History of Skoda with Shortfall Insurance
Skoda is an automobile company founded in 1895 by two friends Laurin and Klement in Czech Republic. The company is now a subsidiary of German based, Volkswagen which is the world’s third largest automobile company. The company holds an amusing, interesting history. Situated in Austria-Hungary at the time, the company first began manufacturing bicycles.
In 1894, Vaclav Klement, an adventurous bookseller was finding it difficult to locate spare parts to repair his bicycle. Klement decided to write to his bicycles manufacturer, German based Seidel and Naumann asking for assistance in finding the spare parts. However to the surprise of Klement, he received a reply saying "If you would like an answer to your inquiry, you should try writing in a language we can understand”.
A determined Klement, in partnership with his friend Laurin decided to open a bicycle repair shop in 1895. The company later expanded into the motorcycle market and by the start of the 20th century, the company was a well-established company as it began manufacturing its first car, the Voiturette A. During the First World War the company decided to diversify into other markets and began producing trucks, buses and even aeroplane engines.
However as a result of poor economic conditions in Czechoslovakia and also a fire in one of its main manufacturing facilities, Klement and Laurin began experiencing financial difficulties and searched for a partner for investment. In 1925, it merged with Pizen Skodovka Co and became Skoda.
In the 1930's, the company introduced its most successful model, the Type A Skoda Popular. The Octavia model, again one of its other most successful models was also introduced in the 1980's. In 1990, during the fall of the communist Eastern Bloc, the now Czechoslovakia government decided to privatised Skoda and sell it to the German automaker Volkswagen.