Six central European countries produce 3.26 million units in 2010, up by 6% from 2009

VW produces New Small Family in Slovakia while Daimler manufactures A-/B-Class in Hungary

2011/07/28

Summary

 This Report outlines the recent activities of OEMs that produce vehicles in six central European countries (Czech, Poland, Slovakia, Romania, Hungary, and Slovenia) (We added two countries - Serbia, where Fiat boosts production capacity, and Bulgaria, where Great Wall Motor builds a new plant).

 In the six countries, more than 3 million vehicles were produced per year from 2007. In 2010, 3.26 million, up by 200,000 from 2009, were produced. Most of them are exported to EU countries such as Germany, France, Italy, and the UK as well as Russia. In 2010, sales of compact cars slowed down due to the termination of each European country's scrap incentives. Yet, in 2011, the demand in Europe and Russia is expected to recover.

 Among OEMs that newly entered the market, Daimler will begin production of the next models of A-/B-Class in Hungary in 2012, while Great Wall Motor will produce one model each of a hatchback, a pickup, and an SUV in Bulgaria starting in September 2011.

 Among OEMs that plan to boost production capacity, Hyundai increases production capacity to 300,000 a year in the Czech Republic in 2012 (production volume in 2010: 200,000), VW to 400,000 in Slovakia by the fall of 2011 (in 2010: 110,000) for producing a low-priced model, the New Small Family, and Audi to 125,000 in Hungary by 2013 (39,000). In addition, Fiat is currently building production capacity of 200,000 a year (15,000) in Serbia.



In six central European countries, production grew by 7% to 3.26 million while sales volume declined by 4% to 780,000 in 2010

 Vehicle production in the six central European countries surpassed 3 million in 2007 for the first time, which increased to 3.27 million in 2008. In 2009, it declined to 3.06 million due to recession, but recovered to 3.26 million in 2010. In the January-May period of 2011, production grew by 4% year-on-year. Growth in Slovakia has been particularly significant.

 Passenger car sales in the six central European countries exceed 1 million in 2007-2008, but fell to 810,000 in 2009 and down further to 780,000 in 2010. In the January-May period of 2011, it is about the same level as in the year-earlier period.

Vehicle production in the six central European countries

(units)
  2006 2007 2008 2009 2010 Jan.-May
2010
Jan.-May
2011
Czech 854,817 937,648 945,822 983,243 1,076,385 442,734 476,010
Poland 716,344 874,602 1,005,707 907,076 894,807 432,282 448,066
Slovakia 267,088 528,163 527,544 433,954 523,019 205,798 240,434
Romania 213,597 241,712 245,308 296,498 350,912 147,243 139,541
Hungary 190,233 296,072 349,785 229,508 211,310 83,925 76,476
Slovenia 153,127 198,402 197,843 212,749 205,711 98,915 88,700
Total 2,395,206 3,076,599 3,272,009 3,063,028 3,262,144 1,410,897 1,469,227

Source: Automobile manufacturers associations of respective countries and other sources, covering all vehicles including heavy-duty trucks and buses
(Note) The figures for Jan.-May 2010/2011 of Czech, Poland, and Hungary do not include heavy-duty trucks and buses.

Passenger car sales in the six central European countries

(units)
2006 2007 2008 2009 2010 Jan.-May
2010
Jan.-May
2011
Czech 156,686 174,456 182,554 167,708 167,501 70,488 72,128
Poland 238,993 293,305 320,040 320,206 333,492 119,771 113,962
Slovakia 59,084 59,700 70,040 74,717 63,998 21,556 27,885
Romania 256,364 315,621 270,995 130,195 106,318 26,351 23,152
Hungary 187,676 171,661 153,278 60,189 43,476 17,278 18,913
Slovenia 59,578 68,719 71,575 57,967 61,142 26,740 27,173
Total 958,381 1,083,462 1,068,482 810,982 775,927 282,184 283,213

Source: ACEA (European Automobile Manufacturers' Association); the figures for Jan.-May 2011 are taken from provisional reports.

