www.czechinvest.org Last update: February 2015
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The Czech Automotive Industry at a Glance
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Passanger Car Manufacturers
4
Buses and Commercial Vehicles
6
OEM Supplier Case Studies in the Czech Republic
10
Top Automotive R&D Location
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Selected Czech-Based Technology Centres
12
Czech Technical Universities and Automotive
R&D Projects
13
Education and Workforce
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Labour Market
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Financial Support
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Success breeds success and this adage certainly epitomises the Czech Republic, which hosts one of the highest concentrations of automotive-related manufacturing and design activity in the world. With passenger car production at 107.5 vehicles per 1,000 persons, the Czech Republic has maintained its supreme position among world automotive leaders in terms of per-capita output.
It is also among the fi fteen largest global passenger car producers by volume. The Czech
automotive industry employs more than 150,000 people and accounts for more than 20% of both Czech manufacturing output and Czech exports.
The Czech automotive centre of excellence plays a key role not only in the European but also in the global perspective. Based on the country’s century-long engineering tradition, good infrastructure and skilled workforce, it signifi cantly contributes to automotive manufacturing and R&D.
While the country has the capacity and resources to accommodate three major carmakers – Škoda Auto (Volkswagen group), TPCA (Toyota/PSA joint venture) and Hyundai Motor Manufacturing Czech – and holds excellent business opportunities for suppliers, the Czech Republic is poised to consolidate its position as one of the leading European centres for automotive-related design and R&D activity.
Why to Invest in the Czech Republic
-- Strategic location in Central Europe; direct access to the EU market of 500 million consumers; time and logistics advantages
-- Highly integrated into the European automotive value chain
-- Well-developed transport and telecommunications infrastructure
-- Robust supplier base
-- Highly educated workforce, good access to university graduates with technical education
-- Strong innovation potential for R&D projects
-- Positive approach of the Czech government, investment support covering up to 25%
of eligible costs through a transparent system of investment incentives
-- First-class support from CzechInvest
We are convinced about the
appropriateness of our decision to
kick off our new facilities for the
production of premium brakes in the
Czech Republic. In this country we
are
fi
nding skilled human resources
and authorities ready to support our
challenging start-up. Thanks go
also to CzechInvest, which facilitated
our decision through its professional
assistance.
Roberto Vavassori, Business Development Director, Brembo
“
”
2000 201 2012 2013 2014 1 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 459,357 1,277,875 1,134,285 1,181,314 1,201,000 1,077,166 983,992 948,128 939,788 855,832 603,849 449,891 443,902 454,968 470,589 Source: AIA 2015The Czech automotive
sector had a
record--breaking year in 2014
with
1,278,000
motor vehicles
manufactured.
Škoda Auto:
120 Years of Automotive History
In 1895, Václav Klement and Václav Laurin founded their business in Mladá Boleslav. This makes ŠKODA one of the oldest automobile brands in the world. In 1991
ŠKODA AUTO became Volkswagen Group’s fourth brand after VW, Audi and Seat. Management, marketing, product development and production processes underwent fundamental modernisation. In 2001 the brand’s fi rst plant outside Europe was built in Aurangabad, India. Production of ŠKODA models was launched at the Volkswagen Group’s plant in Shanghai, China in 2005.
ŠKODA AUTO is continuing to successfully implement its growth strategy. In 2014 the Czech carmaker achieved the best sales year in its history, delivering 1,037,200 vehicles. In 2014, the comprehensive model campaign, which had been initiated four years previously, was once again the top priority for the Czech manufacturer. In March, the pioneering “ŠKODA VisionC”
concept was the fi rst highlight of last year’s ŠKODA model premieres. The Octavia G-TEC,
Octavia Scout, three special Monte Carlo editions for the Citigo and Yeti and Rapid Spaceback were introduced over the course of 2014. In November the new ŠKODA Fabia provided the grand fi nale of last year’s model roll-outs.
The Octavia is the heart of the brand. The third generation Octavia is proving to be a massive hit, with worldwide sales totalling 389,300 in 2014. The ŠKODA Rapid performed extremely well and became the second best-selling model with 221,400 units delivered. The ŠKODA Fabia achieved sales of 160,500 units last year. In addition, the ŠKODA Yeti achieved sales of 102,900 units, the Superb attracted 91,100 customers and the smallest model in the line, the Citigo, had sales of 42,500 units. The ŠKODA Roomster won over 29,600 customers around the world. As part of its model and design campaign, the company is further strengthening its marketing activities on both the European and international markets. To support the plan, ŠKODA is continuously investing in the expansion of its Czech production plants in Mladá Boleslav and Kvasiny. In addition to strengthening the company’s solid position in Western Europe (+11.8% in 2014), the Czechs are also focusing on the growth market of China, which is ŠKODA’s strongest individual market with total sales of 281,400 units in 2014.
Passenger Car Manufacturers
www.skoda-auto.cz
The characteristics of today’s Central
European automotive industry as I see
them are state-of-the-art technology and
highly competitive factories; a highly
skilled workforce and long tradition in
engineering together with favourable
wages and especially unit costs. And
last but maybe most important, access
to know-how and division of labour. In the
Czech Republic ten years ago our role
solely was to maintain and exploit these
advantages.
