Skoda Considers N. American Market

Volkswagen AG’s Skoda brand is reviewing new markets to explore, including North America, a spokesman tells Automotive News Europe. Until now the company has focused on Europe and China.

No decision has been made by the brand, which is known in Europe for vehicles with low prices and high value. Analysts tell Reuters that Skoda would face a tough market in North America with an unknown brand and a product mix that lacks the pickup trucks and SUV/crossovers that are popular there.

Skoda’s worldwide sales in the first quarter of 2015 rose 4% to 276,600 units. The brand’s operating profit soared 30% to €315 million ($358 million).

One analyst opines that VW, reeling from its diesel scandal in the U.S., could jumpstart sales by using Skoda as a replacement for its namesake vehicles in the American market.