In Business News this week: Czech central bank predicts labour market improvement; Czech Republic increasingly attractive for international manufacturers; car production up by 11 pct between January and September; railway operator ČD Cargo doubles profit but loses market share; and developer Orco leaves Prague stock exchange. More
The car manufacturer Škoda will resume its production in Russia on Monday, the daily Lidové noviny writes on Thursday. The car manufacturer suspended production in two of its plants, in Kaluga and Nizhny Novgorod, on the 8th of September. Despite the ongoing crisis in Ukraine, which has had a negative impact on the automotive industry in Russia, Škoda’s share in the Russian market in July increased from 3.1 to 4.2 percent on an annual basis.
The car manufacturer Škoda Auto sold over 36,000 vehicles in Europe last month, and moved from tenth to ninth place of the best-selling brands on the continent, according to figures by the European Automobile Manufacturers Association released on Wednesday. Compared to the same month last year, Škoda’s sales increased by 21 percent, giving the carmaker a record 5.2 percent market share.. Škoda’s Czech sales however only grew by 7 percent in August year on year.
Czech nuclear power plant Temelín should not be threatened by a possible interruption of nuclear fuel supplies from Russia due to the on-going conflict in Ukraine, says ČEZ Chief Executive Daniel Beneš. Mr Beneš, who visited the plant on Thursday along with Deputy Prime Minister Pavel Bělobrádek, says the plant’s fuel reserves should last for a year. The deputy Prime Minister has been holding talks with the plant’s operator ČEZ about deepening science and research links with the energy sector.
Plans to expand the Czech nuclear power plant in Temelín have been put on hold, with a previous tender cancelled over the project’s dubious viability. A Russian-led bid competed with a US-Japanese offer for the multi-billion deal. The Czech government is set to decide by the end of the year whether the project will be revived – and with the Russians now presumably out of the game, Chinese and Korean firms are eyeing the lucrative contract. More
Business News: the Czech government debates measures to cushion the impact of the EU-Russian sanctions, Prague hosts a two-day Chinese Investment Forum, Škoda Auto aims to increase its sales in China and Czech farmers expect a record grain harvest. More
The German-owned Czech-based car manufacturer Škoda Auto will hire some 800 workers for its main plant in Mladá Boleslav within the next three months to produce its new Fabia model, a spokesman for the firm said. Škoda, which employs around 19,500 people at Mladá Boleslav, is to start producing the third-generation Fabia in the coming days with the official premiere scheduled for the Paris auto show in October. The producer sold 522,500 cars in the first half of the year, 12.5 percent more than in the same period last year.
Speculation has been raised in the Russian media that Moscow’s next retaliatory sanctions against the European Union and West could cover car imports. If that were the case, then the Czech Republic’s biggest industrial companies and exporters could suffer an unwelcome, but not fatal, blow. More
Czech energy giant ČEZ announced its operating revenues in the first half of 2014 year-on-year in an online press release earlier today. According to ČEZ, the group’s net income was 17.2 billion crowns, 40 percent lower than last year. ČEZ blames the warm and dry winter along with low electricity prices and plans to raise earnings by cuts in fixed costs and expanding its business into new areas. More
The Czech government will pay the German carmaker Volkswagen 301 million crowns after losing a dispute with the firm over settling debts following the privatization of Škoda Auto, the daily Lidové noviny reported on Monday. Volkswagen acquired Škoda in 1991 but claimed then Czech government siphoned off hundreds of millions of crowns. Earlier this year, the Czech government lost an international arbitration in the case as well as a court case heard by an Austrian court. Finance Minister Andrej Babiš had released the funds, and said he would determine who was responsible in the case, the daily said.