Production facilities of major automakers (six major central European countries and Serbia and Bulgaria)

  Automaker Location Main production model Production (units)
2009 2010
Czech Hyundai Nosovice Hyundai i30, i30cw, ix20/
(until summer 2011) Kia Venga,
(from summer 2011) Hyundai ix35
118,000 200,135
Skoda Mlada Boleslav Skoda Octavia, Fabia 528,585 576,362
Kvasiny Skoda Roomster, Superb,
Superb Combi, Yeti
Vrchlabi Skoda Octavia, Yeti
Toyota/PSA Kolin Toyota Aygo/Peugeot 107/
Citroen C1
332,489 295,712
Poland Fiat Tychy Fiat Panda, 500, Seicento/
Lancia Ypsilon/Ford Ka
605,450 533,455
GM Gliwice Opel Astra, Zafira 96,399 158,732
GM FSO Warsaw Chevrolet Aveo/
Daewoo Lanos, Matiz
59,695 45,854
VW Poznan VW Transporter, Caddy 138,193 149,200
Slovakia Kia Zilina Kia cee'd, cee'd Sporty Wagon,
pro cee'd, Sportage/
(until summer 2011) Hyundai ix35,
(from summer 2011) Kia Venga
150,015 229,469
PSA Trnava Peugeot 207/Citroen C3 Picasso 207,128 187,954
VW Bratislava VW Touareg/Audi Q7/Skoda Octavia
(from October 2011) New Small Family
(also manufacturing the bodies of Porsche Cayenne)
76,171 105,596
Romania Ford Craiova Ford Transit Connect
(from the beginning of 2012) B-MAX
300 9,558
Dacia Pitesti Renault/Dacia Logan,
Sandero, Duster
296,010 341,299
Hungary Suzuki Esztergom Suzuki Swift, SX4, Splash/
Fiat Sedici/Opel Agila
195,081 169,676
Audi Gyor Audi A3 Cabriolet,
TT Coupe, TT Roadster
32,657 38,744
Daimler Kecskemet (from 2012)
M-Benz A-/B-Class successor
0 0
Slovenia Renault Novo Mesto Renault Clio II, Twingo, Wind 212,749 205,711
Serbia Fiat Kragujevac Fiat Punto, (from the end of 2011) Uno/
Opel Astra Classic
16,337 14,551
Bulgaria Great Wall Lovech (from September 2011) Voleex C10,
Wingle 5, Haval H6
0 0

Source: Websites of respective automakers and others; production volumes are taken from automobile manufacturers associations of respective countries and from INOVEV (Mavel) data

 



Czech: Hyundai boosts production capacity to 300,000 vehicles and to 500,000 transmissions in 2012

 In Czech, OEMs including Hyundai, Skoda, and Toyota/PSA produced 980,000 in 2009 and 1.08 million in 2010, becoming the largest country in central Europe in terms of production volume.

 Hyundai will expand its plant in Czech to boost production capacity of vehicles to 300,000 a year in 2012 (currently 200,000) and of transmissions to 500,000 per year (currently 300,000). Concerning production models, it added the ix20, which is a B-segment MPV, in the fall of 2010.

 Toyota/PSA's joint venture plant currently produces A-segment models under three brands - Toyota, Peugeot, and Citroen. In 2010, production declined by 11% due to the termination of scrap incentives in European countries. In 2011, production will be the same level as in 2010, but it is expected to grow in 2012, when the demand for compact cars will increase.

Hyundai: boosts production capacity to 300,000 vehicles and 500,000 transmissions per year in 2012

 In June 2011, Hyundai invested 3.5 billion koruna (about USD212 million) in its Nosovice plant in the Czech Republic, starting the expansion work to boost production capacity of vehicles from 200,000 to 300,000 a year. The company will also construct a second unit that produces transmissions to increase production capacity from 300,000 to 500,000 a year (it will also supply transmissions to Kia's Zilina plant in Slovakia). This expansion work is scheduled to be completed in 2012.
 In addition, in order to enhance production capacity, Hyundai will employ 900 new workers. The company plans to introduce a third shift in the fall of 2011 with a plan to hire 650 workers in 2011 and 250 in 2012.

