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Central Europe Automotive Report™ BULGARIA CIS CZECH REPUBLIC HUNGARY CENTRAL POLAND ROMANIA RUSSIA SLOVAK REPUBLIC SLOVENIA EUROPE The Source For Automotive Information On Central Europe™ AUTOMOTIVE January 1998 On The Web at http://www.cear.com™ ™ REPORT Volume III, Issue 1 ISSN 1088-1123 Regional Market Operating out of its own facility, MERA Profile will use Delphi equipment for the assembly Poland operation and Delphi will handle all Highlights logistics. The assembly operation, which is Summary expected to start in mid-1998, will supply Delphi Conquers Poland: both domestic and export customers. • Clarion To Build New Factory in Four Factories Running, Hungary Poland’s Assembly Rules Changed Again Two More On The Way • Delphi Signs Contract With MERA Blonie In November, the Polish government In the words of Delphi Polands Country • Audi Hungary Producing V8 Engines amended an ordinance which affects SKD Director Leszek Waliszewski, the year 1997 • Ford Hungaria Setting Up Local assembly. The issue of assembly permits is was an explosion. The company Purchasing Unit limited to those entities already assembling purchased a majority interest in Polish • Skoda Production & Sales Up cars on an industrial scale in Poland, and strut and shock maker F. A. Krosno, started • Czech Republic Wants GM those companies are restricted from starting a greenfield steering component and • Goodyear and Sava Joint Ventures the assembly of new models. The driveline half shaft plant in Tychy, added a Finalized ordinance is temporary, effective until second shift at its December 31, 1997. Warsaw seat assem- Poland bly plant, and is The Polish government’s vehicle preparing to start up Delphi Signs Contract With MERA assembly policy is under fire from a seat assembly plant Blonie local manufacturers such as Daewoo, in Gliwice. Add to local unions, and the EU. all of this manage- In November, Delphi Automotive Systems ment of expansion in Poland signed a contract with MERA Sales Of New Cars Up Over 26% In programs at Delphis Blonie for the assembly of carbon canisters. Poland wiring harness plant in Jelesnia and at its New car sales in Poland were up heat exchanger plant Inside 26.91% during the first 10 months of in Ostrow, and, 1997, according to figures released by indeed, youve got Feature Country: Poland an explosion of SAMAR. Sales rose to 407,061 units Leszek Z. Waliszewski from 320,766 units sold during the activity. • Body & Chassis Review: p. 5 same period in 1996. Sales of locally Delphi currently has 4,000 workers in its • Poland: Duties, Quotas, & Assembly: p. 6 produced cars totaled 214,766 units, up 30.62% compared to the same period last Polish operations three years ago they • CEAR™ Year in Review: p. 10 year. had zero. The company has also built up • Russian Investors & Car Production: p. 14 its headquarters in Warsaw which now • Analysis: Czech Car Distribution: p. 22 Sales of commercial vehicles in Poland employs a staff of 25. • Poland’s Transfer Pricing Rules: p. 15 during the first ten months were up 13.97% Leszek Waliszewski has been Country • 1998 Forecasts: p. 24 to 44,923 units. Locally produced vehicles Director for Delphi Automotive Systems in • GM’s Mackie Gives Advice: p. 9 accounted for 78% of this amount. Sales in the medium commercial vehicle segment Poland since 1994. His responsibilities • Slovak Supplier List: p. 21 were up 38.30%, while sales in the light were recently expanded to include coordi- • Extra Info For PDF Subscribers pp.25,26 commercial segment were down 3.86%. nation of Delphi growth in Eastern Europe. Continued on Page 2 Continued on Page 12 Place Your PDF Ad Here. A direct link to your email address or web site. As easy as a mouse click. [email protected] CEAR.COM ™ Highlights Continued from Page 1 CENTRAL DEM 70 million into the new car assembly operations, including EUROPE infrastructure investments. AUTOMOTIVE REPORT™ Poland Receives World Bank Loan For Ford Alba Plant Brings Purchas- Road Repairs ing Organization to Hungary January 1998 Volume III, Issue 1 Poland will receive a $300 million loan To improve its parts localization ISSN 1088-1123 from the World Bank for road improve- program, Ford Hungaria is setting ments. The loan will have a 15-year up a parts purchasing