The 100-Year-Old Merger That Created the Škoda We Know Today

When you see a top-spec Škoda gliding by (perhaps an Octavia or a Superb) you might notice a small, elegant badge on its flank: ‘Laurin & Klement’. To many, it simply signifies the highest trim level, a car packed with leather, tech, and all the creature comforts. But that badge is more than just a marketing name; it’s a direct link to a dramatic, century-old story of ambition, disaster, and a game-changing partnership that saved one brand and defined another. This is the story of how Laurin & Klement became Škoda.

It begins in 1925. The carmaker Laurin & Klement (L&K), based in Mladá Boleslav, was celebrating its 30th anniversary and 20 years of building cars. Founded by the visionary duo Václav Laurin and Václav Klement, the company had earned a reputation for quality and innovation. However, the roaring twenties weren’t roaring for everyone. In the aftermath of the First World War, the collapse of traditional markets within the former Austro-Hungarian Empire left many companies, including L&K, facing serious economic hardship.

Then, disaster struck. In 1924, a devastating fire ripped through the L&K factory in Mladá Boleslav, causing immense damage. Facing economic headwinds and a crippled production facility, Václav Laurin and Václav Klement knew they were at a crossroads. Their company needed a powerful ally to survive. They decided to seek a strong strategic partner.

An Unlikely Alliance

Enter the Škoda Works of Pilsen. At the time, Škoda was an industrial behemoth, a massive engineering and armaments group founded in 1859 that had grown into the largest industrial enterprise in the region under the leadership of Emil Škoda. The contrast between the two companies was stark. L&K employed around 1,125 people; Škoda had a workforce of over 30,000.

However, for all its industrial might, Škoda’s own automotive division was modest. Its output was mostly limited to licensed production of British Sentinel steam lorries and luxurious Hispano-Suiza cars. They had the industrial power and capital, but L&K had the dedicated automotive expertise and development heritage. The synergy was obvious. A merger guaranteed that car development and production would continue independently in its Mladá Boleslav home, a crucial factor for L&K.

On September 12, 1925, following approvals from both companies, the deal was officially sanctioned by the Ministry of the Interior. The Laurin & Klement company was formally removed from the commercial register later that year, but its spirit was far from extinguished. For a time, cars emerging from the factory bore both the traditional L&K logo and the new Škoda winged arrow emblem, a symbol of the transition.

The 100-Year-Old Merger That Created the Škoda We Know Today

A New Era of Growth and Modernisation

The merger was not a takeover, but a transformation. Under the Škoda brand, the Mladá Boleslav carmaker was revitalised. The new parent company launched an ambitious investment programme, introducing modern assembly line production, transferring cutting-edge technologies, and rolling out a wave of new models. This period of rapid growth cemented the brand’s position at home and abroad, giving it the resilience to weather the looming global economic crisis. The philosophy of Laurin and Klement—built on innovation, precision, and a passion for mobility—became an integral part of the Škoda brand’s DNA.

The 20th century brought further dramatic shifts, including the forcible separation from the Pilsen headquarters due to nationalisation in 1945. Yet, the most significant modern chapter began in 1991 with Škoda’s integration into the Volkswagen Group. This event provided the momentum for a new wave of modernisation, innovation, and global expansion that continues to shape the brand today.

The Legacy Lives On

As a tribute to its origins, Škoda revived the founders’ names in 1995. The Škoda Felicia Laurin & Klement was the first model to bear the designation for its highest trim level, featuring special paintwork, leather upholstery, and unique alloy wheels. Since then, the L&K badge has represented the pinnacle of comfort and style in the Škoda range, a constant nod to the company’s rich heritage.

The growth has been astronomical. A century ago, the company produced 833 cars with 1,800 employees. Last year, a global workforce of around 40,000 delivered over 926,000 vehicles worldwide. The legacy is honoured not just on the cars, but in the company’s very infrastructure, with its new office complex proudly named the Laurin & Klement Kampus.

So, the next time you see that L&K badge, you’ll know it’s more than just chrome. It’s a century-old symbol of survival, a strategic alliance forged in fire, and the enduring spirit of two founders whose names now adorn the very best their company has to offer.

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