Hyundai: started production of the ix20 in the fall of 2010, beginning production of the ix35 instead of Kia Venga in the summer of 2011

 Hyundai produces the ix20, a B-segment MPV that was launched in Europe in October 2010, at its Nosovice plant in Czech. The model is designed and developed by the Europe R&D center in Russelsheim, Germany. Following the ix35, Hyundai's latest design "Fluidic Sculpture" is introduced. It is a sister car of Kia Venga.
 Hyundai/Kia will transfer production of Kia Venga from the Nosovice plant to Kia's plant in Slovakia in the summer of 2011 and will transfer production of the Hyundai ix35 from Kia's plant in Slovakia to the Nosovice plant.

Source: Automotive News Europe (Jun. 7/Jun. 23, 2011)

 

Toyota/PSA: decreased production volume by 11% to 296,000 in 2010

 In 2010, Toyota/PSA's joint venture plant in the Czech Republic decreased production by 11% year-on-year to 296,000 due to the termination of scrap incentives in European countries. Sales also fell by 16% to 44.7 billion koruna, but due to the successful cost reduction measures, the pre-tax profit remained the same as the year earlier at slightly less than 1.4 billion koruna. The 2011 production volume is expected to be about the same level as in 2010, but in 2012, production is forecast to grow as the demand for compact cars will increase.

Source: Automotive News Europe (Mar. 23, 2011)

 



Poland: 1.01 million, 910,000, and 890,000 vehicles are produced in 2008, 2009, and 2010, respectively

 Poland is the second largest vehicle production country in central Europe following the Czech Republic; Fiat, GM, GM FSO, and VW produced more than 1 million in 2008. However, production declined to 910,000 in 2009 and to 890,000 in 2010.

 In November 2011, Fiat will transfer production of the new Panda from the Tichy plant to the Pomigliano d'Arco plant in Italy. On the other hand, in April 2011, the company started production of the Lancia Ypsilon at the Tichy plant.

 In May-July 2011, GM boosts production of the Opel Astra at its Gliwice plant in order to respond to an increase in sales. In addition, it will manufacture a new convertible under Opel/Vauxhall brand, which will be launched in 2013, at the Gliwice plant.

Fiat: transfers production of the new Panda to a plant in Italy in November 2011

 In November 2011, Fiat will transfer production of the new Panda from the Tichy plant in Poland to the Pomigliano d'Arco plant in Italy. In January 2011, a new labor-management contract came into effect at the Pomigliano plant; the labor union approved the change of the work system including the shift to a 6-day work week/3 shifts. Fiat invests 800 million Euros to boost production volume of the Pomigliano plant to 270,000-300,000.
 The transfer of the production of the new Panda to the Pomigliano plant is part of Fiat's Fabbrica Italia (its plan to boost production of passenger cars in Italy from 650,000 in 2010 to 1.4 million in 2014). In order to make profit from production in Italy, the company will shift from the current work system of 235 days/year and 2 shifts to 280 days/year and 3 shifts, thus improving production efficiency by 70%.

Fiat: starts production of Lancia Ypsilon in April 2011

 In April 2011, Fiat started production of the Lancia Ypsilon at its Tichy plant in Poland. The company targets to sell 120,000 in 2012. The model is a 5-door hatchback and is Lancia's mini flagship. It was launched in major countries in Europe in June 2011. In the UK and Ireland, where no Lancia vehicles are marketed, it will be launched under the Chrysler brand in September.