unit that will repayment term and a 5-year grace operate out of its Alba Plant. Ford period. currently buys about 20% of their production supplies from local Hungary companies, for a volume of about $10 million. Clarion Investing in Greenfield Factory in Hungary Opel Hungary Receives National Quality Award Ronald F. Suponcic, Jr. Jeffrey A. Jones, Esq. Clarion Co., Ltd. will invest over $19 Publisher Editor-in-Chief million into a new Hungarian factory to The Opel plant in Szentgotthard, manufacture car audio equipment and Hungary has won the Hungarian Editorial Assistant National Quality Award. Prime Barbora Grossmannova electronic parts. Production at the new company, Clarion Hungary Electronics minister Gyula Horn presented the Research Assistant Kft, is scheduled to begin in January award to Opel Hungary Managing Katarina Trginova 1999. Director Albert Lidauer at a cer- Design emony in November. Big Sky Creative Capitalized with JPY 1.5 billion ($12.5 Caroline Bond million), the new company will be The criteria for the National Quality [email protected] located some 60 kilometers east of Award contest are the same as those Web Site Design Budapest. Starting with 350 employees for the European Union Quality Big Sky Creative in 1999, Clarion expects this figure to Award set by the European Founda- Ron St Clair grow to 700 by the year 2000. tion for Quality Management. [email protected] Issues considered during the evalua- Reporters Initially, electronic parts will be supplied tion process are leadership, people Catalin Dimofte, Bucharest from the Hungarian factory to European management, policy and strategy, Magda Sowinska, Warsaw resources, processes, employee Valerie Dumas, Budapest car manufacturers, as well as to Clarion’s sales and production bases in Europe, satisfaction, customer satisfaction, January Columnists including Clarion France and Clarion impact on society, and business Tom Ottenheym , Coopers & Lybrand UK. results. Roman Rosiak, Coopers & Lybrand Katarzyna Sawicka-Hughes, Arthur Andersen Elaine Hardy, Harbour Wade Brown Clarion expects to supply original Opel Hungary builds 1.4 liter and 1.6 equipment electronic parts equivalent to 1 liter 16-valve Ecotec engines for The CENTRAL EUROPE AUTOMOTIVE REPORT™, export, and Opel Astra cars, mainly 4800 Baseline Rd., Suite E104-340, Boulder, CO 80303, million units annually from the Hungar- USA, is published monthly, except August, by Central ian factory, and in the future plans to sell for the local market. European Trade & Marketing, L.L.C. in Boulder, its Hungarian built car audio equipment Colorado. on the European after-market. Czech Republic The entire contents of this magazine in print and elec- tronic formats are copyrighted 1998 by Central Audi Hungary Producing V8 Engines Skoda Sales and Production Up European Trade & Marketing, L.L.C. with all rights re- served. Reproduction or use in any form, without per- mission, is prohibited. Annual subscriptions are Audi Hungaria Motor Kft. has started Skoda, automobilova a.s. produced USD$250 for the Standard Print and Email Edition, assembly of 4.2 and 3.7 liter V8 engines 293,564 automobiles in the first 10 USD$450 for the Analyst Edition, and USD$950 for the at its plant in Gyor. Planned capacity for months of this year, up 33% com- AutoNewsFast™ Edition. 1997 and 1998 is 100 units a day. Four pared to the same period last year. Offices in Central Europe and the United States cylinder and V6 engines are already This figure includes 153,552 Business, Editorial, Subscription, Advertising, produced at the factory. Felicias, 64,908 Felicia Combis, and Market Research Inquiries to: 29,851 Pickup utility vehicles, and In the second quarter of 1998, assembly 45,253 units of the new Octavia. CENTRAL EUROPE AUTOMOTIVE REPORT™ 4800 Baseline Rd., Suite E104-340 of the TT Coupe is scheduled to begin at Boulder, CO 80303 USA the plant, with assembly of the TT Tel: +1-440-843-9658 Fax: +1-206-374-5282 Roadster to begin approximately six More Market Highlights Email: [email protected] months later. Audi is investing about on Page 4 2 January 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 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 builders of the American version of the its current output.
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