Skoda Aims to Double Output by 2025

The head of Volkswagen AG’s Skoda brand tells a Polish newspaper the unit aims to double annual production to 2 million units in nine years, largely by expanding its lineup of SUVs.

CEO Bernhard Maier tells Mlada Fronta Dnes the brand also will push into new markets that include Iran, Singapore and South Korea.

Skoda, which has been largely untouched by VW’s diesel emission cheating scandal, is enjoying booming sales in Europe. Bloomberg News points out the brand’s operating margin of 9.3% is six times as great as that of the VW brand.

The 212-year-old company became a VW Group affiliate in 1991, offering entry-level vehicles. It became a wholly owned subsidiary in 2000 and has expanded its lineup since them to compete more directly with several VW brand models.