Source: Fiat Press Release (Feb. 15, 2011), Automotive News Europe (Mar. 26/Jun. 22, 2011)

 

GM: adds production equivalent to 8 shifts of Opel Astra at the Gliwice plant in May-July 2011

 In May 2011, GM Europe (Opel/Vauxhall) announced that, in order to respond to increase in sales of the Astra, it would add production equivalent to 8 shifts of the Astra 5-door hatchback and the Astra Sports Tourer at the Gliwice plant in Poland in May-July. (It will also add production equivalent to 8 shifts at the Ellesmere Port plant in the UK. In addition, it plans to produce the Astra 5-door hatchback and the Insignia on the same line at the Russelsheim plant in Germany starting in August 2011)

GM: produces a new convertible to be launched in 2013 under Opel/Vauxhall brand at the Gliwice plant

 In February 2011, GM announced that it would launch a new convertible under the Opel/Vauxhall brand in 2013. The new model shares the same platform for compact cars with the current Astra, its wagon model SportsTourer, and the Astra GTC 3-door coupe. The model as well as the Astra is produced at Gliwice plant in Poland. The development of the new model is part of Opel's restructuring plan announced in February 2010, in which it will invest a total of 11 billion Euros by 2014.

Source: Opel Press Release (Feb. 25/May 12, 2011)

 



Slovakia: Kia builds a new engine plant while VW produces New Small Family

 In Slovakia, OEMs including Kia, PSA, and VW produced 530,000 in 2007 and 2008. Yet, production declined to 430,000 in 2009. In 2010, 520,000 were produced. According to the Automobile Manufacturers Association in Slovakia, due to the termination of scrap incentives in European countries, production remained at 520,000 in 2010. Yet, as the demand in Russia and Europe recovers in 2011, production volume is expected to increase by about 12%.

 Kia began production of the new Kia Sportage/Hyundai ix35 and the Kia pro cee'd at the Zilina plant in 2010. In the second half of 2011, it will start operations of its new engine plant capable of producing 150,000 a year.

 PSA will start producing a third model in 2012 following the Peugeot 207 and the Citroen C3 Picasso. It plans to produce 300,000 a year with 3 shifts.

 VW's Bratislava plant boosted production of SUVs (VW Touareg and Audi Q7) by 39% from 2009 to 106,000 in 2010 as the demand for those models increased in Germany and emerging countries. Among them, 99.3% are exported to EU countries and China. The Bratislava plant will enhance its production capacity by 43% to 400,000 a year by the fall of 2011, and will begin production of a low-priced model, the New Small Family.

Kia: started production of new Kia Sportage/Hyundai ix 35 and pro cee'd in 2010

 After Kia made a world premiere of its new Sportage SUV at the Geneva Motor Show in March 2010, it started production at its Zilina plant in Slovakia in June. The model shares the same platform with the Hyundai ix35, production of which began at the beginning of 2010. The two models are developed by Hyundai group's development division in Europe.
 In December 2010, the company initiated production of a new version of Kia cee'd (5-door hatchback), pro cee'd 3-door hatchback, at the Zilina plant in Slovakia.

Kia: produces Venga in place of Hyundai ix35 starting in the summer of 2011, boosting production of Sportage

 In the summer of 2011, Hyundai/Kia will transfer the production of the Kia Venga (49,000 in 2010) from Hyundai's plant in the Czech Republic to Kia's Zilina plant in Slovakia and the production of the Hyundai ix35 (76,000 in 2010) from the Zilina plant to Hyundai's Czech plant. The Zilina plant intends to increase production of the Kia Sportage by using a newly available production line. Kia sold about 20,000 of the former Sportage in 2009. The company planned to sell 50,000 of the new Sportage in 2011, but says, in June 2011, that it forecasts to sell more than 70,000 a year.

Kia: starts operations of a new engine plant in the second half of 2011, having combined production capacity of 450,000 with existing plant

 Kia invested 100 million Euros in its Zilina plant in Slovakia and started the construction of a new engine plant in April 2010, which was completed in April 2011. The new plant begins full-production in the second half of 2011 with production capacity of 150,000 a year. The company will hire about 200 new workers.
 In June 2011, Kia produced its one millionth engine at its existing engine plant in slightly less than five years after production began. Currently, the plant produces 1,350 engines a day with three shifts, having production capacity of 300,000 a year. The 60 percent of the engines that it produces are gasoline engines including 1.4L gasoline engines used in the Kia cee'd and the Venga and the remaining 40% are diesel-powered engines.