Dr. Carl H. Hahn, Honorary Chairman, former Chairman of the Board of Directors, Volkswagen AG
“
”
Škoda Auto operates
13 plants
in six
countries in Europe
and Asia and exports
passenger cars to more
than
100 markets
around the world.
Toyota Peugeot Citroën Automobile
Green Factory in the Centre of Europe
Toyota and PSA Peugeot Citroën launched production of cars at the TPCA (Toyota Peugeot Citroën Automobile) plant in the Czech Republic in early 2005. Four years after the carmakers unveiled their joint-venture project and three years after they chose a site near the Czech town of Kolín, the fi rst cars rolled off the production line – one each of the new Toyota, Peugeot and Citroën models. TPCA have produced totally more than 2.5 million of cars till nowadays.
The facility was designed primarily by Toyota, the partner that took most of the responsibility for manufacturing. PSA Peugeot Citroën is responsible for the supplier network of TPCA. TPCA has been constructed as one of the greenest factory in Europe. From the beginning, TPCA pays attention for the investments into the most environment-friendly production technologies and promotes environment-friendly thinking of employees. Its results of energy
and water effi ciency highly above the industry average confi rm the success of this effort
as well as the results of waste management system with low production of waste and high ratio of recycling. At around EUR 750 million, the state-of-the-art plant located about 60 kilometres east of Prague is one of the biggest foreign investments in Central Europe to date. The capacity of the plant is 300,000 vehicles produced in one year. Currently TPCA produces new generation of models Toyota Aygo, Peugeot 108 and Citroën C1, small city cars with low fuel consumption and emissions.
Roughly 80 percent of supplies come from the Czech Republic. More than 99% of the cars are exported to European markets, mainly France, Italy, the United Kingdom, the Netherlands and Germany. TPCA has roughly 3,000 employees.
Hyundai Motor Manufacturing Czech
The Most Modern Carmaker in Europe
Another success story began with the announcement of a EUR 1 billion investment in Nošovice, Moravian-Silesian Region, in 2006. At that time, the
Korean car manufacturer Hyundai Motor Company decided to build here its very fi rst production facility in Europe, which according to expert opinion is currently the most modern car factory in Europe. By building this factory, Hyundai Motor Company expanded its global production network, which includes other manufacturing facilities in Korea, China, India, the United States, Russia, Brazil and Turkey.
Hyundai Motor Manufacturing Czech (HMMC) produces three passenger-car models – ix20, ix35 and i30. The manufacturing facilities consist of a stamping shop, a welding shop, a paint shop,
a fi nal assembly shop and two transmission shops. The transmission shops are of particular
importance as they produce transmissions not only for HMMC but also for its sister company Kia Motors Slovakia in Žilina. Conversely, Kia’s Slovak plant provides HMMC with motors, thus creating a unique complex of mutually cooperating units.
The importance of Hyundai’s huge investment, one of the biggest in the Czech Republic to date, was also based on the fact that Hyundai came to the Moravian-Silesian Region in the nick of time, so to speak, as the region suffered from high unemployment resulting from painful restructuring processes in its traditional industries. Hyundai offered to create approximately 3,300 jobs and additional 7,000 were created by component suppliers that followed Hyundai to the Czech Republic. The Czech government and the Moravian-Silesian Region followed up this investment by spending billions of Czech crowns on infrastructure, particularly roads and railways.
In 2008, manufacturing capacity was set at 200,000 cars per year, a fi gure that was reached
after only two years of production. Upon initiation of three-shift operation in autumn 2011, the maximum capacity of Hyundai Motor Manufacturing Czech has risen to 300,000 cars per year. Because the production plans were exceeded in 2013 and 2014, HMMC plans to produce 330,000 cars in 2015.
Since 2008, we have developed our
business to become a truly ‘European’
brand. Our Czech plant is at the heart
of our European success, producing
the two best-selling Hyundai models
in the region and making one car every
minute. It’s cars such as New ix35
and New Generation i30 that have
helped us achieve a record-high
European market share of 3,5%
in 2012.
Allan Rushforth, former Senior Vice President and COO, Hyundai Motor Europe
“
”
www.hyundai-motor.cz
At the beginning we expected from the
Czech Republic bene
fi
ts like the long
tradition of the automotive industry with
a developed network of suppliers and
a good location in the middle of Europe
close to markets with good potential
for future growth. Now, after almost ten
years in the Czech Republic, we con
fi
rm
that we made the right decision for our
new home ground. Not just because
of the well-known bene
fi
ts, but we
also recognise the capable and skilled
manpower that is willing to learn and
improve itself. This is essential for our
future growth.
