The South Korean Hyundai plant in Nošovice posted a net profit to the tune
of 6.69 billion crowns in 2017, a drop by 21 percent on the previous year,
according to the company yearly report released on Wednesday.
The car plant in north Moravia, which produced 356,700 vehicles last year, will downsize its production in 2018, due to a slowdown of orders on the European market.
The Czech auto sector, both cars and components, is booming. But the boom is not shared equally between the country’s biggest producers. While the biggest manufacturer, Škoda Auto, is hard pressed to keep up with demand, Hyundai saw production drop slightly last year and the trend is set to continue in 2018.
Employees of the second-biggest carmaker in the Czech Republic, Huyndai, will get a pay rise of around 12 percent, the company’s spokesman Petr Vaněk told the Czech News Agency on Tuesday. The deal is part of a collective agreement signed by the unions and representatives of the company’s management. Last year, blue collar workers in Hyundai made on average 34,500 crowns. The average wage in the Moravian-Silesian region, where the plant is located, was around 25,200 crowns last year.
Car production in the Czech Republic increased by eight percent in 2016 compared to the previous year to a record figure of 1.344 million cars, the president of the Automotive Industry Association Bohdan Wojnar announced at a press conference on Tuesday. Production increases were recorded by all three of the Czech Republic’s major car production companies.
City representatives in Ostrava have approved the signing of a deal for the sale of plots at Mošnov to South Korea’s Hyundai Mobis for 69 million crowns, where the firm plans to build a factory for the production of car headlights. The company will recover its investment through subsidies, the city’s mayor, Tomáš Macura, said. The contract is to be signed within a few days; production of the new plant could begin in the near future, the Czech News Agency said.
The Czech Republic’s car production could be record-high this year and is likely to exceed last year’s 1.24 million units produced, president of the Czech Automotive Industry Association, Martin Jahn, said at the Frankfurt Car Show on Wednesday. Mr Jahn said he expected all three local producers, Skoda, Hyundai and TPCA to increase their production. According to the most recent figures, the Czech Republic’s passenger car production increased by four percent during the first six months of this year to 850.172 cars produced.