Source: Kia Motors Europe Press Release (Jun. 25, 2010/Dec. 15, 2010/Jun. 6, 2011), Automotive News Europe (Jun. 23, 2011)

 

PSA: begins production of a third model in 2012, expecting to produce 300,000 a year

 In April 2011, PSA announced that it would invest 130 million Euros in its Trnava plant in Slovakia to start producing a new model in the spring of 2012. This is a third production model of the plant following the Peugeot 207 and the Citroen C3 Picasso. The company is expected to hire 900 new workers in the spring of 2012 to start 3-shift production, expecting to produce 300,000 a year (currently 2 shifts with 3,000 workers. In 2010, 188,000 were produced). Details of the model newly added are unknown.
 From the 23rd to the 30th of March, 2011, PSA reduced production at its Trnava plant in Slovakia to 40-50% of the regular production as Hitachi's supply of electronic parts fell behind due to the Great East Japan Earthquake (Parts from Japan are imported by air. The company usually have parts equivalent to about 10 days). The supply recovered gradually from March 31st and was back to normal as of April 10.

Source: PSA Press Release (Mar. 28, 2011) and various media reports

 

VW: invests 308 million Euros to produce New Small Family starting in 2011 fall

 VW will start producing New Small Family (NSF), a fuel-efficient, low-priced compact hatchback (3-door/5-door) that is based on the up! concept car at its Bratislava plant in Slovakia in the fall of 2011. The company plans to produce the model under three brands - VW/Seat/Skoda. It will start marketing it in Europe at the beginning of 2012. Concerning the production of the NSF, the company will invest 308 million Euros in the expansion of production facilities to increase the current production capacity by 43% to 400,000.

VW: plans to invest 1 billion Euros in Slovakia by 2015 to boost production of vehicles and parts

 VW announced that it would invest 1 billion Euros in Slovakia during the five years from 2011 to 2015 to expand production of vehicles and parts (announced in February 2011).

Source: VW Press Release (Mar. 15, 2011), Automotive News Europe (Jun. 23, 2011/Apr. 22, 2009)

 



Romania: Dacia produces Duster, Logan SUV version, while Ford manufactures B-MAX

 In Romania, OEMs including Renault (Dacia) and Ford produced 300,000 in 2009 and 350,000 in 2010.

 Renault started producing the Logan SUV version - Dacia/Renault Duster - at its Pitesti plant in the spring of 2010.

 In June 2011, Ford revised its production plan in Europe, producing B-segment models at its Craiova plant in Romania in the future. The company plans to manufacture a compact minivan, new B-MAX, starting in 2012. It will transfer production of a successor model of the Transit Connect compact commercial van, which it currently produces, to Spain.

Renault:produces Dacia/Renault Duster starting in the spring of 2010

 Renault started production of the Duster, which is an SUV version of the Logan, at its Pitesti plant in Romania in the spring of 2010. This model is introduced under Dacia and Renault brands. It is marketed under Dacia brand in Romania, EU countries, Turkey, Algeria, and Morocco while it is sold under Renault brand in the Ukraine, the Middle East, and African countries. It will also be produced in Russia and Brazil in 2011.

Source: Renault Press Release (Dec. 18, 2009/Jun. 16, 2011)

 

Ford: revises production plan for Europe, starting to produce B-MAX in Romania in 2012

 In June 2011, Ford revised its production plan in Europe. The company plans to introduce more than 20 new models (including full remodeling and significant updating) in Europe during the next three years. In order to improve productivity and its product-driven growth strategy, it produces C-segment models at its Valencia plant in Spain and the Saarlouis plant in Germany, and B-segment models at its Cologne plant in Germany and the Craiova plant in Romania.
 The Craiova plant in Romania will begin producing a compact minivan, the new B-MAX, at the beginning of 2012 and will add the production of another B-segment model in the future. Also at the beginning of 2012, it will start production of a fuel-efficient 1.0L EcoBoost engine. In order to revamp the facilities at the Craiova plant, Ford plans to invest more than 675 million Euros. (The Valencia plant in Spain will produce a successor model of the Transit Connect, a compact commercial van that is currently produced at the Craiova plant).