Satoshi Tachihara, former President of TPCA
“
”
TPCA pays attention for the investments into the most environment-friendly production technologies and promotes environment-friendly thinking of employees. Its results of energy and water effi ciency highly above the industry aververererragea confi rm the success of this effort as well as the results of waste manaananaaan gementntntnntnn system wm m mm ith low pwwwwww roductccion of waste and high ratio of recycling. At around EURRRRRRRR 7775777 0 millllllliioioiioion, the e see sstasss te-of-f-f-ff-f-f-f-the-art pt ppplpppplalanlll t located about 60 kilometres east of Prague iiiss ss s os s s ne of theththththeththh biggest foforoororoooreigoeigeigneigeigeigeigeiggn inn niinvennnvnvenvenvvvestmsssssss ents in Cn Cnnnnnn entral EuEEEEEEEE rope to date. The capacity of the pe e pe pe pe plant is 33333333000,00000 000000000vevevevevev hichichichichichichicicleslelelllelee proooduooduododucedcedcecededdiiinnoooonononoono e yyeaeaeareareareareareara. C. C. C. C. C. CCCCCurrurrururrurrurururuu ently yyyy yyyyyTTTTPCTT A prodro uces new generation of modmodmodmodmodmodmodmodels Toyota AAAAAygoAAAAygoygoygoygoygoygogogogo, P, P, P, PPeeePPPPeeuge eotototttt10101010101088 a88 a88 andnndndndndddCCitroëëëën Cëëën Cn Cnn Cn Cn Cn C1,111,1,1,1,ssssmasss ll city carsrsrssss wwwiwiwwwwth low fuel consumppppption and dddemememiememmssisisionsononono .
Roughly 80 percercercrcrcrcrcent oofoofoofo suusususuppppplppppieesesessss come from the Czech Republic. More thahahahahahahaan 9n 9n 9n 9nn 9n 9nn 99%9%9%9%9%9%9%%% ooooofofofof the cacacacacacacac rrs are exporpopppoted to Europopoppppeaneaneaneaneaneanaana mamamammamamamamarrrkrker ts, mainly France, Italy, the United Kingddddddddom,om,om,omm,mmm,m thththththtththhe Ne Ne e Ne Ne Ne NNetherlands and Geeermarmarmarmrmarmarmm nyny.nynynynynny TPCA has roughly 3,000 employees.
but we
and skilled
earn and
tial for our
shi Tachihara, ident of TPCA
Buses and Commercial Vehicles
Iveco Bus
Iveco Czech Republic, with its headquarters in Vysoké Mýto, is the largest factory of the Iveco Group, the second largest bus manufacturer
in Europe. The company focuses mainly on production of intercity buses, though starting in 2011 the production programme newly includes Citelis 10.5 m and 12 m city buses with diesel and CNG engines, as well as bodies for trolleybus versions.
Iveco Czech Republic also offers the widest range of products of the entire Iveco Group, including minibuses, tourist coaches and city, suburban, long-distance and intercity buses. Fundamental diversifi cation over the last three years has resulted not only in new designs, improved passenger comfort and outstanding consideration for the environment, but also great value for money, thanks to the quality, life service and low operating costs of the buses. In addition, a focus on environmental friendliness has brought about a signifi cant expansion of the range of buses on offer that use alternative fuels.
In the area of city transport, Iveco Bus is maintaining its current position as the European leader in terms of environmental protection, reduced emissions and expansion of the range of buses
powered by alternative fuels. The line of very popular low-fl oor Citelis city buses has been
expanded with the addition of the low-entry city/suburban/long-distance Crossway LE, which has become a sought-after model and is offered in a three-door version. The traditionally very strong position of Iveco Bus in the segment of long-distance coaches continues to be supported by the Arway and Crossway models.
www.iveco.com
SOR Libchavy
SOR Libchavy, the leading Czech bus and coach producer, was established in 1991 and its fi rst bus was on the road only two years later. The company currently produces 550 buses of its own
design in all categories annually. Compared with the competition, the main benefi t of SOR’s
buses is their low weight, which on average is up to two tonnes lower than comparable buses from other manufacturers. Due to this lower curb weight, fuel consumptionis 14.5% less than that of other types of buses in the market.
SOR Libchavy produces buses in city, intercity, tourist and low-fl oor city versions. These buses have been equipped with IVECO Euro VI engines as standard since 2014.
Another innovation in the pipeline is the production of two more fullylow-fl oor city buses.
For the intercity bus segment, SOR offers three mid-fl oor models as well as a low-entry version. The company also produces electric buses, trolleybuses and CNG buses. SOR obtained ISO 9001 certifi cation in 2001. Exports account for around 50% of total output, and increased production is aimed at foreign markets like Slovakia, the Baltic states, Serbia, Moldova, Russia, Ukraine, Denmark, Belgium, Holland, Germany, Croatia and Bulgaria.
www.sor.cz
TATRA
TATRA TRUCKS a.s. is one of the oldest vehicle manufacturers in the world. It has always been situated in Kopřivnice, a town in the eastern part of the Czech Republic, the Moravia-Silesia region.
TATRA TRUCKS a.s. has two subsidiaries – Taforge a.s. and Tafonco a.s.
Its core production programme includes heavy-duty off-road trucks and vehicles for combined off-road and on-road transport which have been continuously improved due to increasing customer requirements. One important advantage of TATRA, a. s., not only in the field of development but also production capacities, is the high level of human potential.
The TATRA brand trucks are based on the TATRA vehicle design which has not yet been successfully
copied by anybody. Heavy trucks from Kopřivnice are famous for their passability through the
most diffi cult terrains in extreme climatic conditions, high reliability and excellent utility characteristics. TATRAs can adjust to bitter frosts as well as abnormally high desert temperatures. While other heavy truck manufacturers that originated in the historical territory of the Czech state either did not exist for very long or were swallowed up by more successful ones, the TATRA brand is still alive. It is the only one to keep the fl ag of the Czech design school hoisted in its segment.
www.tatratrucks.com
ŠKODA ELECTRIC
Is a leading global manufacturer of electric drive units and traction
motors for trolleybuses, tramways, locomotives, underground trains, etc. and is continuing
the long tradition of production at the Škoda Works in Plzeň, which began at the company’s
Electrical Engineering Works in 1901.
