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Hyundai Launches ix35 in Czech Republic; Third Shift Planned

Executive Summary

Original plans called for the model’s Czech Job One in early September, but Hyundai has managed to launch output two months earlier.

VIENNA – Serial production of the Hyundai ix35 cross/utility vehicle is under way at the Hyundai Motor Mfg. Czech plant in Nosovice, Czech Republic.

Originally, the European production of the ix35, known as the Tucson in the U.S., started in January 2010 at the Kia Motors Slovakia plant in Teplicka nad Vahom in neighboring Slovakia.

However, because demand for the ix35 and Kia Sportage CUV, also manufactured at Kia’s Slovakia plant, is significantly higher than sales of the Hyundai ix20 and Kia Venga B-segment multipurpose vehicles made by Hyundai in the Czech Republic, the auto makers decided to swap sourcing of the Hyundai ix35 and Kia Venga.

Kia phased out production of the Hyundai ix35 in early June. Original plans called for the model’s Czech Job One in early September, but Hyundai has managed to launch output two months earlier.

With the transfer, Hyundai hopes to quickly work orders down for the ix35. European customers currently must wait up to nine months for the CUV.

The Czech Hyundai plant, which produces the Hyundai i30 hatchbacks and i30cw wagons, as well as the ix20 and ix35 models, operates on two shifts. It will add a third shift Oct. 1 to reach its full capacity of 300,000 cars a year.

The auto maker is recruiting more than 600 new employees for the third shift. Additional jobs will be created at supplier operations.

As a part of the preparations for the production increase, the Hyundai plant launched serial output on its second press this spring. Like the first press, the new Hyundai Rotem transfer press uses 5,400 tons (4,900 t) of pressure to stamp panels. With the two stamping lines, the Czech Hyundai plant can produce body panels for 400,000 cars a year.

The company also started building its second transmission plant, but completion will be delayed as a result of a protest against its construction by a family living close to the facility and a citizens’ action group.

Hyundai originally planned to begin construction in April 2010, with completion targeted for April 2011. The current plan calls for start of serial production Aug. 1, 2012.

With the start of the third shift planned for this October, Hyundai temporarily will supplement local transmission production with imports from South Korea.

The overall capacity of both transmission shops will reach 530,000 units per year on three shifts.

Czech-made transmissions also are shipped to the Slovak Kia plant and to Hyundai Motor Mfg. Rus factory in St. Petersburg, Russia.

Hyundai began serial production at its Czech facility in fall 2008. The plant manufactured 200,135 vehicles last year.

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