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June 1998 CEAR BULGARIA CIS CZECH REPUBLIC HUNGARY CENTRAL POLAND ROMANIA RUSSIA SLOVAK REPUBLIC SLOVENIA Since 1996 EUROPE The Source For Automotive Information On Central Europe™ AUTOMOTIVE June 1998 REPORT™ On The Web at http://www.cear.com™ Volume III, Issue 6 ISSN 1088-1123 Regional Market Poland Profile Ford Bank Financing Highlights Standard Products Building In Poland Summary The Standard Products Co. announced in Polish Consumers’ late April that it plans to start producing Thirst for Cars • Standard Products Building in Poland automotive sealing products in Poland by • Hyundai Polish Factory Proposal the end of 1998. The company has Submitted established a subsidiary in Poland and has Car financing in Poland is a fast growing • Cornerstone Laid for $450 million acquired land and a partially completed market, and Ford Bank Polska is racing Daewoo Truck Factory in Poland building in the Polish city of Bielsko-Biala. to keep up with it. The percentage of new • Skoda Auto Sales up 27%; Awards vehicle sales involving financing has Best Suppliers The 55,000 square foot plant will supply jumped from about 35% in 1995 to some • Finally: Czech Government to Offer sealing products for all Palio vehicles 60% in 1997. Investment Incentives assembled in Fiat’s facilities in • Suzuki Hungary May Invest in More Bielsko-Biala, Poland. Standard Financing companies Capacity Products intends to expand its such as Ford Bank • GM To Build $130 Transmission presence in Poland in the future Polska must contend Facility in Hungary; Astra Phased Out as customer demand increases. with a non-existent • Big Car Sales Jump in Hungary credit checking system, • VW/Siemens Cabling Systems JV in “The expansion of our strict Polish banking Slovakia Boosting Production production capabilities into regulations, and tough • Revoz/Renault Replacing Clio with Poland fits perfectly with our price competition from Clio II Production global strategy,” said Theodore local deposit banks. K. Zampetis, Standard Products In This Issue president and chief operating Ford Bank Polska officer. “Poland is a low-cost started operations in Feature Country: Poland producing country located in the Poland in September • Who Supplies Whom?: p. 5 midst of the emerging East 1997 when it was • Optimize Exports to Poland: p. 6 European market.” • Intellectual Capital — Increasing awarded a banking Competitiveness: p. 9 The Poland plant will be the fifth Dr. Olaf Neitzsch license and • Poland’s Economic Zones: p. 10 new automotive sealing plant operational approval • Today’s Quality Expectations: p. 11 Standard Products has added in by the National Bank • IPP Project Funds Russian R&D for the past five years. Since 1993, the of Poland. The new bank, a subsidiary of Auto Companies: p. 14 company has opened new plants in the Ford Credit Europe, specializes in • Tax Benefits Offered in Poland’s U.S., Brazil, and Mexico and is currently offering financing for new and used Special Economic Zones: p. 15 constructing a new factory in France that vehicles through Ford dealerships. • Investment Opportunities: p. 17 • Distribution of Asian Brands in will replace an older facility. Central & Eastern Europe: p. 20 Dr Olaf Neitzsch is president of Ford Bank • Hungarian Supplier List: p. 21 Standard Products manufactures sealing, Polska S.A. Dr. Neitzsch has worked in • New Reverse Flow Catalytic trim, and vibration control systems for the Poland for over three years. Prior to his Converter Cuts Emissions: p. 22 automotive original equipment industry in current position with Ford Bank, he was • Daewoo Slovakia Builds New Distribution & Service Center: p. 24 Continued on Page 2 Continued on Page 12 Visit the CEAR Central Europe Automotive Forum™ at http://www.cear.com/autoforum or click here CEAR.COM ™ Highlights Continued from Page 1 CENTRAL producing Korean cars was laid on April 30 at Daewoo Motor Polska EUROPE North and South America and Europe. in Lublin. The planned outlays to AUTOMOTIVE start up production of delivery REPORT™ Hyundai Factory in Starachowice vehicles in the new factory amount to $450 million. Of this, $150 June 1998 According to Sobieslaw Zasada million will be spent on research and Volume III, Issue 6, ISSN 1088-1123 Centrum (SZC), the annexes to an development work, and the rest on agreement for the production of Hyundai other investments. cars in Poland were sent to the Ministry of the Economy on April 28. The