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Volkswagen Group’s financial restructuring could soon kill the Skoda Superb! The Superb is now the company’s largest sedan- the absolute flagship. It is sold in multiple international markets. The latest remarks from Skoda CEO Klaus Zellmer have indicated that this model may not have a future.

Volkswagen Group is parent to several brands including Skoda. As part of the financial restructuring, it plans to cut jobs and reduce the number of products significantly across sub-brands. The total number will be halved within the next decade.

The Superb has been part of the company’s global portfolio since its modern revival in 2001. The model currently on sale globally is the fourth generation.

Speaking to a select group of media, Klaus Zellmer acknowledged that Skoda is currently looking at how its future line-up should be structured. Changing market trends are reportedly driving these thoughts. Buyers are increasingly moving away from traditional sedans and estate cars, putting pressure on models like the Superb.

Zellmer said that Skoda now has its biggest model portfolio ever. The lineup spans powertrain options- internal combustion, hybrids and EVs. He added that the transition to electric cars should eventually reduce some of this complexity.

The CEO, however, did not confirm that the Superb will be discontinued. His comments suggest that the model’s future is uncertain. He said that he is very proud of both the Superb and the Octavia. At the same time, the market realities are making their future uncertain. Sedans, limousines and estates are no longer having an uptrend in adoption.

Now come Skoda’s new-age all-electric offerings. The Volkswagen Group’s upcoming SSP platform will form the bases of many of these. It, Zellmer says, can accommodate vehicles that are almost as big as the Superb. Skoda is therefore considering whether it needs separate models for the Octavia and Superb segments or whether a single vehicle could serve both groups of customers.

Skoda’s Vision O concept previews the next-generation Octavia EV. The production form of this model is expected to debut before the end of this decade. It will be underpinned by the SSP platform. In dimensions, the Vision O sits in between the Octavia and Superb. This has fuelled questions about whether the future electric model could eventually cover a larger part of Skoda’s traditional sedan and estate markets.

The slower-than-expected adoption of EVs, however, remains a concern. If it escalates, we may see the plans getting rejigged. Skoda is even considering a range-extender powertrain for the production version of the Vision O, although no final decision has been detailed.

In short, the CEO’s remarks have hinted at the future of Superb being uncertain, although no specific timeline for its discontinuation was mentioned.

The possible end of the Superb, as mentioned above, is part of a larger strategy of Volkswagen Group. The group is planning a major cost-cutting programme. The key goal is to improve economies of scale and increase volumes of models that they sell. Instead of having several vehicles competing in closely segments, the group wants its individual brands to focus on specific areas of the market.

Zellmer explained this coordinated approach in detail. It could result in some products being developed by only one brand rather than having several brands under the group offer vehicles in the same segment. Skoda’s future product decisions will not thus be viewed in isolation.

Here’s more clarity on the approach. Volkswagen will build an electric city car based on the group’s MEB EV platform. Skoda is considering an electric Fabia. The recently-launched Peaq is also based on the MEB+ platform. It will be the group’s only mainstream electric seven-seat SUV.

These discussions surface at a time when Skoda is having a strong year. In Europe, it closed the first half of the year with a revenue of 16.0 billion euros and margins of around 8.5%. It is one of the most profitable brands within the group.

The carmaker has already unveiled the Superb in the Indian market. It is now gauging consumer interest in the model and plans to bring it as CBU imports. In the future, Skoda could capitalise on the India- European Union (EU) Free Trade Agreement (FTA) and pull off an attractive price for the Superb here. A fair price would make the Superb an instant success.

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