07 August 2011

Car Production Czech/Slovak: 2010

Czechoslovakia existed from 1918 until 1992. On 1 January 1993 it peacefully formed into two independent countries, the Czech and Slovak Republics. They both have grown as car makers of late so let us see how they are doing.

First the Czech part. Skoda was the only car marque being made in the Czech Rep for many years. It is the national brand, now part of the VW Group. The association is working quite well for this Central European car maker. Skoda production was around the 450,000 units per annum in the early part of of the new century, before peaking at 620,000 in 2007. Then in 2005 a joint venture factory between Peugeot, Citroen and Toyota started producing vehicles. This was followed by a new Hyundai plant in 2008. These new brands have more than made up for Skoda's modest production decline since '07. 2010 production figures are below:

1 Skoda 575,000
2 Hyundai 200,000
3 Peugeot 110,000
4 Citroen 100,000
5 Toyota 85,000

Total 1,070,000

Now for Slovakia. For such a small country, it has a wide variety of brands making up car manufacturing industry. VW was the only company in 2001, when 90,000 cars rolled off the assembly lines that year. VW production peaked in 2005 with 170,000 cars, but declined since. No matter as new arrivals came in 2006 in the form of Peugeot, Kia and Audi (Citroen also started in 2009). For the current situation for 2010:

1 Kia 230,000
2 Peugeot 100,000
3 Citroen 75,000
4 VW 57,500
5 Audi 47,500
6 Skoda 40,000

Total 550,000

In summary: Both countries are doing well enticing investment from auto makers. Lower wages are a big factor, as is their close proximity to major markets in Europe.

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