ŠKODA ELECTRIC offers its customers modern 12m, 15m and 18m low-fl oor trolleybuses.
Every Škoda trolleybus features all necessary electrical equipment housed in a container on the vehicle’s roof. For travel outside of trolley lines, the buses can be equipped with an auxiliary diesel generator that complies with the EURO VI standard or with a battery unit including a microprocessor-controlled voltage inverter with the possibility of recuperation. Škoda is a global leader in supplying trolleybuses to the whole world. In 2013 Škoda concluded a record-setting order for 125 modern trolleybuses for Riga, Latvia, and also carried out major orders for buses delivered to, for example, the Bulgarian cities of Sofi a, Burgas, Pleven and Stará Zagora, as well as the Slovak capital, Bratislava.
Thanks to the company’s extensive experience and successes in the area of development and production of trolleybuses, it has incorporated into its portfolio a range of vehicles with ecological alternative drive systems: the hydrogen-powered TriHyBus, series-produced Hybrid H12 and the Battery bus. One of the company’s key products in the area of e-mobility is its fully battery-powered bus called the ŠKODA PERUN (Pure Electric RUNner), which is a twelve-metre
low-fl oor electric bus with a ŠKODA asynchronous traction motor and maintenance-free Li-Pol
traction batteries. For the purpose of charging the vehicle within a period of only eight minutes,
Škoda Electric also possesses a concept of automated charging infrastructure, which fulfi ls
the COMBO II global charging standard and is thus compatible with the infrastructure developed for the automotive sector.
copied by anybody. Heavy trucks from Kopřivnice are famous for their passability through the most diffi cult terrains in extreme climatic conditions, high reliability and excellent utility characteristics. TATRAs can adjust to bitter frosts as well as abnormally high desert temperatures. While other heavy truck manufactutuuuuurerrerrr s thatttooriginatted edeeedd in thee hhihstorical al all territory of the Czech state either did not exist for veryryyyy yyy llollololong or wr wwere swswwwwwaallowed udd dd d dd p by my m m mmmmmore successful ones, the TATRA brand is still aliveiveivevvevvev . It is tthhetttthehehehhh only one tto ttottotototoo keekekeekeekeekkeekeekeep tp tp tp tp tp tp tp tthheheheheeeeefl ag of tthhttttthehe hhhh Czech h h hh h hh ddesd ign school hoisted in its segmenenenenenenent.
Airbag&Safety Car Trim
Global Safety Textiles GST Automotive Safety Indet Safety Systems (Nippon Kayaku) Takata Tokai Rika Toyoda Gosei TRW Automotive Automotive Electronics Akuma Continental Draka Furukawa Johnson Controls KES - kabelové a el. Systémy Kostal Leoni Mitsubishi Electric Satrema Int. Takata Tesla Blatná Tesla Jihlava Tokai Rika TRW Automotive TVM TYCO Electronics Yazaki Brakes Brembo Continental Cooper-Standard Automotive Federal Mogul FTE Automotive Knorr-Bremse TI Group TRW Automotive Chassis Benteler Brano Group Hyundai Mobis Koyo Bearings
KYB Manufacturing Czech Monroe Tenneco Mubea
Schaefm er Group Door Systems & Car Locks Assa-Abbloy Brano Group Brose Construct Czech Defend Edscha Inteva Products Kiekert Pyeong-Hwa Tokai Rika Witte Engine Systems Aisin Seiki Alfmeier Almet Bontaz-Centre Brabant Alucast Czech Brisk ëZ Strakonice Honeywell Turbo Technologies Jihostroj Kolbenschmidt Pierburg Magneton Metalis Nejdek Nemak PBS Turbo Robert Bosch Strojirny Poldi TRW Automotive Exhaust Systems and Filters Bosal Donaldson Eberspächer International Faurecia Exhaust Systems Karsit Mann+Hummel Monroe Tenneco Tyll Witzenmann Exterior AGC Aoyama CIE Automotive Duve Essa - Grupo Estampaciones Sabadell Futaba Key Plastics Klein&Blažek Kovovyroba Hoffmann Magna International Massag
Plakor Czech (ARRK) s. n. o. p. Saint-Gobain Sekurit Sungwoo Hitech Tawesco Tiberina Automotive BĎlá Tokoz Zeveta Fuel System Continental Cooper-Standard Automotive Motorpal Robert Bosch TI Automotive Toyoda Gosei HVAC Behr Denso Eberspächer International Fujikoki Ingersoll Rand Keihin Senior Automotive TI Automotive Valeo
Varroc Automotive Systems Infotainment solutions Continental Kyocera Display Panasonic Automotive Systems TVM Acoustics Magna International MEGATECH Industries Recticel Rieter CZ Tomatex Lighting Systems Automotive Lighting Hella Autotechnik Koito
Halla Visteon Autopal Rubber and Plastics Avon Automotive Gumarny Zubri Hutchinson Kautex -Textron Plakor Czech (ARRK) Saar Gummi ZPV Controls) Johnson Controls Karsit Lear Magna International Viza Automocion Steering and Drive Control Systems Dura
JTEKT Corporation TRW Automotive
Interior
EuWe Eugen Wexler Int. Faurecia Interior Systems Bohemia Gruppo Antolin Gumarny Zubri Gumotex Hyundai Mobis Inteva Products Key Plastics Seatings Brose Car Trim
Commercial Vehicle Group Dymos
Faurecia Fehrer Bohemia Fezko Thierry (Johnson
Wheels & Tyres Barum Continental Hayes Lemmerz Alukola Mitas
Ronal CZ
that 56 of the top 100 global top tier automotive
Airbag&Safety Automotive Electronics Brakes Chassis Exterior Door Systems Exhaust Sysstems Engine Systemms and Filters HVAC Infotainment solutions& Car Locks
Fuel System
Interior
Lighting Systems
Rubber and Plastics
Seatings
Steering and Drive Control Systems
Moravian-Silesian Automotive Cluster
The Moravian-Silesian Automotive Cluster supports innovation and enhancement of the competitive advantage and export abi-lity of its 62 members in the Moravian-Silesian region. It helps to
develop the automotive industry in the region through strong industrial enterprises, universities, research institutions and other organizations, in both the private and public sectors.