Source: Ford Press Release (Jun. 14, 2011) and Automotive News Europe (Jun. 14, 2011)

 



Hungary: Audi increases production capacity by 3-fold to 125,000 a year while Daimler starts operations of a new plant in 2012

 In Hungary, OEMs including Suzuki and Audi produced 350,000 in 2008, which decreased to 230,000 in 2009 and further to 210,000 in 2010.

 Audi will boost the production capacity of its Gyor plant by 3-fold from the 2010 actual production to 125,000 per year by 2013. The company plans to produce the A3 Cabriolet and the TT Coupe/Roadster as well as other derivative models of the A3.

 Daimler will build a new plant that is capable of producing 100,000 a year to begin production of new models of A-/B-Class in 2012.

 GM Europe (Opel/Vauxhall) will construct new production facilities with a production capacity of 500,000 a year at the Szentgotthard engine plant. Operations will begin at the end of 2012.

Suzuki: Due to the Great East Japan Earthquake, Magyar Suzuki reduced from the regular 2 shifts to 1 shift for about a month

 With electronic parts from Japan in short supply due to the Great East Japan Earthquake, Magyar Suzuki reduced from the regular 2 shifts to 1 shift starting on May 3, 2011. About one month later, on June 6, it returned to 2 shifts with a production volume of 850 per day. The company is said not to have slashed jobs during the production cutback.

Source: media reports.

 

Audi: boosts production capacity by 3-fold from the 2010 actual production to 125,000 per year by 2013

 In September 2010, Audi announced that it would boost the production capacity of its Gyor plant in Hungary to 125,000 a year by 2013 (The company produced 39,000 in 2010). The total investment is worth 900 million Euros (excluding investment in acquiring the site). In the summer of 2010, the company acquired the 2-million-square-meter adjacent site of its existing plant from the government for 23 million Euros. It will expand production facilities to produce other derivative models of the A3 in addition to the A3 Cabriolet, the TT Coupe, and the TT Roadster, which it currently produces. With this increase in production, the company is expected to create 1,800 jobs directly and 15,000 indirectly.
 The Gyor plant has been using bodies manufactured by Germany-based Ingolstadt, but, it is considering a start-to-finish production from body manufacturing, painting, to assembly after the expansion work is completed.
 The Hungarian government approved a direct subsidy of 11.2 billion forint (about USD61 million) as Audi's capital investment can be expected to create jobs (announced in April 2011).

Source: Audi Press Release (Sep. 23, 2010), Automotive News Europe (Apr. 7, 2011)

 

Daimler: produces new models of A-/B-Class at new plant in 2012

 Daimler invested 800 million Euros and has been constructing a compact car plant in Kecskemet, Hungary since October 2009. The company will begin trial operations in the fall of 2011, planning to start operations in the first quarter of 2012. The new plant is capable of producing 100,000 a year and will manufacture the next models of the A-/B-Class.

Source: Daimler Press Release (Oct. 16, 2009), Automotive News Europe (Jun. 2, 2011), and media reports

 

GM (Opel/Vauxhall): constructs new production facilities with production capacity of 500,000 engines a year at its plant

 In April 2011, GM Europe (Opel/Vauxhall) invested 500 million Euros in its Szentgotthard engine plant in Hungary to start construction of new production facilities. Operations are planned to begin at the end of 2012. The new facilities are expected to create 800 new jobs. When full-scale production starts, the new plant will have production capacity of 500,000 engines a year. It will produce compact/midsize gasoline engines and mid-size diesel-powered engines. With each engine meeting Euro 6 emission standards, the company supplies fuel-efficient and low-emission engines.

Source: Opel Press Release (Apr. 12, 2011)

 



Slovenia: Renault starts production of Daimler's smart four-seater in 2013

 In Slovenia, Renault is the only OEM that produces vehicles. It produced about 210,000 each in 2009 and in 2010.

