Škoda Auto a.s. (), often shortened to Škoda, is a Czech automobile manufacturer established in 1925 as the successor to Laurin & Klement and headquartered in Mladá Boleslav, Czech Republic. Škoda Works became state owned in 1948. After 1991, it was gradually privatized to the German Volkswagen Group, becoming a partial subsidiary in 1994 and a wholly owned subsidiary in 2000. Škoda automobiles are sold in over 100 countries, and in 2018, total global sales reached 1.25 million units, an increase of 4.4% from the previous year. The operating profit was €1.6 billion in 2017, an increase of 34.6% over the previous year. As of 2017, Škoda's profit margin was the second-highest of all Volkswagen AG brands after Porsche. History The Škoda Works was established as an arms manufacturer in 1859. It was one of the largest European industrial conglomerates of the 20th century, founded by Czech engineer Emil Škoda in 1859 in Plzeň, then in the Kingdom of Bohemia, Austrian Empire. It is the predecessor of today's Škoda Auto, Doosan Škoda Power and Škoda Transportation companies. Škoda Auto (and its predecessor Laurin & Klement) is the fifth-oldest company producing cars, and has an unbroken history alongside Daimler, Opel, Peugeot, and Tatra. Laurin & Klement As with many long-established car manufacturers, the company that became Škoda Auto started in the early 1890s by manufacturing bicycles. Škoda (then Laurin & Klement) factories were founded in 1896 as a velocipede manufacturer. In , 26-year-old Václav Klement (1868–1938), who was a bookseller in Mladá Boleslav, Kingdom of Bohemia (today's Czech Republic, then part of Austria-Hungary), was unable to obtain spare parts to repair his German bicycle. Klement returned his bicycle to the manufacturers, Seidel and Naumann, with a letter, in Czech, asking them to carry out repairs, only to receive a reply, in German, stating: "If you want us to answer you, we insist that you convey your message in a language we understand." Not satisfied with the reply and realising the business potential, Klement, despite having no technical experience, decided to start a bicycle repair shop, which Václav Laurin and he opened in 1896 in Mladá Boleslav. Before going into partnership with Klement, Laurin was an established bicycle manufacturer in the nearby town of Turnov. In 1898, after moving to their newly built factory, the pair bought a Werner "Motocyclette". Laurin & Klement's first motorcyclette, powered by an engine mounted on the