|Sector:||Business analytics | Public Policy|
|Client:||Hyundai Motor Company|
|Published:||13 January, 2016|
|Tagged:||analysis of economic developments EC/EEA qualitative analysis|
The report finds that over 308,000 people owe their jobs to the Hyundai and Kia business operations across the continent. The workforce employed directly by Hyundai and Kia and supported by their operations in the upstream and downstream markets consists of 78,000 individuals. In addition, 230,000 European workers are employed due to demand induced by the presence of Hyundai and Kia.
Including customs duties, sales and corporation taxes, Hyundai and Kia contribute a total of €1.8 billion in taxes to European governments.
Hyundai and Kia have invested in two large manufacturing facilities in the EU, one in the Czech Republic (Nošovice) and one in Slovakia (Žilina). Manufacturing output in the two European plants has increased rapidly. Hyundai Motor Manufacturing Czech (HMMC) went from producing 251,000 vehicles in 2011 to 300,000 vehicles in 2012 and a current (2015) capacity of 330,000 units per year. Kia Motors Slovakia (KMS), one of the few plants in the world that has the capacity to manufacture up to eight different models on the same line, increased plant production over 2013-14 by 3.5%. In 2014 71% of Hyundai and Kia vehicles sold in the EU were produced in manufacturing plants in the Czech Republic, Slovakia and Turkey. 84% of Hyundai vehicles sold in the EU were produced in the Czech Republic and Turkey while 56% of Kia vehicles sold in the EU were produced locally in Slovakia.
The combined Gross Value Added (GVA) of Hyundai and Kia amounts to €4.9 billion. This figure includes the GVA of external suppliers and independent retailers of the two brands. GVA measures an economic entity’s contribution to gross domestic product and is the value of the goods and services produced by the company net of input costs.