Czech Prime Minister Highlights Toyota’s Cologne EV Production as Election Boost
COLOGNE, GERMANY – Czech Prime Minister Petr Fiala is leveraging Toyota’s commitment to electric vehicle production in Cologne, germany, as a key talking point ahead of upcoming elections, framing it as a win for the Czech automotive industry. The declaration comes as Volkswagen faces scrutiny for cuts to apprenticeships and arts funding.
Toyota reported exceeding production expectations this year, manufacturing ten million cars globally – a figure reached after a two-year gap. Though, production at its Cologne plant saw a slight decrease in the first six months of the year, with 116,000 cars produced, representing a seven percent year-on-year decline. The majority of vehicles produced in Cologne were Yaris hybrid models.
The decision to invest in EV production is significant for the Czech Republic,which produced nearly thirteen percent of all passenger cars sold in the EU last year. EY advisor Petr Knap stated, “Obtaining electric vehicles is a grate news for the whole Czech automotive, in the Czech Republic, by the way, almost thirteen percent of all passenger cars that were sold last year in the EU were produced last year.” He added that this secures a clear future perspective for a key manufacturer operating within the country as europe transitions to electric vehicles.
Toyota’s success in the Visegrad Four markets – consistently ranking among the top three brands – and recent modernization of the Cologne plant, fully acquired less than five years ago, are contributing factors to the investment.
Toyota Motor Manufacturing Czech Division experienced financial growth last year, increasing sales from 74 to 76 billion crowns and profit from 2.5 to three billion crowns.
Industry analyst Jan Razim suggests Toyota’s investment could serve as a positive precedent for negotiations between the Czech Government and Volkswagen Group, citing the example of the battery production factory for electric cars in the Pilsen region, valued at over one billion crowns.
Razim also noted the challenges facing the automotive sector in Central Europe, including a slower-than-expected transition to low-emission transport, high energy costs, and labor market inflexibility. He anticipates further announcements regarding supplier contracts in the near future, as these agreements typically span several years.
