International Property News

Staff numbers in car industry up at 124,000

21st February 2008

Companies in the Czech car industry grouped in the Association of Automotive Industries (SAP) employed 121,440 staff in 2007, a growth of 3.3 percent, or 3,896 people, on the year, data from the SAP out Thursday showed.

Staff numbers in the car industry have been growing since 2004. In January and February this year, the number has increased by 2,649.

In 1993, when the independent Czech Republic was established after a split from Slovakia, companies in the car industry employed 88,000 staff. The number decreased in the next three years but in 1997 was at the level from 1993 again and has been growing ever since except the years 1999 and 2003.

Companies in the supplier sector employ nearly 73 percent of the total workforce in the car industry. Producers of vehicles and car bodies employ nearly 27 percent.

Medium-sized companies with 250 staff and less (61 firms in total) employ the biggest share of workforce in the car industry. Only 14 companies employ more than 1,500 staff. Companies with 250 to 1,500 staff (81 firms in total) employ the rest.

The monthly wage at companies grouped in the SAP reached Kc24,291 last year, a growth of 7.53 percent against end-2006 and almost four times more compared with 1993.

The average wage of blue collar workers grew by 7.61 percent to Kc20,768 in 2007. The average wage at companies grouped in the SAP has been more than 11 percent higher than the Czech average in the long term.

Companies in the SAP contributed more than Kc12bn worth of social and health insurance payments for 2007. Moreover, the companies' staff paid almost Kc10bn worth of taxes and mandatory payments.

The Czech Republic has gradually been transforming into a car-making superpower in recent years. Car production improves the situation in the entire industry and foreign trade has been posting surpluses recently as a result, although some experts have warned against too much dependence on this segment.

The largest Czech passenger car maker is Skoda Auto which produced 623,529 cars last year, an increase of 12 percent.

TPCA, a joint plant of Japan's Toyota and France's PSA Peugeot Citroen, came second with 308,478 cars produced in 2007, up by 5 percent.

Next year, South Korean car maker Hyundai will launch production in its new plant in Nosovice, northern Moravia. Hyundai wants to produce 200,000 cars a year in the first phase. At full capacity, the plant will produce 300,000 cars.

The SAP had 156 members as of February 18, of which 14 were producers of cars and car bodies.

Apart from Skoda Auto and TPCA, the SAP's members include MTX, Tatra, Avia Ashok Leyland Motors, Iveco Czech Republic and Jawa Moto, for instance.

The SAP also comprises 122 supplier companies and 20 other firms, including AGC Automotive Czech, Almet, Barum Contitnntal, Bosal CR, Brano Group, TI Automotive AC, Metalplast Lipnik n.B., Fezko, Gumotex and Motorpal.