Skoda makes VW sweat

New petrol engines in NZ-bound Skoda Superb will trim the price tag. Photo / Supplied

Skoda New Zealand general manager James Yates says he doesn't know if Skoda has fewer warranty claims than Volkswagen, Audi, or Porsche, stablemates under the Volkswagen Group banner.

"I couldn't say - I don't know how the others are doing. But I am certainly pleased with Skoda's performance," he said.

It is known, however, that warranty-wise, Skoda indeed has the cleanest record among the European Motor Distributors' offerings. Just that no one is saying so officially, not in New Zealand.

Not in Europe either. Not in so many words. Skoda parent VW has become so concerned with Skoda's improved place in the world that it is removing once-standard equipment. Decontenting they call it.

Skoda is the VW Group's entry-level brand, but VW management believes Skoda has moved too close to its main brand and is luring customers away from VW. The technically similar VW models cost more than a comparable Skoda.

VW chief Martin Winterkorn says the company will reduce Skoda production costs by cutting back on equipment levels.

"We cannot have a [Skoda] Fabia with a higher-value instrument panel then the [VW] Polo," he said at the Paris motor show.

Skoda, meanwhile, is not happy with its parent's plan to reposition the brand beneath VW in Europe. Skoda dealers don't agree that the brand attracts customers who would otherwise buy a VW.

Reducing the level of standard equipment on the Skoda is hurting customer satisfaction as well as making them angry, said Thomas Peckruhn, chairman of the Skoda dealer association in Europe

"We conquer customers from French brands such as Peugeot and Renault, including Dacia," Peckruhn said. He said Skoda will lose sales if its cars are decontented. "It is impossible to believe that customers will not notice something like that."

As an example, Skoda's semi-automatic climate control system with a cooled glove box has been removed even though it is a popular selling point.

VW have also removed other standard features such as the umbrella that was integrated into the rear door of the Superb. It is now an "accessory".

It's expected that other standard items will be moved to the options list, further angering Skoda dealerships. Despite the decontenting, Skoda sold 75,790 cars worldwide in September, its best-ever month. Sales of 568,990 cars for the first nine months of the year are up 12.8 per cent on 2009. Sales in China, Skoda's fastest developing market, jumped by 65 per cent over nine months to 134,470 units.

New Zealand has been moving along steadily. Skoda wrapped up a big government fleet deal last year to boost numbers. Take out the fleet deal and sales so far this year are up 45 per cent.

It continues to update models, this week delivering its latest line-up with a mix of new engines and gearboxes across the Fabia, Octavia, Yeti and Superb range.

A year or so ago Skoda was more or less set on becoming an all-diesel importer, with a petrol model here and there.

Not so now. Boosted petrol engines from parent VW are beginning to appear across the range. The TSI petrol units can rival diesels for fuel efficiency.

The Octavia Combi and Liftback models have been available in two specification levels for some time but recent arrivals have changed things.

The entry-level models are the petrol TSI 90 and diesel TDI 77. The TDI 77 has been available since the start of this year, but the new specification brings the price down by $3490. Skoda says it is a "repositioning".

The TSI 118 has replaced the 2-litre TDI models. With the upcoming all-wheel-drive Octavia Scout, the need for the standard 2-litre TDI models fell away, says Skoda. The TSI 118 is priced at $41,500.

Standard on all Octavia models are rain sensing wipers, automatic lights and a Bluetooth phone system. All the normal safety features (anti-lock brakes, stability control, six airbags and so on) are included.

The TSI 90 is a 1.4-litre 90kW unit mated to either a six-speed manual or seven-speed dual-clutch gearbox. It delivers maximum torque of 200Nm between 1500 and 4000 rpm. Skoda claims town-and-around fuel economy of 6.3 litres per 100km and CO2 exhaust emissions of 148gr/km.

The flagship Superb sedan and wagon get two new engines, a move designed to bring down the price point. The TSI 118 sedan is now available for $46,000. The TDI 103 carries a $2500 premium. Both engines are available in the wagon at a further $2000.