In October 1997, Daewoo Motor documents contain a declaration on the Poland bought 23 hectares of land construction of a welding and paint shop, next to its current facility. New halls the scope of “Polonization” of the cars in for a welding shop, paint shop, and successive years (i.e. increasing the final-assembly facility for the LD- amount of Polish produced parts), and 100 delivery vehicle will be built by planned outlays together with an 2000. The total built-over area will Ronald F. Suponcic, Jr. Jeffrey A. Jones, Esq. investment schedule. be 93,220 sq. meters. Publisher Editor-in-Chief SZC has agreed with Hyundai that the The LD-100 is a new-generation Editorial Assistant factory will be located in Starachowice in delivery vehicle with a total mass of Barbora Grossmannova a special economic zone. According to up to 3.5 tons, designed by Daewoo Research Assistant Marcin Trzaska, SZC press spokesman, to replace the current Lublin II. The Katarina Trginova from the moment the final agreement is LD-100 was designed from scratch signed, the factory, which will be housed and the technical documentation Design Big Sky Creative in a hall already owned by SZC, will be prepared at the Daewoo Worthing Caroline Bond, started up within 18 months. The cost of Technical Center in the UK by a [email protected] the project is estimated at about DM 120 team of engineers, designers, and million ($66 million). The Ministry of the managers from England, Korea, and Web Site Design Big Sky Creative Economy has until May 28 to approve Poland. The Polish group includes Ron St Clair the annexes. 150 engineers, 15 of whom work [email protected] permanently in England. Eaton in Tczew? Reporters Catalin Dimofte, Bucharest The LD-100 van has a load capacity Magda Sowinska, Warsaw The Polish press has been speculating from 1 to 1.8 tons, and versions Pavol Varga, Bratislava about negotiations between the Car offering two axle bases and three Bostjan Okorn, Ljubljana Transmission Factory in Tczew, roof heights will be available. The Columnists Poland’s main manufacturer of gearboxes basic LD-100 family also includes, Ray Barker, Avon Rubber for trucks, and Eaton Corp. As part of apart from a van, 8-15 person Dr. Johan Roos, Intl. Istit. for Management composition proceedings, the factory was microbuses, as well as chassis for Development taken over by Sobieslaw Zasada single or double cabs. Available The CENTRAL EUROPE AUTOMOTIVE REPORT™, Centrum (SZC) in 1995. engines include two turbo-charged 4800 Baseline Rd., Suite E104-340, Boulder, CO direct injection diesel engines, with 80303, USA, is published monthly, except August, by Central European Trade & Marketing, L.L.C. in Boulder, Speaking with the CEAR, Ryszard 90 hp and 100 hp. The engines will Colorado. Bartnik, chairman of the board at the be compatible with ECE regulations Tczew factory, denied the rumors. on exhaust purity. The entire contents of this magazine in print and However, Marcin Trzaska, press electronic formats are copyrighted 1998 by Central European Trade & Marketing, L.L.C. with all rights spokesman for SZC, confirmed that Daewoo plans to cooperate with over reserved. Reproduction or use in any form, without Tczew is holding commercial and 100 component manufacturers, permission, is prohibited. Annual subscriptions are technological talks with Eaton. including 20 top foreign companies, USD$500 for the Standard Print and Email Edition and some of which have declared their USD$900 for the Analyst Edition. “Yes, Eaton representatives did visit us,” plans to invest in Poland. Business, Editorial, Subscription, Advertising, said Trzaska. “Certain talks are being Market Research, Delivery Problem Inquiries to: held on cooperation and on the possible The project will create about 30,000 CENTRAL EUROPE AUTOMOTIVE REPORT™ purchase of a license from that new jobs in all the companies Business and Circulation Office company.” involved, including the future 4800 Baseline Rd., Suite E104-340 suppliers of over 15,000 parts and Boulder, CO 80303 USA New Daewoo Delivery Vehicle Factory components. Tel: +1-440-843-9658 Fax: +1-206-374-5282 Under Construction Email: [email protected] More Market Highlights Bratislava • Bucharest • Budapest • Cleveland The cornerstone for a new factory Ljubljana • Prague • Warsaw on Page 4 2 June 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 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
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