Czech carmaker Volkswagen Skoda Auto on Monday named VW South African chief Thomas Schaefer as its new president from a broader reorganization of the German car group.
Schaefer replaces Bernhard Maier, who left the Czech company last month after nearly five years, when he led the 125-year-old Skoda to make a profit.
Skoda is the country’s largest exporter in Central Europe, but his good luck has caused friction within Volkswagen, whose union boss has accused him of cannibalizing sales.
The Czech company delivered 1.24 million cars internationally in 2019, with China and Germany being its main markets. Like other automakers, Skoda is suffering closures due to the coronavirus crisis and now faces uncertainty about demand.
However, he said last week that he had noticed signs of recovery, after deliveries for the first half of the first half fell by 31% and the group’s leading executive, Herbert Diess, told Frankfurter Allgemeine Zeitung (FAZ) that Skoda, one of VW’s 12 brands, had to do more to compete with the South. Korean and French rivals.
The unions, historically strong in Skoda Auto, said it was unclear what Schaefer’s appointment would mean for the management of the Czech car manufacturer.
Schaefer, who takes on the task quickly, joined Volkswagen from Mercedes-Benz in 2012 and has run Volkswagen Group South Africa since 2015, which produces cars and engines primarily for export. He reached a record in 2019.
Schaefer has led VW’s broader African operations and led the progression of production centers in countries such as Ghana, Nigeria and Kenya.