The Brand from Central Europe

Photo: Skoda Octavia Limousine Greenline
Skoda Octavia GreenLine saloon (1.6 TDI) – fuel consumption in l/100 km: urban 3.9 / extra-urban 3.2 / combined 3.5; CO2 emissions in g/km: 90 (combined); CO2 efficiency class: A+

With over 120 years of vehicle manufacturing experience, ŠKODA Auto is the largest industrial company in the Czech Republic and the third oldest car manufacturer in the world. In 1991, it was the fourth brand to be incorporated into the Volkswagen Group, when it was positioned as the Group’s entry-level brand. Since then the production is six times bigger than in 1991. Today, ŠKODA operates three production plants in the Czech Republic and a further six plants in other countries.

ŠKODA currently generates 8% of the Czech Republic’s total exports, supplying vehicles to 102 countries on five continents. Among the best known models are the Octavia, the Rapid, the Fabia, the Superb, the Yeti and the ŠKODA Citigo, a popular model in Europe. In 2015, the fourth year of the ŠKODA growth strategy, 1,055,500 cars were sold worldwide. For the first time, ŠKODA’s European market share grew to over 4%, while China maintained its position as the brand’s strongest market with 281,707 cars sold, an increase of 0.1% over 2014. In recent years, ŠKODA has regularly featured at the top of the “Czech Top 100” rankings in the “Most Important Company” and “Most Admired Company” categories. ŠKODA employs more than 25,500 people, and is the only company in the Czech Republic to operate its own vocational school and university. The company has won the “Employer of the Year” award on numerous occasions.

Key to the future success of ŠKODA AUTO in facing these challenges is sustainability, which involves the creation and sharing of values between the company and all stakeholders, internal and external. The company creates shared values through its CSR activities and GreenFuture environmental strategy, but also by establishing and adhering to principles of ethical and transparent conduct. ŠKODA’s senior management team is kept informed on all matters relating to sustainability management at the company on a regular basis.

2015 Highlights

“Generous Donations by ŠKODA Employees – 1,77 Million Czech Koruna for Charitable Projects”

Millions Donated for a Good Cause

In 2014 and 2015, ŠKODA employees raised 1.77 million Czech koruna for selected projects. The company’s own donation almost doubled this figure, bringing it to 3.5 million koruna. In line with ŠKODA’s CSR priorities, this money will go towards supporting charitable projects for children, education, barrier-free access for the disabled, and road safety. Some of the money will also be donated to a children’s home in India.

Teribear Charity Runs

In 2015, ŠKODA sponsored the Tereza Maxová Children’s Foundation’s “Teribear charity runs". Every km in the 10-day “Teribear moves Prague” event and the one-day “Teribear moves Mladá Boleslav” event raised money for disadvantaged children. Runners in the Prague event ran day and night, with event partners donating 10 Czech koruna per km towards projects to support children in need. A total of 4,492 people took part, covering a distance of 60,287 km overall and raising more than 3.8 million koruna. The Mladá Boleslav run on behalf of Krnsko Children’s Home involved a large number of ŠKODA employees, as well as members of the general public. During the one-day event, more than 1,100 people covered a distance of 9.63 km, raising almost 200,000 koruna.

Safety and Precision

A lightweight robot has been in operation at the ŠKODA plant in Vrchlabí since 2015, improving safety and precision in the production of the DQ 200 dual-clutch gearbox. For the first time at ŠKODA, humans and robots are now working side-by-side on the same manufacturing task, which requires an exceptionally high level of precision. Weighing a mere 23.9 kg, the robot is a true lightweight and highly flexible in use. As a result, in recent years the Vrchlabí plant has built a reputation as a high-tech site. With some 1,000 employees, the ŠKODA Vrchlabí plant ranks as one of the main employers in the Hradec Králové region. While preparing for volume production of the DQ 200, ŠKODA and the Volkswagen Group invested a total of €245 million in the construction of factory buildings, technical systems, a Training Center for gearbox manufacturing, and logistics.

