Japan carmakers to expand European operations

Published: 22 April 2004 y., Thursday
Major Japanese automakers plan to expand their operations in Central and Eastern Europe, with the car market expected to grow following the planned entry of 10 countries in the region into the European Union next month. Toyota Motor Corp., Honda Motor Co., Nissan Motor Co. and Mazda Motor Corp. all expect car sales in the region to increase in 2004 from the previous year, citing the area's solid economic growth and rising demand for automobiles. The European Commission, the executive body of the EU, has forecast that the real gross domestic product of the 10 countries will grow an average 4.1 percent in 2004 and 4.4 percent in 2005, compared with 1.9 percent in 2004 and 2.3 percent in 2005 projected for the 15 EU member states. The May 1 accession into the EU of Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia will create a single market with 450 million consumers, up from the current 378 million. A 25-nation EU will generate a quarter of world GDP, offering a lucrative business environment for Japanese carmakers. It is believed that development funds from Brussels and greater investment from richer states will also stimulate the economies of the 10 countries.
Šaltinis: Kyodo News
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