Skoda Auto Achieves Positive Results Over First Six Months Of 2006

Having delivered 274,904 vehicles to customers over the first six months of 2006, Skoda Auto has increased 12.4 % compared to the same period of last year. Sales of all of models have grown, particularly those of the Octavia. Skoda's market share has improved significantly in Western European countries (Germany, in particular) as well as in Eastern Europe. Due to overall market developments, the situation in Central Europe is still difficult.

With a pre-tax profit of CZK 8,2 billion (£196 million) achieved over the first half of 2006, the Skoda Auto Group has broken another record. In addition to the impact of increased sales, the significant financial improvement (+61.4 %) is a result of measures that are aimed at optimising processes as well as production and material costs and have been designed in the ForMotionplus programme used throughout the Volkswagen Group.

The number of the company's employees worldwide, including agency-supplied staff, was 27,069 as at the end of the first six-month period. This is an increase of 874 employees compared to last year and is mainly due to the launch of the Skoda Roomster, the company's fourth product line.

Commenting on the results, Skoda Auto Board of Directors Chairman, Detlef Wittig, said, "Improved operational and financial effectiveness, savings in production and sales costs and increased market share in all important sales regions have produced the desired result, that is, record-breaking profits over the first six months. The consolidated results over the same period have confirmed that the Skoda Auto Group is doing well in pursuing the financial and market goals set for 2006."