The cluster also contributes to the enhancement of permanent competitiveness of regional suppliers for the automotive industry in the Czech Republic as well as abroad and creates conditions for increasing the technical capacity and utilisation of the local workforce.
www.autoklastr.cz
Automotive Supplier Database
CzechInvest’s database of automotive suppliers offers comprehensive information about automotive component
manufacturers in the Czech Republic. The database contains nearly 900 companies and its scope covers the Czech
Republic’s entire automotive supplier base, making it an exceptional tool for mapping the possibilities of this sector
in a given region. Other unique aspects are the division of suppliers into Tiers 1, 2 and 3 and useful display of
customers for each component produced by a given supplier. The database thus provides information on which
vehicle manufacturers the given components are intended for. These manufacturers include all global brands such as
VW, Daimler, Toyota, BMW, Ford, Volvo, Porsche, Audi, etc.
The database is available free of charge at
http://suppliers.czechinvest.org
Automotive Industry Association of the Czech Republic
The AIA is an industrial interest asso-ciation of manufacturing, commercial and other companies that make up the automotive and related industries in the Czech Republic.
Today the AIA covers most of the auto-motive sector with 145 members. The association’s main goals are focused on the long-term deve-lopment of the Czech automotive inustry, contribu-tion to the competitiveness of Czech automotive companies and support of networking and mutual cooperati-on between its members and foreign countries.
In addition to providing various statistical information and consultancy services, the AIA represents the common interests of the sector in dealing with national and international authorities.
Top Automotive R&D Location
In the long term, the Czech Republic is one of the world’s most attractive automotive R&D locations. This is due to the perfect blend of an outstanding engineering tradition, excellent technical education and consistent attention to ongoing training of new, high-quality automotive professionals.
Selected Technology and R&D Centres
KARLOVY VARY
USTI NAD LABEM
LIBEREC PRAGUE PLZEN CESKE BUDEJOVICE JIHLAVA PARDUBICE HRADEC KRALOVE OLOMOUC OSTRAVA ZLIN BRNO Source: CzechInvest 2015 CENTRAL BOHEMIA REGION AUFEER DESIGN Behr Czech Faurecia Idiada CZ Ingersoll Rand Kostal CR MBtech Bohemia Swell Škoda Auto PRAGUE MBtech Bohemia Porsche Engineering Services Ricardo Prague
Valeo Systemes Thermiques TÜV-SÜD Czech LIBEREC REGION Denso Idiada CZ TRW Automotive MSV Systems CZ PLZEŇ REGION MBtech Bohemia NARETEC
ZF Engineering SOUTH BOHEMIA REGION Robert Bosch
ČZ a.s. MOSLED TRW-DAS Brisk
HRADEC KRÁLOVÉ REGION Continental Teves Swell VYSOČINA REGION Bosch Diesel Mann+Hummel Motorpal
SOUTH MORAVIA REGION Blata
Honeywell Turbo Technologies Mann+Hummel ZLÍN REGION Nippon Kayaku OLOMOUC REGION HELLA KG Hueck&Co. Horiba MORAVIAN-SILESIAN REGION Behr Czech
Continental Automotive Systems Hayes Lemmerz International Varroc Lighting Systems
My experience with Czech engineers
in automotive fields during my 25
years with GM and Chrysler R&D
in the US and Canada has been more
than excellent. They have a high level
of technical education, comprehensive
knowledge and understanding of
complicated technical issues and
excellent skills. Czech universities offer
a pool of engineering and management
talents for the global market.
