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CENTRAL EUROPE AUTOMOTIVE REPORT™ © Central European Trade & Marketing, L.L.C BULGARIA CZECH REPUBLIC HUNGARY POLAND CENTRAL ROMANIA SLOVAK REPUBLIC SLOVENIA EUROPE The Source For Automotive Information On Central Europe™ AUTOMOTIVE November 1997 On The Web at ™ http://www.cear.com™ REPORT Volume II, Issue 10 ISSN 1088-1123 Regional Market Sobieslaw Zasada Centrum, which will enable C Hungary Hyundai to assemble cars in Poland without E Highlights paying the 35% import tax. According to PROFILE Hyundai, the assembled cars will all be sold in A MMG’s Managing Director On Summary Poland. Assembly operations are scheduled to Hungary’s Engineering Tradition, begin in December, with production this year R Strategic Partners, and Cost Cutting ❍ Hyundai to Assemble Cars in Poland expected to reach 1,000 units, and rise to 10,000 ❍ GKN Starts Construction of New Factory in units in 1998. Suppliers in Central Europe need strategic part- Poland ners to stay alive in today’s global automotive ❍ Ford Bank Polska Begins Operations GKN Automotive Polska Begins Building industry. And this is true for even the big compa- ❍ 100,000th Opel Sold in Poland New Factory nies like Hungary’s MMG Automatika Muvek Rt. ❍ NABI’s Bus Production Increases in Hungary In September, GKN Automotive Polska started Founded in 1900, ❍ Sales of Lower Middle Segment Cars Up in constructing its new $32 million facility in MMG is the oldest Czech Republic Olesnica, Poland. The new manufacturing plant and largest instru- ❍ Autoliv Increases its Share in Romanian and offices will cover approximately 10,000 ment manufacturer Joint Venture square meters and are expected to be completed in Hungary. Auto- ❍ Tenneco Names New Central & Eastern by mid 1998. In the third quarter of 1998, the motive products Europe Business Development Chief transfer of the manufacturing team and equipment represent about from the existing Twardogora, Poland location 30-35% of the com- Poland will take place. GKN currently operates out of pany’s total sales, space leased from Fiat Automotive Poland. and its two main Poland Gets Yet Another Car Assembler — customers are Hyundai The new plant will manufacture driveline and Russian carmaker power transmission products, including constant Tamas Borai Lada (AutoVaz) and Hyundai Motor Corporation formed a joint velocity joints and half shafts, for supply to cus- Suzuki’s plant in Hungary, Magyar Suzuki. venture in late September with Polish car maker tomers within Poland, including Fiat, and for export as required. MMG is 50.1% owned by its employees under an employee stock ownership plan. Minority shares Inside Initial production is planned at 300,000 vehicle in the company are owned by local communities sets, and increasing to 500,000 vehicle sets in in which MMG has plants, offices, or other real Feature Country HUNGARY the near future. GKN Automotive Polska cur- estate. Over 2,300 MMG employees work in 4 ✓ Hungary’s New Advertising Regulations: p. 4 rently employs 210 people. manufacturing plants in and outside of Budapest. ✓ Daewoo-FSO Shifting Gears in Poland: p. 9 Ford Bank Polska Awarded License When the last phase of privatization was completed ✓ Regional Special Report — Industrial Real Estate: p. 10 in 1994, MMG’s sales were HUF 3.9 billion. Last ✓ EC’s Automotive Sector Strategy: p. 11 In September, Ford Bank Polska S.A. was year sales grew to HUF 7.5 billion, and this year ✓ Hella Markets Hungary: p. 14 awarded a banking license and operational expects sales to rise to HUF 9 billion ($46 million). ✓ Hungarian Supplier List: p. 16 approval by the National Bank of Poland. The ✓ Poland Car & CV Sales Statistics: p. 15 & 21 Warsaw-based bank will be supervised by the Tamas Borai is Managing Director of MMG, and ✓ Analysis of Hungary’s Leasing Regulations: p. 20 National Bank of Poland. has held this position since 1994. He joined the ✓ Quotes From Warsaw Supplier Conference: p. 22 Continued on page 2 Continued on page 12 CENTRAL Highlights Continued From page 1 August, 334,412 new cars were sold in Poland, EUROPE compared to 259,937 units sold during the The new bank, a subsidiary of Ford Credit same period in 1996. Out of all Western AUTOMOTIVE Europe plc, will specialize in offering financ- European countries, Poland ranked third in new REPORT™ ing for new and used vehicles through Ford sales growth, behind Italy (34.95%) and dealerships. Dealers will act as representatives Sweden (28.85%). of the bank and will be responsible for November 1997 informing potential customers about the bank Fiat led the pack with sales of 116,076 units Volume II, Issue 10 offers and conditions. and a market share of 34.71%. Fiat’s market On The Web at share during this period last year was 42.10%. http://www.cear.com™ Dr. Olaf Neitzsch has been appointed President Fiat