William Malcolm

Hyundai Nosovice Profit Plummets 43% Due To COVID-19

Hyundai in Nošovice reports last year’s profit fell by 3.18 billion to 4.2 billion crowns and sales by 9.18 billion to 113.96 billion crowns. The decrease in profit represents 43 percent, in sales, it is 7.5 percent. The decrease in the economic result was caused mainly by the coronavirus pandemic. Hyundai Motor Manufacturing Czech (HMMC) stated this in an annual report published in the Collection of Documents.

HMMC President Cheolseung Baek said the pandemic had fundamentally affected demand for the company’s products. “In the first half of the year, showrooms closed in all our major markets and, like other automakers, were forced to cut production in the spring months. Instead of the planned 303,500 cars, we produced 21 percent less in 2020, or 238,750 vehicles,”

According to him, last year was exceptional and positive for the company thanks to the complete change of the product line. In March, the production of the purely electric car Kona began in the Silesian factory, which became the first electric car of the new generation produced in the Czech Republic. This was followed by a facelift of all body versions of the i30 model, in October the production of a new generation of Hyundai Tucson’s flagship model began, and from November the production of the Kona model in an innovated version.

“Such a large change in the production program is unparalleled in the history of our company and would be a great challenge at a time other than the year affected by the coronavirus pandemic. I am proud that despite the huge complications caused by covid-19, they managed the projects on the originally planned dates, “said the president.

The factory in Nošovice is the only Hyundai production plant in the European Union. It produces up to 1400 cars a day. The plant has approximately 3,200 employees, and another 8,700 people work for its direct suppliers.

The main market for Nošovice cars remains in Europe and the Middle East, most cars went to Germany last year. “As early as the end of 2020, almost half of the cars produced at HMMC were electrified – whether mild-hybrid, hybrid, or pure electric,” said the president.

In addition to passenger cars, Nošovice also manufactures two types of six-speed gearboxes. They are used not only for cars that are produced there but are also exported to the plant in St. Petersburg, Russia, to Slovakia to Kia’s sister plant in Žilina, and since last year also to the HAOS plant in Turkey.

The coronavirus pandemic affects production this year as well, and the carmaker expects a return to the volume of production as before the pandemic next year. However, the company relies on its new or improved models last year. “The plan for 2021 was therefore set at a level 15 percent higher than the number of cars produced in 2020, specifically 275,000 vehicles,” the company said.