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CENTRAL EUROPE AUTOMOTIVE REPORT™, and Designers BULGARIA CIS CZECH REPUBLIC HUNGARY CENTRAL POLAND ROMANIA RUSSIA SLOVAK REPUBLIC SLOVENIA EUROPE The Source For Automotive Information On Central Europe™ AUTOMOTIVE February 1998 On The Web at http://www.cear.com™ ™ REPORT Volume III, Issue 2 ISSN 1088-1123 over 26% compared to the same period a 1997 Automotive Regional Market year earlier. The figures, released by Highlights SAMAR, show that local production Executive of the Year accounted for 306,384 units, and imports Summary totaled 134,532 units. CEAR™ Congatulates its 1997 Central Europe Automotive • New Cars Sales in Poland Up 26% Fiat was the best selling brand, capturing a Executive of the Year: • Skoda Gets ISO 9001 Certification market share of 35.09%. Daewoo held • Suzuki Hungary Expands Production strong at the number two position with a Capacity market share of 25.72%. GM-Opel was the Daewoo Group • Dacia and Hyundai Sign Licensing third best selling brand with a market share Chairman Agreement of 9.33%. • New CEO at Daewoo Automobile Kim Woo-Choong Romania J.T. Granatelli Lubricants Signs • Timken Buys Romanian Bearing Distribution Agreement For Central & This year’s “CEAR™ Central Europe Manufacturer Eastern Europe Automotive Execu- tive of the Year” Poland On December 18, 1997, J.T. award is presented to Granatelli Lubricants, Inc. Daewoo Group reported that it entered into a Chairman Kim Woo- New Car Sales Grow By 26% material exclusive licensing Choong. The arrangement and purchase agree- CEAR™ chooses During the first 11 months of 1997, new car ment with Union Construction Chairman Kim to sales in Poland totaled 440,916 units, up Enterprise, Inc. The agreement receive this award has an estimated value of $28.8 because of his Inside million over a ten year period. dynamic leadership and active involve- Feature Country: Hungary Pursuant to the agreement, Union is ment in Daewoo’s granted exclusive marketing and massive investment distribution rights for Lithuania, program for the • CEAR™ Exclusive Interview With Daewoo Central European Poland, Belarus, and Kaliningrad. Chairman Group Chairman Kim Woo-Choong: p. 13 automotive industry. The agreement calls for certain Kim Woo-Choong • Product Review - Corrosion Inhibitors: p. 22 “take-or-pay” provisions, including • Hungary’s New Company Act: p. 6 Under the guidance the posting of a performance bond by • Analysis: Russian Car & Components of Chairman Kim, Daewoo’s strategic Union in the sum of the aggregate product assault on Central Europe has had a Industry: p. 14 to be purchased under the agreement. profound impact on the competitive • R&D Assistance in Hungary: p. 24 dynamics of the region’s auto sector. The • Romanian Production & Sales Statistics: p. 9 “This agreement with Union is a culmina- boldness and sheer magnitude of Daewoo’s • Corporate Tax Changes in Hungary: p. 15 tion of eighteen months of test marketing attack surprised many and has forced • Poland Car Statistics: pp. 7, 20 throughout Poland, Belarus, Kaliningrad, competitors to speed up and bolster their and Lithuania,” said Harry Hibler, President • Hungarian Supplier List: p. 21 own activities in Central Europe. of J.T. Granatelli. “Union’s preliminary • Extra Info for Email Subscribers: pp. 25, 26 Continued on Page 2 Continued on Page 12 Place Your Ad Here. Includes a direct link to your email address or web site. Easy as a mouse click. [email protected] CEAR.COM ™ Highlights Continued from Page 1 CENTRAL markets. EUROPE marketing efforts have been extremely Hungary AUTOMOTIVE well received within those regions, and REPORT™ are further evidenced by Union’s firm Suzuki Expanding Capacity commitment to continue to develop and February 1998 grow those emerging markets for [our] Magyar Suzuki plans to expand its Volume III, Issue 2 product line.” ISSN 1088-1123 yearly production capacity to 70,000 vehicles from the current capacity of J.T. Granatelli Lubricants, Inc. manufac- 50,000 vehicles. Estimated produc- tures, markets, sells, and distributes its tion for 1997 is 60,000 vehicles, proprietary line of motor oil, general which was achieved through over- household and motor vehicle lubricants, time production, Saturday operation, and contiguous products worldwide. and other methods. Czech Republic Suzuki currently produces the Swift model at its factory in Esztergom, Ronald F. Suponcic, Jr. Jeffrey A. Jones, Esq. Skoda Auto Receives ISO 9001 Hungary. Car production at the plant Publisher Editor-in-Chief Certification; New Engineering Center began in October, 1992. Editorial Assistant Under Construction Barbora Grossmannova Romania On December 15, 1997, Skoda Auto a.s. Research Assistant received ISO 9001 certification. The Katarina Trginova Dacia & Hyundai Enter Into German auditing company RW TUV Licensing Agreement Design Essen confirmed the quality of all Big Sky Creative processes at the company, from automo- Caroline Bond Troubled Romanian carmaker Dacia [email protected] bile engineering through purchasing, has entered into an agreement with production, and sales. Skoda also