Over 128 years Skoda grew from a local bicycle workshop into a global carmaker through repeated strategic cooperations — from the founders' partnership to industrial alliances, design studios and international production ties.
This article highlights key cooperative milestones: the Laurin & Klement founding, the Skoda Works takeover, major manufacturing and design collaborations, overseas projects such as Trekka and SKOPAK, and market expansion into China and India.
In Mladá Boleslav two cycling enthusiasts — Václav Laurin, a mechanic and inventor, and Václav Klement, a bookseller and businessman — joined forces and founded the L&K brand just before Christmas 1896.
Sporting success drove commercial demand and, in 1907, Laurin & Klement converted to a joint-stock company with new international investors, including Prince Erich von Thurn und Taxis and Count Filippo Consolati, strengthening access to elite markets.
After World War I and economic disruption, Laurin & Klement were rescued by Skoda Works of Pilsen; the takeover provided finance, modernisation and access to large-scale engineering expertise for renewal.
The new Mladá Boleslav plant opened for the Skoda 1000 MB in 1964 with equipment from more than 300 companies, including foreign suppliers, and pioneered pressure die casting of aluminium engine blocks in mass production.
The Trekka, developed in 1966 from an Octavia Super chassis and supported by Skoda technicians, was produced in New Zealand until 1972; around 2,800 units were made and exported regionally.
The Favorit project (from 1982) introduced front-wheel drive and modern styling from Bertone, and involved international partners such as Porsche and Volkswagen — a step that helped Skoda find success in western markets.
Skoda joined the Volkswagen Group in 1991, securing large-scale investment in research and local development; the move transformed production and integration within the wider group.
Skoda expanded manufacturing abroad through local partnerships: the Aurangabad plant in India began assembly in 2000, and large-scale return to China started in 2007 via SAIC Volkswagen joint ventures, making China a major market.
Over the past 128 years, Skoda has developed into a comprehensive automotive company, thanks in part to its unique partnerships. These range from collaborations between founders to support for current sports and culture. Let's explore these deep collaborations in the article.
In the town of Mladá Boleslav, two cycling enthusiasts happened to be thinking about building Czech bicycles. Why compete when they could cooperate? Moreover, they complemented each other very well. Václav Laurin was a technician with heart and soul, with creative intuition, an experienced mechanic and, above all, humble and hardworking. Bookseller Václav Klement was a shrewd businessman, a visionary with a wider range of knowledge and what we would call soft skills today. But he needed a technically minded partner to get the official license. Their first meeting was mediated by another cyclist, a local lawyer, Dr. Zimmermann, who was always trying to promote his beloved sport in his homeland. We may not know the date of this meeting, but one thing we know for sure: the two men found common cause. Just before Christmas 1896, Laurin and Klement joined forces and founded the L&K brand.
Sporting achievements boosted Laurin & Klement's commercial success, creating domestic demand and numerous export markets. Bank loans were insufficient for major expansion so, after two years of preparation, the partners converted the company into a joint-stock company, registered on 17 July 1907. New shareholders strengthened the company's international character, paying a total of 1,968,750 crowns for shares when the company had originally been valued at 450,000 crowns. Investors from the aristocracy opened doors to high society and influence abroad.
The end of World War I in November 1918 brought peace but also new economic challenges: traditional markets collapsed, new states raised import tariffs, and Russia fell into civil war. In this situation Laurin & Klement were saved by a strong strategic partner. Skoda Works of Pilsen, controlled by French owners after 1919, provided the automotive firm with financial backing that enabled fundamental modernization, including a modern plant and production line, and access to extensive machine-building expertise.
The Skoda brand remained linked to Czechoslovakia's presidents; for example, Tomáš Garrigue Masaryk used several L&K models and later a Skoda Hispano-Suiza limousine produced under licence in Pilsen. Testing in France showed the Czech-built car to be smoother and better produced than the original in some respects.
In the late 1950s a major project prepared a new, highly modern plant for the Skoda 1000 MB launched in 1964. The facility incorporated advanced induction furnaces, foreign lifting and casting equipment, and automatic Renault engine assembly lines. Over 300 companies, 134 from outside Czechoslovakia, contributed to equipping the new plant. The metallurgical works pioneered pressure die casting of aluminium engine blocks for mass production, improving energy use and efficiency.
Skoda also developed market-specific models. The Trekka, produced in New Zealand from 1966, was based on a shortened Octavia Super chassis. Skoda sent technician Josef Velebný to support local partners; production lasted until 1972 with some 2,800 vehicles made, and parts were exported to Pakistan and Australia.
In the late 1960s the company worked with Ital Design and Giorgetto Giugiaro on the Š 720 project, creating a very elegant sedan and other variants. Although political tensions later halted that project, the collaboration demonstrated Skoda's growing ties to Western design expertise.
In May 1970 production of a new vehicle began in Karachi as SKOPAK, a joint venture with Haroon Industries, again based on the Octavia chassis. Practical design choices aimed to ease repair and adaptation to local conditions, but regional conflict limited output to around 1,400 units.
The Favorit project (initiated in 1982) brought front-wheel drive, modern design by Nuccio Bertone and significant production modernisation. During development Skoda cooperated with international partners including Porsche and Volkswagen. Favorit's success in Western markets played a role in Skoda eventually becoming part of the Volkswagen Group.
The collapse of the Soviet bloc opened the way for economic change and, in 1991, Skoda was merged into the Volkswagen Group. The move secured the brand's survival and launched large-scale investment in local research and technical development; Skoda also began producing components such as engines and gearboxes for the wider group. Skoda later expanded production internationally, including plants and cooperation in China, Russia, Slovakia, India, Ukraine and Kazakhstan.
Skoda has also maintained long-term sports sponsorships: it has been a partner of events such as the Tour de France and the IIHF Ice Hockey World Championship since 1992, a cooperation recorded in the Guinness World Records.
The company announced expansion into India at the 1998 Auto Expo, and the Aurangabad assembly plant's groundbreaking was held on 13 January 2000, with Octavia production starting in November 2001. In China large-scale cooperation resumed in June 2007 as part of the SAIC Volkswagen joint venture, with production of Octavia in Ningbo and later local assembly of other models across multiple plants.