George Strnad, Design Engineer, General Motors Corporation
“
”
TRW Automotive Škoda Auto Porsche Engineering Honeywell Siemens Bosch Brano Tatra Škoda Auto MAN Audi Daimler Bosch Continental Magna Saint-Gobain TRW Automotive Volkswagen AG Valeo Škoda Auto Bosch MBtech Bohemia ABB ZF Friedrichshafen Škoda Auto TRW Automotive Tatra Volkswagen Honeywell Magna Powertrain Motropal Škoda Auto Brose Continental Hayes Lemmerz Honeywell Varroc Lighting Czech TechnicalUniversity in Prague Technical University of Liberec University of West Bohemia, Pilsen Brno University of Technology VŠB – Technical University of Ostrava
Czech Technical Univeristies and Their Automotive Partners
www.cvut.cz
www.tul.cz
www.zcu.cz www.vutbr.cz
MBtech Bohemia
MBtech Bohemia is based in three locations in Plzeň, Prague and Mladá Boleslav as a subsidiary of MBtech Group, a global provider of automotive engineering and consulting services. The Czech R&D centres specialize in CAD design of components and modules for new vehicles, engines and electronics. The scope of services ranges from concepts including Class A Design, engineering services, production of prototype parts and model building, as well as complete vehicle testing. MBtech Bohemia in the Czech Republic is the biggest foreign subsidiary of MBtech Group worldwide.
Ricardo Prague
Ricardo Consulting Engineers UK operated in the Czech Republic from 2000 until Ricardo Prague Ltd. was established in 2005. Prague Technical Centre cooperates daily with other members in the UK, USA, Germany, Italy, Japan, China and India Ricardo locations, and others to provide CAE design and analysis support to satisfy customers around the world. Prague
Technical Centre offers research and development and design support mainly in the fi eld
of internal combustion engines, transmissions, vehicle technology and Control&Electronics. The current number of 160 engineers is a consequence of the interrupted growth during the crisis period. Ricardo Prague undertook a major expansion of its technology centre in the Czech Republic in 2004 and has been growing recently again.
Swell Technology Centre
At its Development Services Centre in Hořice, Czech Republic, the engineering company
SWELL operates a progressive technology centre for comprehensive development support in the automotive industry. The scope of services covers CAD/CAE engineering and prototyping, mainly in the sheet-metal area (BIW structures), and a wide range of development testing (vibration tests at high temperatures for engines and exhaust-system components, frequency and modal analyses, combined mechanical/environmental testing for plastic and metal structures, etc.). The company’s customers include Škoda Auto, Honeywell Turbo Technologies, Continental Automotive Systems, Faurecia Exhaust Systems, Magna International, and many others.
Valeo Climate Control
Valeo Climate Control has a technology centre in Prague to provide engineering support for its heating, ventilation and air-conditioning (HVAC) and control panel programmes. As it is engaged in all new development projects, the Czech R&D centre cooperates with nearly all Valeo climate control divisions elsewhere in the world. As a state-of-the-art yet cost-effective development location, Valeo’s Czech R&D centre is considered a centre of excellence for air-conditioning system design.
Varroc Lighting Systems
Varroc Lighting Systems, a wholly-owned entity of the Varroc Group, is a leading Tier 1 global automotive supplier specializing in Research & Development and manufacturing of exterior lighting products such as headlamps, signal lamps, auxiliary lamps, projector systems, and electronic control modules. Varroc Lighting Systems is registered in the Netherlands, headquartered in Plymouth, Michigan, USA, and operates in Asia, Europe and North America, with nearly 5000 employees. The Varroc Group completed the acquisition of the global lighting division of Visteon Corporation on the 1st of August 2012 and now presents its brand as Varroc Lighting Systems. In the Czech Republic, Varroc Lighting Systems operates two plants, a tool factory and a global development centre. With more than 2,300 employees Varroc Lighting Systems is one of the major employers in the Moravian-Silesian Region and the Czech Republic.
yet cost-effective development location, Valeo’s Czech R&D centre is considered a centre of excellence for air-conditioning system design.
Varroc Lighting Syst
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control moduleslesesesesess. VarrrrrrrooocococcLigLigLigLigLighthttitnnngnnn Systems is registered in the Netherlanddds,dddddss,ss,ss,s, hheaheaheaheaheadqueaeadqudqudqudqudquuaartereeeeddd id id id id id in Plymouth, Michigan, UUUUUUUSAUSA,SA anSSASA,SA,SAA anananananannddddd odd perates in Asia, Europe and North Amerierrrriririrca,cacaca,cacacaa,wwiwiwiwwiwwwithth ttthth th th hnnneneann rly 5000 employyyeeseeseeseeseeseeeesee . T. T. T. TThe Varroc Group completed the acquisition of the global lighting division of Visteon Corporation oon on on on on nthethethethethehehehe 1st of August 2012 and now presents its brand as Varroc Lighting SysSSysSysSySysSysSysysystemtemtemtetemtemtemmmms. sssss
In thehhh CzechhReReReReReRReRRRepubpubpubpubpubpuppublic, Varroc Lighting Systems operates two plants, a tool factory anddddddda ga ga ga ga ga a ggglobloblobllobloblobobobbaal aa
develooopmppmpmpmepm nt centre. With more than 2,300 employees Varroc Lighting Systems is one of the major employers in the Moravian-Silesian Region and the Czech Republic.
