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Volkswagen Group's new strategy for Skoda is beginning to show its first results. In order to avoid competition between VW and Skoda products and to get a piece of the low-cost market, the German company’s plans for the Czech automaker include a new affordable model.

According to reports from the UK, Skoda has confirmed that the new addition will be a small sedan positioned between the Fabia supermini and the Octavia and will target developing markets. The sedan, which could be a competitor to Renault’s Dacia Logan, is scheduled for launch in 2012, but first Skoda will introduce a city car based on Volkswagen’s forthcoming Up series.

The VW Group’s Czech subsidiary Skoda has unveiled the Fabia R2, a new race-spec mode intended for the popular R2 rally category. Based on the series production Fabia, the R2 features significant changes to the engine, chassis, suspension and gearbox.

Skoda's offerings at the 2011 Geneva Salon include a new special edition version of the Fabia supermini that is said to have been created to celebrate 100 years of the Monte Carlo Rally, and commemorate the 110 year anniversary of the brand's motorsport efforts.

While competing in the Ronde de Andorra rally in Italy, Polish Formula 1 star Robert Kubica was involved in a horrendous crash on Sunday, as he lost control of his Skoda Fabia S2000 rally car and left the road at high speed. The Lotus-Renault team driver was airlifted from the scene and underwent successful emergency surgery at the Santa Corona hospital in Pietra Ligure.

Kubica has suffered multiple fractures to his right arm and hand with initial reports saying that he could lose the functionality of his limb. Fortunately, the operation went well, according to Dr. Mario Igor Rosello, who told reporters that Kubica, awakened form an induced coma, was able to move his fingers, which is “an encouraging sign for the rest of the recovery process”.

VW Group subsidiary Skoda is celebrating the 100 years of the Monte Carlo Rally as well as its own 110 year-long involvement in motorsports with the presentation of the Fabia Monte Carlo, a special edition version of the five-door hatchback model with bespoke exterior and interior styling cues.

The once ailing Skoda brand is turning out to be a solid investment for the Volkswagen Group as the Czech automaker is breaking one sales record after the other. In the year that just passed on, Skoda Auto recorded is best-ever sales results delivering 762,000 vehicles, which represents an increase of 11.5% over 2009 when it sold 684,200 units. Furthermore, the company broke the threshold of three quarters of a million vehicles sold in a single year for the first time in its history.

After focusing on the 'Mean Green' machine first, Skoda has now released a follow-up video clip documenting the fictional bad boy crew that builds the Fabia vRS hot-hatch in the firm's latest commercial on the car for the United Kingdom. The new campaign takes a darker but equally humorous twist on the Fabia’s ‘Made of Lovely Stuff’ proposition which was made famous by the 2007 Fabia ‘Cake’ commercial. You can watch the new ad in the video after the jump.

In celebration of the International Rally Championship (IRC) title won by its Fabia S2000, Skoda has rolled out a limited-run edition version of its road-going Fabia RS hot hatch dressed in the firm's racing colors. All 200 examples of the car will be painted in a Rally Green finish with a white roof, white alloy wheels and stickers from the rally-spec S2000 model.

As Skoda is enjoying its best year on record, the VW Group-owned company wants to build on the momentum by launching a new TV campaign for the Fabia vRS hot hatch. The new ad, which is meant to show the darker side of the 180-horsepower-strong hatch, features the "Made from Meaner Stuff" tagline. There will be two versions of the TV commercial, a short 30 second ad and an uncut, 60 second advert.

Just today, we learned that Skoda delivered a record number of vehicles in the first nine months of 2010, increasing its operating profit by a whopping 64%. This is what most people know about the Czech automaker; that it has been a wild success since Volkswagen took over the reins of the company. But there are others -myself included- who think the real glory of Skoda lies in its past.