Why Lada will never catch up with Czech Škoda.

The automotive world of Europe these days notes the 30th anniversary of the signing of a merger agreement between Volkswagen Group and the Czech automaker ŠKODA (April 16, 1991). Since then, the Czech brand has become a leader in a small European state in a major international player, which are sold in more than 100 countries around the world.

The domestic auto giant AvtoVAZ eventually went along the path of the Czech company. Our channel remembered why it all began and tried to answer the question

The example shown by the Czech automaker became undoubtedly an excellent example for the enterprises of the auto industry of the former socialist camp and the post-Soviet space. The main path for small world standards brands of automakers is integration in the world auto industry, the search for a partner and the further development of the brand. True, the movement on this path is associated with many difficulties, and in the end, not everyone ends so happily like Škoda. It is enough to remember how difficulties the Zaporizhia Automobile Plant, Warsaw FSO and Romanian Oltcit, who hurned to the partnership with the Korean Daewoo Motors, who later went bankrupt, putting them on the face of survival.

In terms of the latest history of Skoda, it all started with the velvet revolution in Czechoslovakia in 1989, which led to the fall of the communist regime. Already in June 1990, the search for a strategic partner for ŠKODA was officially initiated.

The German company declares respect for the desires of the Czech side to preserve the traditional brand ŠKODA, continue its development in the Czech Republic and save the release of Favorit and Forman models. Also Volkswagen offers an extensive investment plan. And 15 years ago, on April 16, 1991, the Agreement enters into force. The amount of the transaction was 620 million German marks and Škoda becomes the fourth brand of the concern along with VW, Audi and Seat.

The second applicant for ŠKODA French assets

After January 14, 2021, the Renaulution strategic program was presented. We had the opportunity to compare the development of two brands, two automakers who were under the patronage and in possession of the two world agencies.

Between Russian Lada and

At first

That is, two integrated players in the Franco-Japanese Alliance planned to produce cars as much as one ŠKODA produces today. Recall that in the past 2020, ŠKODA AUTO passed 1,004 800 new cars to its customers (see Infographic).

The second difference, which is immediately visible to the naked eye. Before the domestic brand LADA in the Renaulution strategy

Third

From here I.

And what’s the result?