Czech Technical University in Prague Students: 20,066
Graduates: 4, 704 PhD graduates: 1,953 Charles University Prague Students: 2,568
Graduates: 563 PhD graduates: 692 Institute
of Chemical Technology Prague Students: 4,381
Graduates: 754 PhD graduates: 812
Source: Ministry of Education, Youth and Sport, 2014
Technical University of Liberec Students: 3,238 Graduates: 608 PhD graduates: 316 University of Pardubice Students: 5,385 Graduates: 934 PhD graduates: 406
Technical University of Ostrava Students: 14,264
Graduates: 3,340 PhD graduates: 1,198
University of West Bohemia Plzen
Students: 4,421 Graduates: 886 PhD graduates: 538
Brno University of Technology Students: 18,235
Graduates: 4,444 PhD graduates: 1,671 Tomas Bata University Zlin Students: 3,466
Graduates: 920 PhD graduates: 268
Education and Workforce
The Czech Republic offers high-level technical education at several technical universities evenly distributed across the country. The country has more than 90,000 university students majoring in technical or science-related programmes. More than 20,000 graduates enter the workforce every year and the number of technical graduates increase every year.
Apart from universities, the Czech educational system features other sources of skilled labour, including specialised four-year higher professional schools whose students graduate with the near equivalent of a university bachelor’s degree.
Technical Universities 2013/2014
Czech Republic Technical Students TotalStudents: 94,579 Graduates: 20,573 PhD graduates: 8,238 LIBEREC PRAGUE PLZEN PARDUBICE OSTRAVA ZLIN BRNO
Number of Students and Graduates Czech Universities
Automotive Related Programmes Academic year 2013/2014
Region Students Graduates
Prague 5,420 1,106 Central Bohemia 30 0 South Bohemia 0 2 Plzen 1,184 190 Karlovy Vary 0 0 Usti 642 79 Liberec 1,457 279 Hradec Kralove 0 0 Pardubice 981 150 Vysocina 4 4 South Moravia 1,693 301 Olomouc 41 36 Zlin 578 125 Moravia-Silesia 939 298 Total 12,958 2,570
Source: Ministry of Education, Youth and Sport, 2014
Number of Students and Graduates
Higher Professional Schools, Secondary Specialized Schools and Vocational Training Centres Automotive Related Programmes Academic year 2013/14
Region Students Graduates
Prague 1,986 397 Central Bohemia 2,576 692 South Bohemia 2,144 563 Plzen 1,363 402 Karlovy Vary 626 131 Usti 1,656 346 Liberec 1,117 229 Hradec Kralove 1,483 386 Pardubice 1,585 394 Vysocina 1,626 395 South Moravia 3,157 736 Olomouc 1,905 422 Zlin 1,368 389 Moravia-Silesia 3,390 776 Total 25,982 6,258
Source: Ministry of Education, Youth and Sport, 2014
Technical Students and Graduates from Czech Universities 2013/2014
Note: According to the selected study programmes – source CzechInvest. Complete ICT included.
Labour costs in the Czech private sector stand at 45% of the EU-27 average. Nevertheless,
the main benefi t of the Czech Republic consists in the excellent cost-quality ratio of the
country’s highly educated and skilled workforce. This is especially relevant within the comparison to other CEE countries.
According to Eurostat’s data from 2013, the Czech Republic’s labour costs remain very competitive in the EU. The Czech Republic can offer average labour-cost savings of 40% to 60% in comparison with costs in Western Europe or the United States For instance, in 2013 the Czech hourly wage in the manufacturing sector was EUR 10 as compared to EUR 36.20 in Germany, EUR 36.70 in France and EUR 22 in the United Kingdom.
Gross Monthly Wages (median) in the Automotive Sector, 2013
Position CZK/month EUR/month Total labour costs*
Mechanical engineers 40,602 1,480 1,983
Mechanical engineering technicians 29,114 1,061 1,422
Welders and fl ame cutters 23,840 869 1,164
Sheet-metal workers 23,046 840 1,125
Electrical mechanics and fi tters 24,265 884 1,185 Motor vehicle mechanics and repairers 20,433 745 998
Assemblers 18,956 691 926
Mechanical-machinery assemblers 21,386 779 1,044
Manufacturing labourers 15,623 569 763
*Total labour costs include employer´s insurance contributions (34%).
Average Exchange Rate 1 EUR=27.441 CZK (average for Q1 2014, Czech National Bank 2014)
Source: Ministry of Labour and Social Affairs, 2014
Business Legislation
Foreign legal entities are allowed to conduct business activities, including acquisition of real estate, under the same conditions and to the same extent as Czech businesses. They may become founders or co-founders of a company, or may join an existing Czech company.
Foreign companies may operate in the Czech Republic, either by establishing a branch
offi ce registered in the Czech Republic or by establishing a Czech company. There are four
different legal forms of companies; the most common are limited liability companies (s.r.o.) and joint-stock companies (a.s.). The trade name of a company must be unique.
Such business entities may employ either Czech citizens or foreign citizens, who are subject to registration, visa and other requirements. Residency and green-card systems are available for key foreign employees. In addition to the choice of investment in corporate, non-corporate and EEC specifi c entities, investors enjoy the advantage of an advanced (judicial and non-judicial) legal and dispute resolution system, anti-trust protection and the umbrella of EU protective regulation.