Hyundai. Pursuant to the agree- Web Site Design supplies components to various plants of Big Sky Creative ment, Dacia will assemble 50,000 Ron St Clair other VW Group subsidiaries. Skoda’s Accent models, as well as 100,000 [email protected] Vrchlabi plant achieved the best quality in Hyundai engines per annum. Ac- the entire VW Group in the third quarter Reporters cording to company sources, Dacia Catalin Dimofte, Bucharest of this year. should start assembling the Hyundai Magda Sowinska, Warsaw Accent in 1999. The standard model Valerie Dumas, Budapest In December 1997, the foundation stone Bostjan Okorn, Ljubljana should sell in Romania for $8,000, was laid for Skoda’s new engineering jeopardizing Daewoo’s domestic February Columnists center in Mlada Boleslav. The Czech Andrea E. Villanyi, Strikeman Elliot market share. Dr. Erzsebet Szilagyi, Reti & Antall Crown 200 million ($6 million) invest- Denes Szabo, Ernst & Young ment will provide new workplaces New CEO at Daewoo totalling 3,800 sq.m. for 160 engineers The CENTRAL EUROPE AUTOMOTIVE REPORT™, and designers. Skoda’s engineering staff 4800 Baseline Rd., Suite E104-340, Boulder, CO 80303, In January, Daewoo Automobile USA, is published monthly, except August, by Central has increased to a total of 1000. Romania will have a new CEO. European Trade & Marketing, L.L.C. in Boulder, Colorado. Former CEO Dong-Kyu Park returns According to plans agreed to with the to the corporate headquarters in The entire contents of this magazine in print and elec- VW Group, Skoda will double production Seoul, Korea, while Oh Joon Kwoon tronic formats are copyrighted 1998 by Central to 500,000 automobiles per year by the European Trade & Marketing, L.L.C. with all rights re- will take over in Craiova. served. Reproduction or use in any form, without per- end of the century. mission, is prohibited. Annual subscriptions are Mr. Kwoon is considered a high flier USD$500 for the Standard Print and Email Edition, Daewoo Avia Increases Production & within the Korean chaebol, where he USD$900 for the Analyst Edition, and USD$1,850 for Sales the AutoNewsFast™ Edition. has worked since 1972. He previ- ously held important positions in Offices in Central Europe and the United States During the first 11 months of 1997, Daewoo’s overseas operations, Business, Editorial, Subscription, Advertising, Daewoo Avia produced 4,826 units of and Market Research Inquiries to: including chairman of Daewoo Avia vehicles and 876 units of vehicles Heavy Industries branches in Japan CENTRAL EUROPE AUTOMOTIVE REPORT™ from Daewoo’s Lublin plant in Poland. and the US. 4800 Baseline Rd., Suite E104-340 In 1996, Avia vehicle production totaled Boulder, CO 80303 USA Tel: +1-440-843-9658 Fax: +1-206-374-5282 4,448 units. For all of 1997, the company Email: [email protected] expects to sell 5,500 Avia vehicles, with More Market Highlights 2,800 of those units destined for export on Page 4 2 February 1998 • CENTRAL EUROPE AUTOMOTIVE REPORT™ http://www.cear.com™ © Central European Trade & Marketing, L.L.C. 1998 CENTRAL EUROPE AUTOMOTIVE REPORT™ EDITORIAL CALENDAR The Source For Automotive Information On Central Europe On The Web at http://www.cear.com 1998 Issue Feature Automotive Reviews Special Reports Ad Close Date Jan 98 Poland Body/Chassis 1997 Year in Review/ Dec 10, 1997 1998 Forecast Feb 98 Hungary Central Europe’s na Jan 10, 1998 Executive of the Year Mar 98 Czech Republic Components & Systems Auto Aftermarket Feb 10, 1998 Apr 98 Slovak Republic Marketing & Advertising na Mar 10, 1998 May 98 Romania/Bulgaria Electronics Auto Consultants Apr 10, 1998 Jun 98 Poland/Slovenia OEM Special: Who Supplies Who na May 10, 1998 Jul 98 Hungary Powertrain Exporting to Jun 10, 1998 Central Europe Aug 98 Not Published Sep 98 Czech Republic Plastics Auto Engineering Aug 10, 1998 Oct 98 Slovak Republic Logistics Human Resources Sep 10, 1998 Nov 98 Romania/Bulgaria Interiors Real Estate Oct 10, 1998 Dec 98 Poland/Slovenia Financing na Nov 10, 1998 Regular Monthly Columns Feature Country - featured country market overview and news, plus updates from around the region Profile Interview - interviews with regional automotive executives Product News - information on new products, components, and vehicles in the market Opportunity Spotlight - regional companies offering investment, joint venture, or partnership opportunities Legal Advisor - updates on legislation and legal matters pertaining to the automotive industry Focus On Investment - investment analysis of regional automotive related companies Accounting & Finance - updates on accounting, tax, and customs changes pertaining to the automotive industry To Subscribe or Place an Advertisement Tel: +1- 440-843-9658 Fax: +1- 206-374-5282 Email: [email protected] Highlights Continued from Page 2 International “As with other acquisitions, we will be working to strengthen Rulmenti Grei by Visteon Appoints Vice President Of The Romanian media reported that the introducing advanced technology and New Market Development change was triggered by the low domes- manufacturing processes,” said Robert L.
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