Czech Prime Minister Highlights Toyota’s Cologne EV Production as Election Boost
COLOGNE, GERMANY – Czech Prime Minister Petr Fiala is leveraging Toyota’s โcommitment to electric vehicle production in Cologne, germany,โค as a key talking point ahead of upcoming elections, โฃframing it as a win for theโฃ Czechโ automotive industry. The declaration comes as Volkswagen facesโ scrutiny for cuts to apprenticeships and arts funding.
Toyota reportedโ exceeding production expectations this year, manufacturing ten million cars globally – a figure reached โขafter a two-year gap. Though, productionโ at its โCologne plant saw a slight decrease in theโ first six months of the year, with 116,000 cars produced, representing โคa โคseven percent year-on-yearโ decline. The majority of vehicles produced in Cologne were Yaris hybrid models.
The โdecision to invest in EV production isโ significant for the Czechโ Republic,which โขproduced nearly thirteen percent of โall passenger cars โsoldโค in the EU last year. EY advisor Petr Knap stated, “Obtainingโ electric vehicles is a grate news for the โwhole Czechโ automotive, in the Czech Republic, โฃbyโ the way, almostโข thirteen โpercent of all passenger cars that were sold last year in the EU were produced last year.” He โฃaddedโข that this secures a clear future perspective forโ a keyโ manufacturer operating within the country as europe transitions to electric vehicles.
Toyota’s success in the Visegrad Four โฃmarkets – โconsistently ranking among the top three brandsโ – and recent modernizationโข ofโ the Cologne plant, fully acquired less than five years ago, are โcontributing factors toโ the investment.
Toyota Motor Manufacturing Czech โคDivision experienced financial growth โฃlast โฃyear, increasing sales from 74 to โฃ76 billion crowns โand profit fromโค 2.5 to โคthree billion crowns.
Industry analystโข Jan Razim suggests Toyota’s investment โcould serve asโ a positive precedent for negotiations betweenโ the Czech โฃGovernment and Volkswagen Group, citing the example of the โขbattery production โfactory for โelectric cars in โคthe Pilsen region, valued at over โฃone billionโ crowns.
Razim also noted โคthe challenges facing the โautomotive sector โin Central Europe, including a slower-than-expected transition to low-emission transport, high energyโ costs, โand labor market inflexibility.โค He anticipates further announcements regarding supplier contractsโค in the โขnear future, as these โagreements typically โฃspan several years.
