Volkswagen’s Goal of No. 1 Depends on Skoda Sales Targets: Cars

Skoda, the Czech carmaker rescued from the collapse of communism by Volkswagen AG, aims to grow twice as fast as its parent by becoming the next “people’s car” after recent efforts to move upmarket ruffled VW.

The shift to a no-frills approach diffuses tension after Skoda encroached on VW’s market with the upscale Superb sedan and wagon, leading to the departure of former chief Reinhard Jung. The brand kicks off its focus on basic transportation this week with the new Citigo, an urban compact hatchback, which goes on sale in the Czech Republic for less than $10,000.