is being chased by Daewoo, who saw its of Ford Bank Polska. For the past two years he sales volume rise during the first eight months Publisher has run Ford Credit Poland S.A. to 85,636 units, up from 60,170 units during Ronald F. Suponcic, Jr. the same period in 1996. Daewoo’s market email: [email protected] Opel Sales in Poland Top 100,000 Units; share grew from 23.15% to 25.61%. GM/Opel Second Shift Added for Astra Production took the third position with sales of 30,980 Editor-in-Chief units and a market share of 9.26%. Jeffrey A. Jones, Esq. In September, GM Poland sold the 100,000th email: [email protected] Opel car on the Polish market since the estab- Commercial vehicle sales in Poland were up Editorial Assistant lishment of the company in May 1991. Sales of 14.13% during the first eight months of 1997. Barbora Grossmannova Opel passenger cars and light commercial vehi- During this period, 33,938 units were sold, cles in Poland have grown from 2,100 units in with 26,574 of these vehicles produced by local Research Assistant Katarina Trginova 1991 to 36,000 units during the first nine manufacturers. Sales of imported commercial months of 1997. Opel’s market share in Poland vehicles totaled 7,364 units, up 52.02%. (for Design is about 10%. more detailed statistics on vehicle sales in Teresa Freeman Poland, see charts on page 7) email: [email protected] In September, GM Poland also assembled the Webmaster 25,000th Astra in Warsaw since the start of pro- Hungary Gary J. Gustafson duction in November 1994. Because of high email: [email protected] demand, a second shift will be added to the Linamar Projects Turnover for ‘97 Warsaw plant in November, increasing capacity Reporters to 24,000 units annually. Air pump manufacturer Mezogep Linamar Catalin Dimofte, Bucharest Magda Sowinska, Warsaw expects turnover for 1997 to reach $13 million. Valerie Dumas, Budapest Daewoo Tico-100 and Engine Production in During 1997, Linamar invested over $1.5 million Poland into its Polish facility. The existing plant covers CENTRAL EUROPE AUTOMOTIVE 3,200 sq. meters, and the company plans to REPORT™, 4800 Baseline Rd., Suite Daewoo has announced that by the end of this expand this by 6,000 sq. meters to accommodate E104-340, Boulder, CO 80303 USA, is year, Tico-100 production will begin in Zeran, new business. Linamar’s new customers include published monthly, except August, by and that in the future the plant will also produce Steyr-Daimler-Puch, Transgear, and ZF. Central European Trade & Marketing, 1200cc engines for the Tico’s successor and a L.L.C. in Boulder, Colorado. 1900 cc diesel engine for the Polonez truck. (for Mezogep Linamar is 60% owned by Linamar more on Daewoo FSO, see article on page 9) Corp. of Canada The entire contents of this magazine are copyrighted 1997 by Central European Trade & Marketing, L.L.C. Volvo Trucks Ply Polish Highways NABI’s Bus Production Increasing with all rights reserved. Reproduction or use in any form, without permission is According to Volvo Truck Poland, recent fig- North American Bus Industries expects to prohibited. Annual subscriptions are ures put the number of Volvo trucks on sell 400 buses in 1997, up from 300 in 1996. US$250 for the CEAR™ Standard Poland’s highways at 6,000. Since January The company, a spin-off from the ailing bus- Edition, and US$450 for the CEAR™ 1995, Volvo has owned a truck factory in maker Ikarus, has found success selling its Analyst Edition. Wroclaw. Present production at the factory is heavy duty buses to cities in the U.S. NABI Offices in Central Europe and 1,500 trucks a year. In June, the 3,000th Volvo plans to expand its markets by focusing on cus- the United States truck was produced in Poland. tomers that use small, 20-30 foot buses. Business & Editorial Inquiries Turnover in 1996 was $77.8 million, and net New Car & Commercial Vehicle Sales income was $3.1 million. 4800 Baseline Rd., Suite E104-340 Robust During First Eight Months Boulder, CO 80303 USA Suzuki’s Half Year Sales Tel: +1 (440) 843-9658 For the first eight months of 1997, new car Fax: +1 (206) 374-5282 sales in Poland were up 28.65%, according to In the first half of 1997, Magyar Suzuki sold Email: [email protected] figures released by SAMAR. As of the end of 6,956 locally produced Swift models, and 18 2 November 1997 • CENTRAL EUROPE AUTOMOTIVE REPORT™ © Central European Trade & Marketing, L.L.C. 1997 Use of content without permission is strictly prohibited. All rights reserved. CENTRAL EUROPE AUTOMOTIVE REPORT™ CEAR™ SPONSORS Supporting the Development of the Automotive Industry in Central Europe CENTRAL CENTRAL EUROPE EUROPE AUTOMOTIVE AUTOMOTIVE REPORT™ REPORT™ Market Research Group Internet Services Group The CENTRAL EUROPE AUTOMOTIVE REPORT™ is made possible, in part, through the support of its Sponsors.
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