Blog: Dave LeggettHyundai's European location decision

Dave Leggett | 19 February 2004

Regarding Hyundai's central European plant location decision, maybe the wind is currently blowing in favour of Poland rather than Slovakia. If the basic costs and incentives factors leave the rival sites pretty even (or perhaps even favour Slovakia marginally), then looking at long-term strategic factors such as level of economic development and the business environment would likely favour Poland.

One of the reasons for the break-up of the old Czechoslovakia into the separate nations of the Czech Republic and Slovakia was the very tensions formed by the uneven economic performance and reform pace of the then two regions. Slovakia, I'm reliably informed, has retained more of the old Soviet-style mentality in its business culture than has Poland. That suggests that it will have a lower rate of economic growth in the long run, but it could also reinforce some concerns about the country's long-term level of economic integration with its neighbours - of critical importance to Hyundai in developing its automotive supplier base.


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