The 60-second humorous ad, created by Fallon, shows a dark twist of the brand's popular "Made of lovely stuff" campaign in 2007, which featured an ad building a Fabia car made out of sponge cake.
It features the strapline, "Made of meaner stuff" and was filmed in Skoda's native Czech Republic. The ad opens with a shot of a television screen playing the original famous "Cake" ad, however it is turned off by a baker who throws an arrow at the off button.
As the story unfolds, the bakers are soon replaced to reveal a much tougher, darker and more technologically-enhanced production team who are creating the "meaner" Fabia vRS.
The ad launches today and will appear on terrestrial channels ITV, Channel 4 and Channel 5/Five in addition to digital and satellite channels.
The campaign also includes national, consumer lifestyle, sports and motoring print advertising as well as cinema advertising, PR, online, digital and social media activity.
Media planning and buying is being handled by MediaCom.
Skoda will also be focusing social media activity, developed by archibald ingall stretton, on channels including Facebook and YouTube.
Consumers will be encouraged through Facebook, to interact with the campaign by discovering whether they are "mean" or "lovely" to be in with a chance of winning a brand new Fabia or Fabia vRS.
They can also encourage their friends to vote on their "mean" or "lovely" status.
Users can actively explore the differing sides of the Fabia range and will find everything from jelly and lollipops on the lovely side to snakes and lightning on the mean side.
In addition, a purpose-built YouTube channel will be hosting the ad as well as some behind-the-scenes footage, which will be added throughout the duration of the campaign.
Chris Bovill, Fallon creative director, said: "We always said we'd never make a sequel to 'Cake' but when the vRS brief came along we thought we'd make an 'opposite'. 'Cake' made our mums smile, this should make them want to hide behind a cushion."
Heidi Cartledge, Skoda UK national communications manager, said: "This is one of our biggest campaigns ever in the UK, and designed to engage our brand with new audiences.
"The 'Made of Meaner Stuff' advert, combined with our wider campaign activity, will see Skoda reaching a new audience – the younger, cult 'hot hatch' demographic in addition to our mainstream and loyal customers."
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