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Very cool video! I also love Eastern European cars. And these 2 are among the flashier ones (after ZIL, Volgas and Tatras).Maybe the guy was saying it as a joke, but as far as I know the Skoda name is not a made-up word but just the family name of the company's founder, Emil Škoda. According to his article in Wikipedia, Emil's parents were called Škoda too, so the idea that he invented a name to hide a German origin (of which I have also found no proof, himself being born in Pilsen) sounds baseless.
About origin of Škoda name, I think he mean it! (anyway, sometimes it's hard to know when German says a joke and when he mean it hehe). As Ripituc said, Škoda is surname of founders.. and it's quiety common surname till today (and yes, škoda also means "shame, what a pity" in czech). This is just one of many "2 version stories" between Germans and Czechs.
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