Global viewpoints: Europe embraces the AT-factor
Skoda uses VW Group technology for economy cars
Skoda Auto, based in the Czech Republic, has climbed from its humble technological and quality levels of a decade ago to become an increasingly important element of the technology- and quality-led Volkswagen Group. Just how high that climb has reached was demonstrated at the Geneva Motor Show in February when Skoda revealed the Montreux, a near-production concept based on a stretched—by about 100 mm (3.9 in)—version of the VW Passat. The production version is expected to be at the Frankfurt Motor Show in September and will take Skoda into executive car territory, harking back to the company's roots as a luxury carmaker.
 Wilfried Bockelmann, Skoda's Director of Technology, Research, and Development, said the company will find evolution, not revolution, in the advance of technology. |
Wilfried Bockelmann, Skoda's Director of Technology, Research, and Development, has played a key part in the creation and production of the company's current products (including the Fabia and Octavia), which have received international critical acclaim. In the process, Bockelmann has gained wide, varied, and unusual experience helping transform an east European company that for years had languished in the doldrums of development into an entity able to compete very successfully in its sector with the best that Western Europe produces.
Despite the Montreux, Bockelmann regards Skoda as essentially a value-for-money company. But although very much aware of the trend toward increasingly complex technology, he does not see that as a problem for Skoda products. "We will find evolution, not revolution, in the advance of technology," he said. "The biggest evolution of the past 20 years was the replacement of many highly complex mechanical systems by those that now combine simple mechanical functions with highly complex electronic systems. For example, carburetors had many mechanical parts, but now fuel injection uses a mechanical injection nozzle while every other aspect of the system uses electronics. So moving parts become fewer, and complication is now very much on the electronic side. Break down in the desert today and, unless you have some very special tools, you'll walk home, whereas once you could have solved the problem with a screwdriver, pliers, and a hammer."
Some of this technological complexity will interface with the driver in the form of navigation and other systems, according to Bockelmann. "We need to simplify application of these systems," he said, "and I believe that voice operation must be the future." But it will be some time before that is used across the Skoda range.
Being a technology leader is not important for the company, in Bockelmann's view. What is needed is the patience to allow economies of scale to bring down the cost of such high-tech systems. "As part of the Volkswagen Group, we see Audi as the technology leader," said Bockelmann. "If you want to be a very successful premium manufacturer, you have to have new systems, but as a value-for-money company we don't have to be in the first row of such technologies—although we do need state-of-the-art systems and equipment. What we can do when we need an established system is call on the VW 'warehouse' and take our technology from there. We already have ESP (Electronic Stability Program) on the Fabia, which is unusual for that class of car."
 Assembly of the Skoda Octavia. |
Skoda does have design and engineering tools similar to those of other members of the VW Group. It is an area in which Bockelmann believes Skoda needs to be "at the forefront." The company carries out its own crash research programs, strongly supported by computer simulation. Investment in the equipment needed is high, and Skoda has other economic pressures to face at present. The Czech Crown has a high value against European Union currencies—"about 10% higher than we expected, so we do face cost pressures," Bockelmann said.
He considers Skoda an "international" rather than a global company, selling into 73 countries (but with no plans to sell products in the U.S.). The Fabia is responsible for the majority of Skoda's exports. It is aggressively priced and carries the cachet of the VW Group, offers VW engines (gasoline and diesel), and has distinctive styling.
While Skoda works closely with companies inside the VW Group, it has also formed alliances with major suppliers. At its Octavia plant, module suppliers work on the shop floor, renting space from Skoda. Modularity has been an important element of Octavia production, although Bockelmann said it is diminishing. "Modularity can be inflexible," he explained. "You need a long-term contract with a supplier to come to your plant and work there for a long time. This makes us less flexible if we wish to change to another supplier for reasons of price, equipment, or because they may have a better solution. Usually we design modules and just outsource the manufacture."
Despite the fact that a Skoda owner in Austria recently achieved international publicity for running his car on salad oil ("It worked well with good emissions," said Bockelmann. "But this sort of thing does invalidate the warranty!"), Skoda does not have an alternative-fuel program; that is a VW Group responsibility with individual companies paying to take the results of the research.
As well as ESP plus the usual range of airbags, ABS, and other systems, Bockelmann sees Skoda's future safety philosophy as being likely to extend to a range of new systems including specific pedestrian protection designs. These may make extensive use of foams at the front of cars. Frontal styling may change, he said, and there could be a trend toward different brands looking more alike.
 The Skoda Montreux, shown at the Geneva Motor Show, is a stretched version of the VW Passat. |
Audi may be renowned as a company with special knowledge of aluminum (including the bodyshell of the A8 and A2), but Skoda has been using it extensively for powertrain applications since the 1960s, when it built rear-engined models. "We have maintained that experience and knowledge," Bockelmann said, "and in our new engine plant, we build only aluminum gearboxes and cylinder blocks. Although the potential cost of aluminum for a car's bodyshell has come down a lot, I do not see it being used in the near future for cars in Skoda's price sector. However, recycling of aluminum is a relatively cheap process, so if more of it comes on the market, maybe the price will come down further, which would change the picture."
Cost is always important for the company, which is why its plants are labor-intensive. Automation is used mainly for physically difficult jobs and for critical geometric tasks. "Our quality compares well with other companies in the VW Group," said Bockelmann. "We have twice been the Group's 'Plant of the Quarter.'" Skoda is part of the Group's e-commerce platform, and it has been possible for some time for customers to buy a Skoda via the Internet.
Bockelmann expects government automotive regulations to increase in Europe. "What is done in the U.S. in areas like emissions will eventually come to Europe," he said. "However, we sell into some countries that do not have refineries able to produce fuel of sufficient quality to reach required EU (European Union) levels. I also feel that the national influence on regulations is growing, with some countries individually carrying out emissions work and wanting to influence the EU."
For many years, Skoda has fielded an international rally car team. Bockelmann said the company benefits from such involvement, "but less than we once did." The cars are so specialized that the direct value of technology crossover for mass production is not large, he said, "but we do learn a lot about training—how to deal with problems very quickly when there is no time to think or plan; there is just the necessity to cope, often on a high-technology level. It is very good experience for our engineers."
Like many other senior automotive industry executives in Europe, Bockelmann is concerned about the short supply of those engineers on the labor market. "In the Czech Republic, trained engineers, even those of a high caliber, will sell vacuum cleaners if they can earn more money than they would in the automotive industry," he said. "This is the 'Wild East'—a booming area where people have realized that the capitalistic way of life is the right way. It is exciting and full of opportunities. I just wish it were more full of engineers."
