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Radio Prague reported Monday that Hyundai has agreed with the Czech Republic on a plan to invest up to $1.2 billion towards a new factory in Nosovice. The deal was confirmed by Hyundai Motor VP In-Seo Kim, and marks the end of a protracted negotiation for the site of the automaker's first European factory.

The new facility will come online in 2008, employing 3,000 workers and with a capacity of 300,000 vehicles per year.

Reuters reports that the deal includes about $173 million in direct state support, not including tax breaks.

Expanding overseas production is a key strategic move for Hyundai, which has been hurt by the recent strength of South Korea's currency. On the Czech side of the equation, its surging auto industry powered the country's economy to a record 6-percent growth last year.

[Sources: Radio Prague, Reuters, Hyundai]

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    • 1 Second Ago
      • 9 Years Ago
      Thanks, mom, I knew you'd understand.

      GORT, where are you? I've got a little job for you.
      • 9 Years Ago
      Wow! Czech it out!

      Sorry, I just couldn't resist...

      Maybe we in the US will see some Hyundai Click (Getz) B-class (Honda Jazz/Fit competitors) from the Czech plant, since the Won and Dollar are not on friendly exchange rate terms right now?

      There's even a hybrid version of the Click / Getz.

      Hey, Hyundai? PLEASE don't sell the thing here as the Getz. Sell it as the Click. Getz is just a dumb name, whereas Click at least has a youthful sound to it - like in this car really Clicks. Or maybe I'm crazy. Getz also sounds remotely "greedy" or is it my imagination?

      I was offended when Honda brought out the Fit (should have used the Jazz name) in the US as I had a cousin who died from epileptic fits. Yeah, I know the word Fit has health connotations to people, but geez... get an English dictionary out you foreign car companies.