová Children’s Foundation’s “Teribear charity runs". Every km in the 10-day “Teribear moves Prague” event and the one-day “Teribear moves Mladá Boleslav” event raised money for disadvantaged children. Runners at the Prague event ran day and night, with event partners donating a certain amount of Czech koruna per km for projects to support children in need. A total of 9456 people took part in Prague, covering a distance of 159.348,75 km overall and raising more than 8 million koruna. The Mladá Boleslav run on behalf of Nymburk Children’s Home involved a large number of ŠKODA employees, as well as members of the general public. During the one-day event, more than 1687 people covered a distance of 14.426,4 km, raising almost 300.000 koruna.

Precision and efficiency

At the main plant in Mladá Boleslav, preparations for the new state-of-the art PXL II servo press line got underway in 2015 and continued throughout 2016 with investments amounting to EUR 86.4 million. The new line is the most modern of its kind in Central Europe. For the first time now, it is possible for ŠKODA AUTO to press large aluminum car body parts for weight-reduced, more energy-efficient vehicles. The new press goes into full operation in 2017. A total of 140 new jobs will be created in connection with this investment.

Other Projects

Half a Million Trees for the Czech Republic

As part of ŠKODA’s long-term “For each car sold in the Czech Republic, one tree planted” project, the company planted more than 640,000 trees in some 50 locations between 2007 and the end of 2016. Trees are planted for the benefit of towns and communities throughout the Czech Republic. A key focus lies on the regions in which ŠKODA has production facilities. From the start, employees at ŠKODA production sites have been actively involved in implementing the campaign. They assist in the search for suitable locations, as well as the actual planting. From the outset it was a key objective of the initiative to strengthen the bonds between employees and the areas in which they live and work through active involvement. 

ŠKODA Academy

The ŠKODA Academy comprises three main parts – an adult training, a vocational school and employee potential assessment. The adult training program is designed to foster the personal development of ŠKODA AUTO employees, as well as to broaden and improve their technical and interdisciplinary skills. 31,948 participants took part in off-the-job adult training courses in 2016, and 61,291 participated in eLearning courses. ŠKODA AUTO’s vocational students regularly rank among the best in national and international competitions. Students are invited to enhance their skills in the so-called Apprentice Car project in which they are asked to build their own prototype car. This project, guided by professional ŠKODA designers, was launched in 2013. In 2016, the teamwork of the students resulted in a car named ATERO, based on a ŠKODA RAPID and equipped with a variety of amazing special features. The vocational school offered 14 courses in IT mechatronics, logistics, auto mechanics, electrical engineering and tooling, including a special course for disabled apprentices which were attended by 911 full-time students.

Z.E.B.R.A. idea management

ŠKODA AUTO has implemented the so-called Z.E.B.R.A idea management, a motivational programme dedicated to supporting employee activities aimed at improvements and innovative cost-saving measures. Since the programme was launched in 2010, the number of proposals submitted has increased from 11,620 to some 26,000 in 2016, allowing savings of CZK 302.4 million. Z.E.B.R.A. thus has become a powerful tool under the direction of ŠKODA’s “Suggestions Centre”. 

Health care – focus on prevention

The ŠKODA Polyclinic, located at the main plant in Mladá Boleslav, provides outpatient medical care for both employees and the general public. The range of care provided includes general medicine, cardiology, dentistry, dermatology, ENT, gynecology, internal medicine, neurology, ophthalmology, orthopedics, pulmonology, sonography, surgery, urology and X-ray diagnostics.

ŠKODA employees can participate in the prevention programs free of charge. These include individual and group training sessions aimed at preventing health problems resulting from workplace or lifestyle factors. In the reporting year, a number of ergonomic interventions were implemented. The company also continued to carry out ergonomic risk assessments using the EAWS (Ergonomic Assessment Worksheet) in order to analyze and evaluate risks caused by physical stress in the manufacturing process. Using the EAWS, a comprehensive ergonomic assessment of work tasks can be performed that takes account of both the intensity and duration of any form of stress. A new project for the psychological assessment of workplaces was introduced, providing an important perspective for improved workplace monitoring.

Stakeholder Dialog

 

As a brand, ŠKODA always aims to maintain close contact with its main stakeholders such as employees, communities, customers, governmental and other administrational bodies, suppliers, academics, NGOs, professional organizations. ŠKODA identifies relevant needs and requirements through personal discussions, meetings, and participation in public forums, seminars and university lectures. ŠKODA has so far used information from the Volkswagen Group’s stakeholder survey and materiality matrix. In 2016, ŠKODA AUTO launched a process of stakeholder assessment in cooperation with PriceWaterhouseCoopers. After reaching major milestones by the end of 2016, the process will be continued in 2017.

Awards

 

Czech 100 Best 2016

ŠKODA AUTO has been voted the country’s best company by “Czech 100 Best” for the 16th consecutive year and has now won the award more times than any other company. Results are based on the votes of nearly 20,000 selected representatives from economic and political life. The award is presented by the pan-European company for culture, education and scientific cooperation, COMENIUS.

ZPŠ

In 2016, Škoda Health Insurance (ZPŠ) topped the “ZP health index” compiled by the “Platform of health insurance policyholders of the Czech Republic”. According to the index, ZPŠ is in the best financial shape, having improved its result since last year by finishing among the “healthiest” insurance companies in the Czech Republic. It was clearly the quality management system and fully professional work of all our employees that contributed to this valuable and independent acknowledgement. Škoda Health Insurance has been using the system for more than 10 years, earning it a quality certificate in compliance with ISO 9001 standard which ZPŠ also defended during the audit in September 2016.