There are three reasons to utilise
the Czech workforce. The
fi
rst reason
is low labour costs, which are
signi
fi
cantly lower in comparison
with Western Europe. The second
reason is Czech workforce’s high level
of quali
fi
cations, which is con
fi
rmed
by the number of Czech employees
who work for Bosch worldwide in
managerial positions and on speci
fi
c
tasks. The third reason is the high
degree of flexibility of employees,
who are able to accept new
challenges and new projects
and are highly mobile.
Milan Šlachta, Commercial Manager, Robert Bosch
“
”
The average wage
in the Czech Republic
is
30%
of that
in Germany.
Such business entities may employ either Czech citizens or foreign citizens, who are subject to registration, visa and other requirements. Residency and green-card systems are available for key foreign employees. In addition to the choice of investment in corporate, non-corporate and EEC specifi c entities, investors enjoy the aaaaaaadvantagggegge ggege of an advdvdvddanced (judicial and non-judicial) legal and dispute resolution system,em,em,em,em,mmm, anti-trurururuuuust protececeeecction andndndndndndddthe ummmmmmmbbbrbrebb lla of EU protective regulation.Financial Support
The Czech Republic offers both new and existing investors support covering up to 25% of costs associated with investment projects. Aid is provided mainly from the national investment incentives scheme; specific activities – such as establishment of R&D centres, establishment of training centres, energy savings, renovation of buildings, etc. – cen be also supported from EU structural funds.
Investment Incentives
Investment incentives are offered for implementation of new projects or expansion of existing projects in the areas of:
-- Manufacturing
-- Technology/R&D centres
-- Centres of business support services – shared service centres, software-development
centres, high-tech repair centres, data centres, call centres
Aid is provided in all regions, with the exception of Prague, pursuant to the Act on Investment Incentives and consists of the following incentives:
Source: Investment Incentives Act – Amendment of 2015
Forms of Incentives
Corporate tax incentive Full corporate tax relief for up to ten years for new companies Partial tax relief for up to ten years for existing companies Real estate tax incentive Exemption from real estate tax in selected regions for up to fi ve years Job-creation grants Financial support for creation of new jobs in selected regions
(up to EUR 11,000 per new job)
Training and retraining grants Financial support for training and retraining of new employees in selected regions (up to 50% of eligible training costs)
Cash grants for capital investment Available for large strategic investment projects (see the details below)
Eligibility Criteria
Manufacturing Technology centres Centres of business support services Minimum investment of EUR 2-4
million depending on the region’s rate of unemployment; at least 50% of the eligible costs must expended on new machinery
Minimum investment of EUR 0.4 million; at least 50% of the eligible costs must be expended on new machinery
No conditions regarding minimum investment
Creation of at least
20 new jobs Creation of at least 20 new jobs Creation of at least 20 new jobs at data centres and software-development centres; at least 70 new jobs at shared service centres and repair centres; at least 500 new jobs in call centres
No works may be started on the project prior to the application for incentives is submitted to CzechInvest Source: Investment Incentives Act – Amendment of 2015
Introduction of the institution of Strategic Investment
Besides other investment incentives, strategic investments can receive a grant for capital investment in the amount of up to 10% of eligible costs, respectively up to 12,5% of eligible costs if the investment into production occurs simultaneously with the establishment or expansion of a technology centre. The total maximum state aid intensity shall henceforth be governed by the Regional Map of the Czech Republic.
In addition to proximity to manufacturing
facilities, the government incentives
programme for new technology centres
was key to Honeywell’s decision.
We are very pleased with the support
CzechInvest is providing.
Dan Shefl in, Vice-President and Chief Technology Offi cer of the Automation and Control Solutions, Honeywell
“
”
Between 1998 and
2014,
924 projects
were supported with
investment incentives.
The total investment
amount reached
EUR 24.3 billion.
Specifi c Conditions of Strategic Investment
Production Technology
centre Minimum investment
in long-term tangible and intangible assets
EUR 20
million* EUR 8 million* New jobs created 500+ 100+ Maximum grant
for capital investment EUR 60 million EUR 20 million
through its services and development programmes.
Our Objectives
-- To advise and support existing and new companies to grow and prosper in the Czech
Republic
-- To facilitate communication between the public and private sectors
-- To actively infl uence the positive development of the business environment
-- To support the competitiveness of the Czech economy
CzechInvest is exclusively authorised to file applications for investment incentives at the relevant governing bodies and prepares draft offers to grant investment incentives. Its task is also to provide potential investors with current data and information on the business climate, investment environment and investment opportunities in the Czech Republic.
Our Services
-- Detailed, sector-specifi c market intelligence and value propositions
-- Customised business cases
-- Identifi cation of business properties and sites suitable for investment
-- Tailored visits to the Czech Republic
-- Access to investment incentives and EU funds
-- Information and advice on doing business in the Czech Republic, regulations
and taxation
-- Identifi cation of potential business partners, suppliers and acquisition targets
-- Referrals to professional associations (lawyers, bankers, accountants, etc.)
-- Aftercare service
Our services are fully funded by the Ministry of Industry and Trade as a part of the business support measures so they are free of charge to businesses.
www.czechinvest.org CZECHINVEST HEADQUARTERS CZECH REPUBLIC Stepanska 15 120 00 Prague 2 PHONE: +420 296 342 513 E-MAIL: automotive@czechinvest.org WEB: www.czechinvest.org
Date of issue: February 2015
This material is distributed free of charge.
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