When You Finally Realise A Low Wage Economy is The Reason Why Skoda is Priced Cheaper Than VW

By Anthony Henson, August 9, 2022


Nicola Hume is the greatest matter to transpire to the Vehicle Categorical YouTube channel due to the fact its inception. Luckily Mrs. Hume is not a qualified journalist and as a outcome, arrives across as a absolutely pure presenter. Try to remember people, as a aspect notice, journalism faculties exist to teach foreseeable future qualified journalists how to lie. Mrs. Hume is a curious particular person and for the duration of her review of the Skoda Fabia out of the blue realizes that it features a improved proposition than the VW Polo.

Mrs. Hume then goes on to expose that the Fabia is an exercising in merchandise manufacturer washing in so considerably as it is a Volkswagen Polo in disguise. At this place, Volkswagen’s Products Supervisors will have to be pulling their hair out and the Skoda PR people today must be facepalming simply because a journalist is not lying on their behalf. Mrs. Hume has uncovered the magician’s insider secrets.

Why is the Skoda cheaper and greater than the VW Polo on which it is centered? Mrs. Hume asks herself. Let’s try out to get the job done this just one out.

The Skoda Fabia is constructed in the Czech Republic in which the common least regular wage is involving $500-1000. The place has an once-a-year GDP hovering at all-around $450 Billion. In Germany, the typical monthly wage is all over $4,000, and the country’s annual GDP is $4 Trillion. Germany even recorded a spending budget surplus in 2019.

With all this details to hand we can now conclude the variables associated in creating the Skoda Fabia less costly than the VW Polo… drum roll…

The Czech Republic basically offers reduce labor expenses. VW does not have a producing base in the Czech Republic because it desires to assistance the people today. It’s purely the outcome of mergers, acquisitions, and the chilly tough actuality of doing enterprise.

You could also argue wage suppression is an added factor that can make the Skoda Fabia price aggressive but that’s a further argument for another working day. And do you what? the Volkswagen Polo progenitor isn’t even produced in Germany anymore.

The finish.

When You Finally Realise A Low Wage Economy is The Reason Why Skoda is Priced Cheaper Than VW