 Renault started production of new coupe-roadster Wind at its Novo Mesto plant in the spring of 2010. The company will begin producing Daimler's smart four-seater by commissioning it in 2013.

Renault: starts producing new coupe-roadster Wind in the spring of 2010

 In the spring of 2010, Renault began producing the new 2-seat coupe-roadster, the Wind, at its Novo Mesto plant in Slovenia. The company started marketing the model in the UK and Slovenia in July 2010 and in other European countries in September. The Wind is a 3.83-meter-long compact car that shares the same platform with the Clio II RS (Renault Sport). It comes with a 1.2L turbo engine or a 1.6L engine. The electrical glass roof automatically opens or closes in 12 seconds.

Renault: begins production of Daimler's smart four-seater in 2013

 In February 2011, Renault announced a summary of a production restructuring plan. The company plans to produce a four-seat model of Daimler's compact car, the smart, by commissioning at its Novo Mesto plant in Slovenia, starting in 2013. Based on the strategic alliance concluded in April 2010, Renault/Nissan and Daimler are currently co-developing a new platform (a unique rear-wheel-drive system currently used in the current smart 2-seater) to be used in the new smart and the new Twingo. (In June 2011, it was reported that the launch of the new smart and the new Twingo has been postponed to 2014.)

Source: Renault Press Release (Jun. 28, 2010), Renault/Nissan Press Release (Apr. 7, 2010), and Automotive News Europe (Feb. 9/Jun. 10, 2011).

 



Serbia: Fiat starts production of the Uno at the end of 2011

 Fiat formed an alliance with Serbia's state-run OEM, Zastava, starting production of the Punto in December 2006. In 2008, the company established a joint venture company with the Serbian government and took over Zastava's Kragujevac plant. The company plans to build a production capacity of 200,000 a year by mid 2011. It is planning to manufacture the Uno (which is developed and produced in Brazil) designed for Europe, starting at the end of 2011.

Fiat: produces two models on a trail basis in the second half of 2011, starting production of the Uno at the end of 2011

 Fiat plans to start test-production of two new models at Zastava's Kragujevac plant in Serbia in the second half of 2011. The company will enhance facilities until mid 2011, expecting to have a production capacity of 200,000 a year at full production. Fiat will increase the investment in its Serbian plant by 100 million Euros from the initial plan to 800 million Euros. The Serbian plant is currently producing the Punto, which is scheduled to be discontinued in 2012.
 Fiat plans to manufacture a European version of the new Uno, which it develops and produces in Brazil, at its Kragujevac plant in Serbia to introduce it at the end of 2011. The Uno is a B-segment entry-car, which is placed between the Panda and the Punto Evo in Fiat's lineup. The model was launched in Brazil in May 2010.

Source: Automotive News Europe (Jul. 27, 2010) and various media reports.

 



Bulgaria: Great Wall Motor starts operations of a new plant capable of producing 50,000 a year

 In September 2011, Great Wall Motor will start operations of a first vehicle plant in Bulgaria. The plant is capable of producing 50,000 a year, planning to produce one model each of hatchback, pickup, and SUV.

Great Wall Motor: starts operations of its plant in Bulgaria in September 2011. It exhibited nine models at the Sofia Motor Show

 In October 2009, Great Wall Motor signed a memorandum of understanding with Bulgaria-based Litex Motors on the establishment of a joint venture and the construction of a plant. Operations are scheduled to begin in September 2011. The plant, built in Lovech City, which is 170km northeast of Bulgaria's capital, Sofia, is capable of producing 50,000 a year. It plans to manufacture the Voleex C10 hatchback, the Wingle 5 pickup, and the Haval H6 SUV. The local government is giving special treatment to the plant as it is Bulgaria's first vehicle plant.
 Great Wall Motor exhibited nine models at the Sofia Motor Show held in Bulgaria in June 2011 as the only China-based OEM. The company showcased mass-marketed models including Haval H5, Voleex C30, Voleex C10, and Wingle 5, and new models such as Haval H6 and Voleex C20EV.

Source: Great Wall Motor Press Release (Jun. 11, 2011)

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