Škoda Auto's operating profit fell by 42 percent last year

Škoda Auto's operating profit fell by 42 percent last year

Operating profit of car company Škoda Auto fell by 42 percent last year

Automobile company Škoda Auto, emblem – illustration photo.

Wolfsburg (Germany) – Last year, the operating profit of the Škoda Auto car company fell by 42 percent to 628 million euros (almost 15 billion CZK). The results were negatively affected by the war in Ukraine, but also by higher costs and unfavorable exchange rate developments. Parent concern Volkswagen announced this in its earnings report.

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However, sales increased by 18.5 percent to EUR 21 billion (CZK 499 billion).

Already earlier, Škoda Auto announced that it delivered 731,300 cars to customers worldwide last year, which was a year-on-year increase of 16, 7 percent less. This was due to a persistent shortage of semiconductors, the war in Ukraine, difficulties in the supply chain, rising energy and raw material prices and continued uncertainty in global markets.

Skoda employs 45,000 people worldwide. It currently offers customers more than ten model lines: Fabia, Rapid, Scala, Octavia, Superb, Kamiq, Karoq, Kodiaq, Enyaq iV, Enyaq Coupé iV, Slavia and Kushaq.

Skoda Auto apart from the Czech Republic produces also in China, Slovakia and India, mostly through group partnerships, and in Ukraine and Kazakhstan in cooperation with local partners. It operates in more than 100 markets. Last year, it announced that it was entering the Vietnamese market.

In February 2022, the board of directors of the concern decided to stop production in Russia and exports to Russia for an indefinite period due to the Russian attack on Ukraine. This decision affects both Russian plants in Nizhny Novgorod and Kaluga. The year before, Russia was the second largest market for Škoda Auto.