Current Ford Ka is manufactured in Valencia

For best costs of manufacturing and greater proximity to the markets of Central Europe, automakers there have multiplied facilities sites in recent years. Note that, despite the rise in foreseeable level of life, the hourly cost in the region remains very favourable in 2009: 6.4 euros per hour in Hungary and Czech Republic, in Poland 5.3 and 4.7 in Slovakia against 23.4 average in the euro area (1).

Transfers to the East

PSA, Toyota, Hyundai/Kia joined the historical actors are Fiat Poland and Volkswagen with Skoda in Czech Republic. Over the waves of investment, it moves gradually eastward, from the Czech Republic to the Slovakia. At the same time, Fiat has consolidated its Polish operations, while the Volkswagen Group relies, in the region, the North Pole Skoda West and its near site of Bratislava in the East. The production, which was formerly concentrated around a single manufacturer by country, Skoda in the Czech Republic, Poland, Volkswagen in Slovakia Fiat, is now divided between several groups in each country.

In 2003, the automotive industry accounted for 15 of the total of manufacturing activities in Czech Republic, Hungary and Slovakia. This region of Europe has replaced the Spain in the role of the region offering the best cost of production. Even though GM recently decided to produce the Meriva 2 alongside the new Corsa in Zaragoza, the Spain gradually loses its attractiveness. Thus, in a joint project with Fiat, the second generation Ford Ka will be produced in the Polish factory of the transalpine constructor from 2008. Current Ford Ka is manufactured in Valencia. In 2005, production of vehicles in Spain lost 310,000 units distributed very also between manufacturers: 50,000 in VW-Seat, 55,000 in PSA, 90,000 in Renault, Ford 80,000 and 37,000 GM. In 2005, the Spain has produced 2.325.000 vehicles.

With the notable exception of terrain Volkswagen and Audi and Skoda range across most of the cars manufactured in Central Europe are low range. No wonder, because the combination of new manufacturing sites incorporating best practices and lower labor costs to produce moins expensive than in Western Europe. A critical parameter on entry-level cars. It is the small Toyota PSA Kolin, but also the cars of platform 1 of PSA in Trnava in Slovakia.

It is also in this country and around the future site of Hyundai's Czech Republic that Kia has decided to establish (see pages 9 and 10).

Panorama of productions

-Volkswagen: The constructor produces vehicles since 1995 at the plant Devinska Nová Ves. It's Polo, but also the terrain Touareg, Audi Q7 and many elements intended for the Porsche Cayenne. Volkswagen sometimes used this site as a threat to reduce its West-European factories manufacturing costs. The Slovak plant has produced a few Seat Ibiza in 2004, but ceased year last because of the agreement between the unions and the direction of Seat in Martorell. The staff of the plant is very young, with an average age of 34 years. In 2005, VW produced 177.400 vehicles in this site and 370,000 gearboxes. The Group has two sites for the manufacture of components (axles, directions and gearboxes) Martin and Nitra (cables and power distribution). Volkswagen also manufactures the Audi TT and engines in Hungary in Györ. In Poland, the site of Poznan (capacity: 150,000 units) assembles commercial vehicles. In Czech Republic, Skoda plants produce the range of the Czech constructor, engines and gearboxes for other applications in the group.

-PSA Peugeot Citroën: The group is coming to Trnava, 50 km northeast of Bratislava, in the immediate vicinity of the E75 highway. The first tranche of this site (invested EUR 700 million) will launch production of the 207 series next month. The 207 y will be produced in its two current variants of Fund: three and five door. The first tranche of the site will be able to produce 300,000 vehicles from platform 1 of the group. The second part of PSA Trnava investment will produce 150,000 units per year from 2010. It will be also a vehicle based on the Platform 1. This second tranche subject investment of 350 million euros.

The Trnava site includes industrial park providers where Faurecia, Inergy, Sofitec, Streit, Valeo and Gefco have settled. Generously sized with 40 ha, the Trnava PIF can accommodate all the bodies of business of the automotive industry and services. The direction of the purchases of PSA plays a role of interface between the OEMs and the two actors are the developer of the Park and the local authorities.

-Fiat: Is launching the production of the Cinquecento in 1992, Fiat has clearly placed the Polish site of Tychy in its industrial device European. The manufacturer has produced 286.000 cars in 2005. As of 2008, the site will manufacture the 500, derived from the concept car presented three years ago, and the new generation of Ford Ka.

The transalpine group has also a site of Bielsko-Biala engines which makes 1.3 JTD engines. The site is still a common operation between Fiat Powertrain and GM Powertrain.

-General Motors: The Group has a site in Gliwice, which produces of Opel Agila, as well as the older generation of Opel Astra. In 2005, the plant manufactured 116.500 vehicles.

-Suzuki: The nippon manufactures cars to Esztergom in the North of the Hungary near the Slovak border. The Japanese brand is established since 1992. The plant produces WagonR , the SX- 4 Swift Fiat Sedici. Production 2005: 135.900 vehicles, an increase of 40.

-Toyota: The nippon has industrial sites in Poland and Czech Republic. In the latter case, it is TPCA in Kolin, in partnership with PSA. In its first year, the site produced 169.000 vehicles and plans to use at full capacity in 2006. Toyota has also two sites for the production of bodies in Poland. The first is in Walbrzych. It manufactures, since April 2002, boxes of speeds, for 1.0 to 1.8 litre petrol engines and motors essence of cars assembled at Kolin in TPCA. This site produced 340,000 boxes and 100,000 engines in 2005. The installed capacity is 250,000 engines and 550,000 gearboxes. The second site is located in Jelcz-Laskowice. Since March 2005, it manufactures diesel D4 - D engines. Its annual capacity is 180.000 units with 1,000 people.

(1) A quick calculation on the basis of a production site employing 2,000 people gives an annual salary difference close to EUR 55 million. What, on a production of 200,000 cars per year, results in a cost per vehicle reduced from 280 euros.