Skoda

History

2022: Loss of €700m due to withdrawal from Russia

The Czech automaker Skoda lost approximately €700 million due to the curtailment of business in the Russian market in the current geopolitical situation. This was announced on March 16, 2023 by the CEO of the company Klaus Zellmer.

It is said that at the end of 2022, Skoda sold approximately 18.3 thousand cars on the Russian market. For comparison: in 2021, shipments amounted to about 90.4 thousand cars. Thus, sales of the brand in the Russian Federation collapsed by about 80%. Before the termination of operations, Russia was the second largest export market for Skoda. It is noted that the brand is close to the sale of its Russian assets, and it is not planned to resume business in the country.

Skoda Kodiaq car

The Volkswagen Group analyzed various scenarios for maintaining operations in Russia. The preferred option is to sell the assets of Volkswagen Group Russia and thus the Kaluga plant to a third party. We are at the final stage of negotiations under this transaction and expect to close it in the near future. However, we cannot go into details until the agreement is agreed by all parties, "Zellmer said.

According to the published data, Skoda's net profit at the end of 2022 fell by 11.7% - to €489 million. This is due both to the departure from Russia and to other factors, in particular, to the increase in prices for components and materials, as well as to failures in supply channels and a shortage of electronic components. In total, in 2022, the company delivered about 731 thousand cars worldwide, including approximately 54 thousand electric vehicles. For comparison: a year earlier, 878 thousand vehicles were delivered to customers. In Eastern Europe, supplies collapsed on an annualized basis by 60.5% - from 126 thousand to 50 thousand cars. In Central Europe, the fall was 9.8% - from 164 thousand to 148 thousand units.^[1]

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