Klaus Zellmer becomes the new Skoda CEO

Zellmer follows Thomas Schäfer in Mlada Boleslav, who in turn is set to take over the management of the Volkswagen passenger car brand. The 54-year-old Schäfer is a long-standing member of the group: He began his career at Porsche, where he was responsible for the North American market before his move to VW. Thomas Schäfer will be appointed Chief Operating Officer (COO) of the Volkswagen brand effective April 1 and will become a member of the Group Board of Management responsible for the Volume Brand Group. Ralf Brandstätter will remain CEO of Volkswagen until June 30, 2022, and will take over the Group Board Management Division China as of August 1, 2022. During the transition period from April to July, Brandstätter and Schäfer will prepare the seamless handover of the chairmanship, according to Volkswagen.

Russia was Skoda's second most important market and accounted for over ten percent of sales volume

Zellmer is entering turbulent waters: The war in Ukraine is hitting the Czechs hard: The VW Group has suspended its Russia business indefinitely. In 2021, Russia was Skoda's second most important market after Germany, with around 90,400 units compared to 136,800 cars. Skoda delivered 878,200 vehicles worldwide. Additionally, Skoda is also facing supply shortages. All of this is likely to burden the operational business.

What does this mean?

The VW Group is also undergoing a massive transformation – which leads to relatively quick changes at the top at Skoda. But given the external circumstances, the Czechs, like the entire group, now need continuity – because a change always means onboarding – a process that usually takes several months.