The risk-takers: when Volkswagen bought into Skoda

The story of how Volkswagen bought into Skoda, and turned it round from being a joke (everything wrong with communist business) to becoming both profitable and prestigious.

The risk-takers: When Volkswagen bought into Skoda

Detlef Wittig

Skoda has long been the joke car, symbol of everything wrong with the communist business process. In just seven years Volkswagen has turned that perception on its head. It decided that Skoda was not only salvageable, but could be both profitable and prestigious. Here is the story of how it happened.

How big a risk was Volkswagen taking when in April 1991 it entered into a joint venture with Konsolidacni Banka (representing the Czech Republic) to acquire initially 30% and ultimately 70% of the Skoda Auto company? The agreement committed it...

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