By Leos Rousek
PRAGUE--Czech car makers' production for 2012 dropped 1.7% on
the year to 1.17 million on slowing demand for small cars, exposing
a fault-line in the recessionary Czech economy, data released
Monday by the Car Industry Association showed.
"Despite its decline from 2011, last year's output was the
second-highest in the country's entire car making history," the
association said in a statement.
With car manufacturers accounting for about 40% of the overall
Czech output, last year's drop in car output confirms views that
the country's economy will remain in recession through the final
quarter of 2012. The economy began contracting in late 2011.
Other countries in the region, including Slovakia and Hungary,
are also heavily dependent on their car making sectors. While
Hungary has been mired in recession for nearly as long as the Czech
Republic, Slovakia's economy has kept growing modestly.
The output of Skoda Auto AS of Germany's Volkswagen AG (VLKAY),
and Czech Republic's largest car maker, declined 2.5% on the year
to 656,306 vehicles largely on stoppages at its plants to re-tool
for new models.
TPCA, a joint venture of Japan's Toyota Motor Corp. (TM) and
France's PSA Peugeot Citroen (UG.FR), which makes small city cars
in the Czech Republic, saw its output down 21% on the year to
214,915 cars, driven partly by rising competition in the segment
and TPCA's aging model lineup.
Hyundai Motor Co.'s (005380.SE) Czech unit however boosted its
output 21% on the year to 303,035 units. The South Korean car maker
uses its Czech unit and Slovak-based subsidiary of its affiliate
Kia Motors Corp. (000270.SE) as springboards for European
expansion.
Write to Leos Rousek at leos.rousek@dowjones.com
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