Re: Skoda Kushaq breakdowns & problems I think it is time Skoda made some "signature" changes. The current team is completely overwhelmed as can be seen from Zac's recent tweets where he is arguing with a customer on whether RSA service arrived in time or not that too on social media  He is even wanting to personally verify call records to disprove the customer's claims on whether RSA worked as expected or not!
Zac and the team are getting extremely defensive and panicky. I can imagine the pressure from group headquarters is intense, having invested billions of dollars in MQB-A0-IN project, which is off to one of the worst starts imaginable.
Sometimes leadership team that is embroiled in the middle of a crisis develops group-think that is hard to break. They get sucked down a vortex made of their own hard positions taken previously which they find hard to reverse.
The German precision which is unrelenting on using facts and data to analyse situations gets spooked when they cannot find the exact root cause and solve a problem in a 100% clean way. Headquarters is probably hopping mad that the analysis and remediation presented to them on the fuel pump replacement is still not solving the issue.
Sadly, here are two very competent products, that can bring a smile to every India customer who loves driving, that are probably the safest in the segment and have the best backseat room and comfort in the segment. And a number of products such as the sedans based on the platform that will be even more fun to drive.These lovely products that are the result of a lot of hard and thoughtful work are at the risk of being sacrificed and nearly destined to be premature market outcasts in the cacophony that is happening right now.
In such crisis situations, it is sometimes better to make a complete fresh start with new leadership from outside who can be free of baggage of the egos and past positions taken, sit down and look at the whole longitudinal progression of events and data and take some hard decisions immediately. Otherwise the group risks a huge loss of momentum on thia crucial set of launches. As it is, timing and competition could not have been more severe. Chip shortages and aggressive competitors like MG Astor and Mahindra XUV700 are big headwinds that were not expected by the slow and steady product/market planners at Skoda.
So, I would recommend: - Zac to be immediately recalled to HQ
- VW take over the MQB-A0-IN project and the entire launch schedule ownership for India back from Skoda
- Put a halt on VW Taigun launch and move it to next year
- Pause deliveries of Kushaq for 12 weeks until comprehensive root cause analysis, resolution and extensive testing of fixes are complete.
- Buy back any Kushaq which shows an EPC error at full market price as these will be the best test units for replicating and fixing the problem
- Provide Ron 95 fuel cards to make up for fuel price difference to all existing Kushaq owners and strongly advise them to only use this fuel.
- Provide some form of goodwill compensation even after the problem is fully fixed, to all existing owners
- Set up a command center to make sure any person calling into RSA on EOX problems gets service within a guaranteed period (say 1 hour). The command center should also be able to capture all environmental variables around each breakdown, such as last fuel pump used, temperature, humidity and other conditions at the point of breakdowns, etc. (The whole aspect of many more failures in North versus South intrigues me, could it be factors other than fuel quality?).
- Obtain fuel samples immediately from the last pump used to analyse fuel quality rapidly to see if this indeed is an issue
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This situation is going to be a business school case study and will be discussed and remembered for a long time to come.VW and Skoda have to act decisively and aggressively if they have to emerge from this tunnel intact. Otherwise, the group will have to bow out of India like their other Western competitors have done as the last chance of capturing decent market share and being a viable player slips out of their grasp. And that will be a sad day for the Indian consumer.
Last edited by 84.monsoon : 2nd October 2021 at 09:54.
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