The proceeds from the sale should help reduce the debt of the engineering company and contribute to its further development.
After 2029, the largest manufacturer of rolling stock in the Czech Republic will have to use a different brand than before. Skoda Group (of PPF Group) announced today it has agreed with the Skoda Auto carmaker on the complete transfer of trademark rights to the Skoda brand.
This should end the long-lasting confusion where the brand is used by two different companies with different products and owners. Globally, the brand has long been better known for cars. The parties have not disclosed the financial details of the transaction. It is not yet clear what new name and brand the engineering firm will use.
The rebranding “will not have any impact on existing, agreed or future contracts of the Plzen-based Skoda Group, including Skoda Transportation. All trademark disputes will be terminated and at the same time disagreements regarding the many years of concurrent use of the Skoda brand will be eliminated. As part of the agreement, Skoda Group can use the Skoda name and the winged arrow emblem until 2029,” PPF said in a press release.
Skoda Auto owned the Skoda brand and logo for cars and related goods and services but most of the historical rights remained with Skoda Plzen and its downstream companies. Skoda registered the winged arrow logo as a trademark in December 1923 and added the text Skoda in 1937. According to surveys, the public most often associates the Skoda brand with car production (93%), while only a quarter of the Czech population knows Skoda Transportation from Plzen.
The Skoda brand was named after Emil Skoda, the founder of the Plzen engineering plant; Skoda’s plants took over the Mlada Boleslav automotive company Laurin & Klement in 1925.
Edited and translated by Lucie Trávníčková.