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Skoda Auto Czech pronunciation listen more commonly known as Skoda, is a Czech automobile manufacturer founded in 1895 as Laurin & Klement. It is headquartered in Mladá Boleslav, Czech Republic. The car manufacturer was acquired by Škoda Works in 1925 and later became a wholly owned subsidiary of the Volkswagen Group in 2000. Initially, the company was meant to serve the role of the VW Group’s entry brand. Over time, however, the Skoda brand has shifted progressively more upmarket, with most models overlapping with their Volkswagen counterparts on price and features, while eclipsing them on space. Its total global sales reached 1.04 million cars in 2014 and had risen annually by 12.7 percent. After World War I the Laurin & Klement company began producing trucks, but in 1924, after running into problems and being affected by a fire on their premises, the company sought a new partner.

Mean while, Limited Company, formerly the Škoda Works, an arms manufacturer and multi-sector concern which had become one of the largest industrial enterprises in Europe and the largest in Czechoslovakia, started manufacturing cars in cooperation with Hispano-Suiza. Škoda sought to enlarge its non-arms manufacturing base and acquired Laurin & Klement in 1925. Most of the later production took place under Škoda's name.The new design of chassis became the basis for models Popular (845-1,089 cc), Rapid 1165 to1766 cc, Favorit 1802–2091 cc and the Superb (2.5 to 4 l). While in 1933 Škoda had a 14% share of the Czechoslovak car market and occupied third place behind Praga and Tatra, the new line made it a market leader by 1936, with a 39% share in 1938.