Other Projects

Half a Million Trees for the Czech Republic

As part of ŠKODA’s “A tree for every ŠKODA sold in the Czech Republic” project, the company planted more than 550,000 trees in some 50 locations between 2007 and the end of the reporting year. Trees are planted for the benefit of towns and communities throughout the Czech Republic. A key focus is on the regions in which ŠKODA has production facilities. From the start, employees at ŠKODA production sites have been actively involved in implementing the campaign. They are involved in the search for suitable locations, as well as the actual planting. This active involvement strengthens the bonds between employees and the areas in which they live and work. This was a key objective of the campaign right from the outset.

ŠKODA Academy

The ŠKODA Academy comprises three main parts – an adult training, a vocational school and employee potential assessment. The adult training program is responsible for the personal development of ŠKODA AUTO employees, as well as the development of their technical and interdisciplinary skills. 29,169 participants took part in off-the-job adult training courses in 2015, and 45,903 took part in eLearning courses. The company can be justly proud of its vocational students, who regularly rank among the best in national and international competitions. Students can also enhance their skills in a project that requires them to build their own prototype car. This project, dubbed Apprentice Car, was launched in 2013 and by the end of the reporting period, trainees had built two impressive cars. The first, CitiJET, was produced in 2014 and the second, FUNSTAR, was completed by students one year later. In 2015, the school offered 14 courses in subjects such as IT mechatronics, logistics, auto mechanics, electrical engineering and tooling, including a special course for disabled apprentices. It had nearly 900 full-time students and apprentices. 

ACBSP Accreditation for ŠKODA AUTO UNIVERSITY

The ŠKODA AUTO UNIVERSITY is the first and only university in the Czech Republic to belong to a company. It was founded in 2000 and offers Bachelor and Master degrees in Economics and Business Administration. 1,000 students are currently enrolled at the university, 100 of whom are also employed by ŠKODA. The university has been participating in the Erasmus scheme since 2005. As part of an international network, it cooperates with universities in Germany, Austria and Spain. In 2015, the ŠKODA AUTO UNIVERSITY was accredited by the Accreditation Council for Business Schools and Programs (ACBSP).

Health care – focus on prevention

The ŠKODA Polyclinic, located at the main plant in Mladá Boleslav, provides outpatient medical care for both employees and the general public. The range of care provided includes general medicine, cardiology, dentistry, dermatology, ENT, gynecology, internal medicine, neurology, ophthalmology, orthopedics, pulmonology, sonography, surgery, urology and X-ray diagnostics. 

ŠKODA employees can participate in the prevention programs free of charge. These include individual and group training sessions aimed at preventing health problems resulting from workplace or lifestyle factors. In the reporting year, a number of ergonomic interventions were implemented. The company also continued to carry out ergonomic risk assessments using the EAWS (Ergonomic Assessment Worksheet) in order to analyze and evaluate risks caused by physical stress in the manufacturing process. Using the EAWS, a comprehensive ergonomic assessment of work tasks can be performed that takes account of both the intensity and duration of any form of stress. A new project for the psychological assessment of workplaces was introduced, providing an important perspective for improved workplace monitoring.

Stakeholder Dialog

As a brand, we always aim to maintain close contact with our main stakeholders: employees, high potentials, partners, customers, politicians, state administrators, academics and NGOs. ŠKODA identifies relevant needs and requirements through personal discussions, meetings, participation in public forums, seminars and university lectures. ŠKODA has not yet organized a stakeholder survey or materiality matrix of its own, but instead uses the findings from the Volkswagen Group stakeholder dialog (also at international level). In 2016, ŠKODA AUTO is planning to formalize its stakeholder dialog.

Awards

Connected Car Award 2015

Introduced by ŠKODA in 2015, the system allows selected vehicle data to be accessed from a smartphone or tablet computer.

Excellent: ŠKODA Company Health Insurance Fund

The ŠKODA company health insurance fund ZPŠ was named “Best Health Insurance 2015” in the Czech Republic.

Recognition by the Ministry of Health

In the reporting year, the Ministry of Health in the Czech Republic presented ŠKODA with the “Health Promoting Enterprise” award.

Factory of the Year

The ŠKODA plant in Vrchlabí was awarded the title “Factory of the Year 2015”.