The Volkswagen AG’s unit in Czech, Skoda Auto AS, increased its full-year forecast on sales. This is because the demand for the Roomster all-purpose vehicle and Fabia small car were up to a high. “Skoda estimates deliveries will increase about 13 percent to 620,000 units from 549,667 units in 2006,” said Chief Executive Officer Detlef Wittig during an interview at the headquarters in Skoda’s Mlada Boleslav, Czech Republic.

Only in February this year that Wittig made a forecast that sales will increase by up to 9.1 percent to 600,000. The six-month sales of the automaker made an increase of up to 15 percent from a year earlier to 310,000 vehicles as reported by Wittig, while their revenue increased between 7 and 8 percent.

The growth of profit “will be a little higher” than the sales increase as they said because Skoda has cut the production and the costs for material. The medium-term global target increase for the sales of Skoda of Wittig is 45 percent to 800,000 vehicles a year since the division expands production worldwide.

The Volkswagen’s second most profitable unit after the Audi luxury brand is planning on increasing their 2007 sales through their new version of their best-selling Fabia model. This model came to market in March and the Roomster was introduced in 2006. “The new Fabia and the Roomster are doing well, which is a good reassurance for the future,” Wittig said. The Czech division’s 2006 profit soared 40 per cent to a record 11.1 billion koruna ($520 million) as the Roomster appealed to buyers and thus the productivity improved.

The sales increased to 8.7 percent to 203.7 billion koruna. Skoda is investing a total of 350 euros or $471 million this year, and most of the money will be used for the expanding production capacity at the three existing Czech plants. However, they have no plans on adding a factory on th market even though they are experiencing a “tight labor market.”A fourth plant is absolutely out of discussion,” Wittig said. “The Czech labor market would not give us an opportunity to do that,” he added.

It was said by the government that their unemployment rate fell to 6.4 percent in May, which would be the lowest since 2004, the time Czech Republic joined the European union. Skoda also had to compete for workers as a joint venture was made between Toyota Motor Corporation and PSA Peugeot Citroen and other automakers expanded.

Wittig’s objective is to introduce a new model every year and that includes a new Sports Utility Vehicle called the Yeti, which is scheduled to come out in 2009. Also, they plan to release a Combi Fabia in 2008, which will be manufactured at the main plant in Mlada Boleslav.

Skoda alo plans on expanding in emerging countries like Russia, India, and China. This year’s division began on selling the Octavia mid-size sedan produced at the Volkswagen plant in China, and they will also manufacture the Fabia and Superb, its most expensive vehicle.

The joint Volkswagen and Skoda factory will help the automaker in avoiding a 25 percent tax on imported vehicles. “Skoda now has 50 exclusive dealerships in China and by the end of the year will have 80 outlets,” Wittig said. “Skoda has received orders in the last month for about 10,000 cars in China and expects to sell as many as 30,000 vehicles there this year,” he added.

The first Octavia in Russia will be assembled from kits staring October or November with the full production beginning in 2009. “The major growth rate in the future will be in the emerging markets, in Russia, India, and China,” Wittig said.

The production for those cars “will be done in those markets.” The division in March began selling the first complete remake of the Fabia since its introduction more than seven years ago. 1.6 million units of Fabias were already sold by Skoda since its debut in 1999.

Pricing and specifications of the revised Phaeton luxury saloon has already been announced by Volkswagen ahead of its launch on September this year. The revisions made on the Phaeton include an updated interior and exterior styling, a new engine that follows the Euro V emissions legislation, making it the first Volkswagen engine to follow such and is a 3.0L V6 TDI. This engine also prides itself of its more power than the outgoing unit.

This new engine uses common rail technology, with an utmost power output of 233 PS, which is eight more PS than its predecessor. This 3.0L V6 TDI engine also produces a torque measurable of up to 450Nm, 0-62 miles per hour in an approximate time of 8.4 seconds, and has a top speed of 146mph. But it still returns a 29.4 miles per gallon on the combined cycle. The 80 percent reduction in particulates (compared with the Euro IV) is one of the requirements of the Euro V emission and is not scheduled to come out until 2009, has already been achieved by this new Volkswagen engine.

Two other engines complete the Phaeton line up – the 4.2L V8 335 PS and the 6.0L W12 450 PS. All the models are equipped with the standard 4MOTION four-wheel drive and the long wheelbase, which gives 12cm additional rear legroom, are also available. The only thing offered with the standard wheelbase is the 3.0L V6 TDI engine.

There are certain subtle style changes on the Phaeton’s exterior and these are the re-profiled bonnet, newly-designed headlights complete with automatic driving lights, body coloured bumpers with chrome trim,cherry red rear light clusters, hazard lights which illuminate automatically in extreme braking situations for added safety, and chrome air inlets. There is an option however, to upgrade into the cornering bi-Xenon lights with LED daytime running lights. This innovation upgrade is already a standard on the W12.

Phaeton also now features a modified center console switchgear for enhanced ease of use in its cabin, and a new DVD navigation system. Again, as an option, the current telephone preparation is replaced by Voice Activated Mobile Phone Preparation. This already includes a Blueetooth Interface with hands-free operation and the control unit integrated into the “infotainment” system. This costs £825.00.

The prices for this revised Volkswagen Phaeton starts at £37,995* RRP OTR. This will arrive in UK in September this year and will be available to order now from Volkswagen retailers.

Strategic Vision has named Volkswagen of America, Inc. the best-full line manufacturer for the second consecutive year. Along with that, the Volkswagen Rabbit was also rated the top vehicle in its class in the yearly Strategic Vision Total Quality Index (TQI), which has the task of measuring the new vehicle owner satisfaction.

Alexander Edwards, President of Strategic Vision said, “On top of strong quality, the Volkswagen Rabbit hits a strong emotional chord with its buyers. Overall, Volkswagen vehicles have proven to be of high-quality and owners are passionate about the brand and their vehicles.”

In the small multi-function segment, Rabbit has ranked top above many various competitors, all of which had something to offer. Executive Vice President of Volkswagen of America, Adrian Hallmark said, “Volkswagen has continued to do well in the Strategic Vision Total Quality Awards. It reiterates that our vehicles are well crafted and fun to drive and that our owners are some of the most passionate drivers in the market.”

Hallmark also said, “Our continuing commitment to building high-quality vehicles is evident in important quality surveys, like Strategic Vision; it is Volkswagen’s objective to continue to improve our quality and receive scores among the top tier.”

The Strategic Vision Total Quality Index observes all aspects of the ownership experience – from buying and owning to driving the car. It associates the satisfaction of customers with complete ownership experience, owner reported delight, future purchase intent, perception of quality, and emotional attachment to the vehicle.