After World War I the Laurin & Klement company began producing trucks, but in 1924, after running into problems and being affected by a fire on their premises, the company sought a new partner.

Meanwhile, “Akciová společnost, dříve Škodovy závody” (Limited Company, formerly the Škoda Works), an arms manufacturer and multi-sector concern in Pilsen which had become one of the largest industrial enterprises in Europe and the largest in Czechoslovakia, sought to enlarge its non-arms manufacturing base and acquired Laurin & Klement in 1925. It also started manufacturing cars in cooperation with Hispano-Suiza. Most of the later production took place under Škoda’s name.