the Favorit front-wheel drive hatchback in 1987 as an eventual replacement. The fall of communism with the Velvet Revolution brought great changes to Czechoslovakia, and most industries were subject to privatization. In the case of Škoda Automobile, the state authorities brought in a strong foreign partner. The tender for privatization was announced in 1990; 24 different companies were registered for the tender, while only eight of them expressed a serious interest – BMW, GM, Renault, Volvo, Volkswagen, Ford, Fiat, and Mercedes-Benz. In August 1990, VW and Renault were on the shortlist. Renault first offered to terminate Favorit production and replace it with the outdated Renault 18 derivative and new Renault Twingo, which would have eliminated the Škoda brand. This offer was declined and Renault prepared a new one. They offered a 60:40 joint venture (40% share of Renault), while Škoda Favorit production was to be retained and produced side by side with the Renault 19, and producing engine units, gearboxes, and other components for Renault. Total investment would have been US$2.6 billion (US$ billion in 2019). Volkswagen offered to continue Favorit production and preserve the Škoda brand, including retention of research and development. Volkswagen offered a purchase of 30% Škoda share, gradually increasing to 70%. Volkswagen's total investment would have been US$6.6 billion (US$ billion in 2019) by 2000. The government inclined on the Renault side, while the Škoda trade union preferred VW, because it offered significantly larger potential for development of the company. Volkswagen was chosen by the Czech government on 9 December 1990, and as a result, on 28 March 1991 a joint-venture partnership agreement with Volkswagen took place, marked by the transfer of a 30% share to the Volkswagen Group on 16 April 1991, raised later on 19 December 1994 to 60.3% and the year after, on 11 December 1995, to 70% of its shares, with the aim of making VW the largest and controlling shareholder of Škoda. On 30 May 2000, Volkswagen AG bought the remaining 30% of the company, thus making Škoda Auto a wholly owned subsidiary of the group. Backed by Volkswagen Group expertise and investments, the design – both style and engineering – has improved greatly. The 1994 model Felicia was effectively a reskin of the Favorit, but quality and equipment improvements helped, and in the Czech Republic, the car was perceived as good value for money and became popular. Sales improved across