Prague - Škoda Auto in Mladá Boleslav, Hyundai in Nošovice and TPCA in Kolín would welcome if the Czech government took inspiration from its German neighbour and started giving people subsidies to buy new cars.
"It would certainly boost sales," Hyundai spokesman Petr Vaněk told Aktuálně.cz. The representatives of two other car producers, which are feeling the impact of the global financial crisis, share this view.
In Germany as of last week, the government guarantees that anyone interested in buying a new car will get as much as EUR 2.5 thousand from the state if the person hands over his old car for ecological liquidaton. The subsidies for new cars, are part of Germany's second emergency plan to help boost the economy.
The Czech Ministry of Industry and Trade is now trying to assess whether a similar system could work here. "For now it's too early to talk about any details," ministry spokesman Radek Bartovský told Aktuálně.cz
Any boost will help
The representatives of all three car makers say any support will help increase the production of new cars again, something the Czech economy depends on.
Governments all over the world are doing this," said Hyundai's Petr Vaněk. He added that in reaction to the financial crisis, the company has as of this January extended the warranty on new cars from two to five years.
At the same time, it wants to offer two new modes earlier than planned and thus catch customers' interest. "Our parent company may be in Korea, but we are a Czech company, with 98% of our employees Czech citizens.
TPCA spokesman Radek Kňava said export is key for the Kolín based car producer. "In the Czech republic we sell what we would produce with one-day work weeks. This is less than 1,500 cars. But we would still welcome state subsidies," Kňava told Aktuálně.cz
We can go even lower
The most popular Hyundai model manufactured in the Czech Republic is the i30, which costs about CZK 330,000 With state subsidies, this price could go down to CZK 300,000.
The smaller Hyundai Getz will enter the market now with the most basic model costing around CZK 220,000. State subsidies would reduce this amount to CZK 200,000.
Years ago, Škoda auto organised the "Trade in the old for the new" initiative, aimed to boost new car sales. The company bought old Škodas from customers at an estimated price and sold its new cars at a discount. Thousands of drivers arrived in car salons.
There was quite a lot of interest in this," Škoda Auto spokesman Jaroslav Černý told Aktuálně.cz.
If the state decides to subsidise the sale of new cars, Černý says Škoda could help by bringing down some of its prices.
"We could take part in making new cars more affordable," Škoda Auto's spokesman Jaroslav Černý.
Adapted and republished by Prague Daily Monitor.
