Hyundai Motors is to swap production of two models between its Czech factory and a Kia Motors plant in neighbouring Slovakia.

The Korea Herald, citing Kia spokesman Dusan Dvorak said the factory near Zilina, Northern Slovakia, will take over production of Venga compact cars, which Hyundai currently assembles in the Czech Republic while production of Hyundai’s new ix35 SUVs will move to Slovakia from its Czech plant located in Nosovice.

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The two factories already produce some parts for each other and the reshuffle will help rebalance capacity utilisation between the two factories, Dvorak told the paper from Zilina. The Hyundai group expects demand for SUVs to continue growing while interest in compact cars stagnates, he said.

Kia also produces its Ceed compact cars and Sportage SUVs in Slovakia while Hyundai’s assembles the i30 (which shares platform and parts with the Ceed) and the ix20 (closely related to the Venga) in the Czech Republic.

Both factories are capable of producing 300,000 cars a year.

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