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The turning point came in with the Favorit model.

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The Favorit's appearance was designed by Italian design company Bertone. With some motor technology licensed from western Europe, but still using the Skoda designed cc engine, Skoda engineers succeeded in designing a car comparable to western production.

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The technological gap was still there, but began closing rapidly. The Velvet Revolution brought great changes to Czechoslovakia and most industries were subject to privatisation. In the case of Skoda Automobile, the government brought in a strong foreign partner in the shape of Volkswagen and in April, , Skoda become the fourth brand of the Volkswagen Group.

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