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The Economy of Czechia

Foreign Investment and the Car Industry

Foreign investors, especially German carmakers, transformed Czech industry, and Škoda Auto, owned by Volkswagen, became a flagship.

Cars became the engine.

Škoda

Škoda Auto, bought by Volkswagen in the 1990s, is one of Czechia’s biggest firms.

Other plants

Hyundai and Toyota-Peugeot-Citroën factories also operate.

Suppliers

A network of component makers grew around the assembly plants.

Share

Cars and parts make up a large share of exports.

A supply chain

Local firms produce seats and wiring for cars assembled in Mladá Boleslav.

Ignoring dependence on one industry

A car slump hits the whole economy.

Key takeaways
  • Foreign firms transformed industry.
  • Škoda is a Volkswagen brand.
  • Suppliers cluster around plants.
  • Cars dominate exports.
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