Abstract: Winfried Vahland sent senior executives to China 10 months again after he was appointed Chairman of the Board of Directors of Skoda. Given that the performance in China in the past one year, Winfried Vahland who knows Chinese car market well decided to take further measures in China. Obviously, he hopes to strictly implement global strategies made by Skoda headquarter in China, the largest car market in the world.

　　"From today, Dr. Gerrit A. Marx will be my plenipotentiary in China," said Winfried Vahland patting the shoulders of Marx, while warmly invited media to take a photo for them.

　　This is the third time that Winfried Vahland has been in China in the past 10 months. And this time, he was determined to adjust the two senior executives of Skoda China. Actually, he hopes to strictly implement global strategies made by Skoda headquarter in China, the largest car market in the world.

　　Alfred E Rieck resigned ahead of schedule after took office for less than 2 years

　　At the press conference on June 30, Winfried Vahland announced that Dr. Gerrit A. Marx would be appointed president of Skoda China, and Alfred E Rieck, current president of Skoda, would be transferred to Europe to take charge of a functional department of Volkswagen. Meanwhile, Paul Willis was appointed executive director of Shanghai Volkswagen Skoda brand marketing division, while Peter Miling, the former executive director, would be transferred to Volkswagen China to take charge of distribution and service network development.

　　Winfried Vahland didn’t make a clear explanation why Alfred E Rieck and Peter Miling were replaced only less than two years after they took office, only said: "We need a very experienced team to adapt to the rapid development of us." It is noteworthy that Winfried Vahland didn’t mention Alfred E Rieck’s early departure was related to his body. The successor, 35-year-old Dr. Gerrit A. Marx once worked as president and CEO of Daimler Trucks (China), responsible for fields such as sales, after-sale services and sales network development of Daimler trucks and private cars, service and sales network development. Meanwhile, he also took charge of the joint venture project between Daimler Trucks and Foton.

　　"Dr. Gerrit A. Marx will bring his deep understanding and experience of Chinese car market, so he could further strengthen the implementation of growth strategy of Skoda in China," said Winfried Vahland. Compared with Alfred E Rieck who previously had no work experience in China, Winfried Vahland chose to trust Dr. Gerrit A. Marx who previously worked for two years in China.

　　In fact, Skoda China’s management team had quietly begun to sort out responsibilities of work and personnel before the announcement of personnel changes. On June 8, Skoda China announced that 47-year-old Christoph Ludewig would be appointed the first public relations director of Skoda China.

　　Ma Jinghua started to be responsible for relationship with Chinese media. In September 2010, Ma Jinghua resigned from BMW to be the vice president of Skoda China, responsible for branding and marketing of Skoda. Juliane Boetel who joined PR team on May 1, 2011, would be responsible for media services and media campaigns work.

　　New president faces new challenge with the clarity of internal functions

　　On August 2009, Alfred E Rieck announced Skoda China was founded, since then rumor about "Skoda planned to receive right" has been spreading. Winfried Vahland restructured Skoda China through reinforcement of personnel and institutional expansion after he became Chairman of the Board of Skoda last September, so as to further strengthen its brand and product planning functions. But up to now the result is not satisfactory.

　　"There is a clear division of functions between Skoda China and Shanghai Volkswagen Skoda Division. Skoda China is responsible for product planning and brand strategy, while Shanghai Volkswagen Skoda Division is responsible for production, sales, service and other work," Volkswagen China vice president Yang Meihong agiin stressed to the media division of responsibilities of the two units on June 30 after the press conference. However, brand awareness of Skoda failed to improve simultaneously in China though products launched by Shanghai Volkswagen Skoda are favored by consumers.

　　In the first half of 2011, Skoda sold a total of more than 112,000 vehicles in Chinese car market, an increase of more than 20 percent, again breaking its half-year period sales record in the Chinese car market.

　　Since entered China in 2007, Skoda has sold a total of more than 500,000 vehicles in China. Although sales data are satisfactory, because the joint venture mainly focuses on profit, brand construction is neglected. Currently, the Skoda brand is still in the shadow of Shanghai Volkswagen. Skoda’s brand independence and awareness is limited, which is vital to growth of Skoda in China.

　　"We believe that China's passenger car market will reach 20 million vehicles at the end of this decade. For Skoda, 3 percent of market share is a very good goal." According to Winfried Vahland’s planning for Chinese car market, development of Skoda’s global brand strategies, are vital to its growth in China.

　　"Skoda China's marketing department will continue to be responsible for core function, that is brand positioning, and it will not change," said Yang Meihong.

　　Considering that Winfried Vahland reaffirmed in the short term there is no plan of import sales, how to accurately position Skoda’s future in China under the framework of its global brand strategies, is posing challenge to the new president Dr. Gerrit A. Marx.

　　The fifth model to be launched in 2013

　　"According to the current performance made by Skoda brand in China, and given that Chinese car market has considerable demand for model positioned between Fabia and Octavia, we decided to launch the fifth model in 2013. Project concerning this model will be located in Shanghai Volkswagen, and the new model will be produced in Jiangsu together with Yeti," Winfried Vahland revealed the information of the new model on the press conference.

　　Winfried Vahland said pre-market research of the new model would be completely done in China. The new model will be launched in China first, and then will be sold in other countries. It is reported that this is the first time Skoda has developed a model to be sold globally outside Czech.

　　"This model’s development team consists of personnel from the Shanghai Volkswagen R & D department and Czech R & D department. I believe through this project, Shanghai Volkswagen can show its ability in product development," said Winfried Vahland.

　　According to Jia Mingdi, Shanghai Volkswagen sales and marketing operations manager, general manager of Shanghai Volkswagen Sales, the new model is positioned as A-Class compact sedan.

　　In accordance with Skoda existing models, the new model with relatively spacious internal space and good quality will target the home market. Earlier this month, Sohu Auto exclusive revealed spy photos of Fabia sedan coded Volkswagen SK251, which seems to be consistent with the new model. But Yang Meihong denied the report.

　　Late last year, Skoda China reached an agreement with Shanghai Volkswagen to produce Yeti in China, so Yeti has become the fourth model of Skoda being produced in China.

　　Jia Mingdi pointed out that localization of Yeti and the forthcoming new model would further increase Skoda brand’s percentage of Shanghai Volkswagen’s total sale. Skoda now accounts for 20 percentage of Shanghai Volkswagen’s total sale, but it plans to increase the percentage to 30 percent in the future.

　　In order to achieve this goal, sales network of Shanghai Volkswagen Skoda will be increased to 400 from the current 330. Furthermore, Skoda plans to do corresponding network layout every year. (Translator: Qinghua Wade)

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　　http://auto.sohu.com/20110701/n312192471.shtml