In May, 11-member group of Military and Air Force Attachés from Slovakia, France, the UK, Germany, Greece, Egypt, China, Vietnam, India, Romania and Ukraine together with their Czech entourage visited the TATRA, a.s. company. Under the lead of Sales Director General (ret.) Pavel Štefka more………

Tatra has been slow to publish the number of trucks produced in 2009.  As 2009 statistics are being published now, it now becomes  clear that Tatra manufactured just 808 trucks last year. 340 units were sold in Tara’s home country, while 652 units were exported, meaning that Tatra got rid of at least a part of its surplusses.

http://www.autosap.cz/default2.asp?page=%7B4A86501A-BBD5-4B8F-AE57-397BC8051C9A%7D

German article:

http://www.tschechien-online.org/news/16619-rekordzahlen-tschechiens-kfz-produktion/

UPDATE:  

At the March 26 general meeting of Tatra’s shareholders, one agreed to give the complete company (i.e. all shares) into deposit. Thanks to this they could sign new credit contracts with banks.

According to http://www.rozhlas.cz/zpravy/domaciekonomika/_zprava/712453 the shareholders also agreed not to comment on the latest shareholders’meeting.

The Prague stock exchange reacted positively on the friday news with Tatra shares rising to Kcs 140.00 from Kcs 134.00. See  http://www.rmsystem.cz/akcie-121-tatra

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400 former employees to return by April 1

reduction of working hours to end by April 1

CTK  Released: 26.03.2010, 12:42 | updated: 26.03.2010 13:02 (automatic translation)

Kopřivnice (Novojičínsko) – Shareholders Tatry now decided to pledge the company úvěrujícím banks. Reuters confirmed this union representative Paul Baron. Automaker by economic newspaper owes banks more than one billion crowns from the original 1.9 billion CZK credit. Banks, therefore, called for greater guarantees for their loans.

According to the manufacturer’s unionized truck 1 April runs back to full and take back most of the previously released about 500 people. Due to the economic crisis and lack of orders, production was still limited in the Tatra.

For Kopřivnice Tatra hypothecation is nothing new because in the past the company existed. Remove car according to company representatives in any way affect. “Influenced by it, if it had not done so. Banks could begin to make trouble,” said one of the participants of today’s meeting. Union representative would not comment on the arrest enterprise. According to him, voted to pledge 97 percent of the company shareholders.

Banks, which are based on economic noviny (HN) domestic CSOB and French Calyon, had demanded greater guarantees for their loans. Calyon is now in the pledge of real estate and shares Tatry its subsidiaries.

“Like many other companies in this difficult time we had to conclude a new agreement with banks. Their arrest is part of the enterprise,” said HN previously CEO and minority shareholder of Tatra Ronald Adams.

According to representatives of trade unions is good news that once full production starts. “From April 1 Tatra goes back to full operation. This means that the total period of uncertainty has ended. We should raise malilinko should begin to work normally,” said Baron. In the crisis period, according to the majority of unionized employees Tatry worked part-time work – 30 hours per week, and obírala 80 percent of wages.

Carmaker released last fall, about 500 people, with the promise that from 1 April boards back. According to union representative may be that some returnees may not be finally accepted. Return should be about 400 people. “Now we evaluate whether they will all re-employed. Evaluates it towards the procurement and production to be. Some have found other jobs, they are back in business,” said trade unionist.

In 2008, the results of the Tatry collided strong crown and then it hit the global market crash trucks. Before last, when the company earned 5.9 billion crowns, reported a loss of 572 million crowns. Tatra sales last year fell by 45 percent. Adams had previously described last year for manufacturers of trucks as catastrophic. Economic result has disclosed.

More news to follow……

More news is emerging on Tatra’s financial condition:

Monday, March 22, 2010, (Czech Business Weeky):

 Shareholders of debt-saddled Tatra truck maker will have to put the entire company up as collateral to loan-providing banks, the daily Hospodářské noviny (HN) reported. The Tatra general meeting, which will take place at the end of March, is to approve this step, the daily said, adding that the lending banks are Czech bank Československá obchodní banka (ČSOB) and French bank Calyon, which demand higher guarantees for their loans. Calyon already has Tatra’s immovables and stocks of Tatra subsidiaries as collateral. Tatra is still to pay over Kč 1 billion of the original loan worth Kč 1.9 billion to the banks.

UPDATE

(Hospodářské noviny)

Owners must make a pledge to the banks Tatra

CSOB and French Calyon demand higher guarantees for their loans.  Tatra is paying nezpožďuje.  But he has yet to pay a billion.
Kopřivnice Tatra shareholders are forced to put the entire company to banks to pledge.  In late March, the General Meeting held to approve this step.
 The reason?  Lending banks, which are referred to the information available domestic CSOB and French Calyon, demand higher guarantees for their loans.  Calyon has already pledged property Mountains and shares its subsidiaries.
 ”Like many other companies in this difficult time we had to conclude a new agreement with banks. Their arrest is part of the company,” said CEO and minority shareholder of Tatra Ronald Adams in an e-mail interview with the paper. 
 

Warning auditors
According to Adams Tatra from the original 1.9 billion CZK of credit from banks is left to pay a little more than a billion crowns.  Director points out that the car of their debts to banks, despite the difficulties caused by the crisis, the time: “We never neopozdili and I see no reason why we should not continue to pay according to schedule.”

That does not mean that the Tatra no problems with financing.  In the spring of last year, KPMG warned that verify accounts of the year 2008 that the company “does not have sufficient volume of liquid assets to be able to ensure timely payment of obligations.”  According to KPMG without new credit agreements, “there is substantial uncertainty” that the company will be able to continue in business.

General Meeting of the company pledge to the banks undoubtedly permit.  Tatra safely controlled Tatra Holdings (the strongest it has a stake in India’s Vectra, the American investor Sam Eyde and Belgian KBC), the other shareholders hold just over eight percent.

Sales fell half
Tatra has not yet published any information on the economy last year.  What will be proud of.  Already in 2008, drove strong results of the Mountains crown, and then it hit the global market crash with a truck.  In its “year of the consolidated loss exceeded 700 million.  Last year, the automotive manufacturer said sales fell from nearly six billion by half.
 ”Disclose the results until an audit is not finished. But of course for us last year will be a loss,” said Adams.  Rumors of alleged půlmiliardové loss, which said last year’s car expel Adams commented.

Nearest prospects are not favorable: “Orders for the first half are still small,” says Adams.
At the end of last year, while Tatra sent the last three decades off-road vehicles, which were part of a large contract for 588 cars for 2.7 billion crowns for the Czech army.  Supplies for Tatra in crisis meant security.  Demand for civilian production, heavy vehicles mainly for construction and mining companies, is still low.  And to get up until neožije investment activity.  “But they think that we are able to produce 1500 cars this year, and it will be better this year than last,” Adams hopes.  “We will be profitable in December and January, we noticed a small profit,” he added.

Work three days a week
From the first start dubna workers in Tatra fully working again.  The last five months, the undertaking goes only to 80 percent, production runs three days a week in desetihodinových innings.  Outages persist for more than a year, last year in some months of operation he ran just three weeks.  Tatra also released 1,400 people – over half the workforce.

Adams promises a lot of cooperation with U.S. corporations Navistar.  With its military division is developing a new type of Tatra truck.  “Cooperation progresses very quickly. The first two common cars, bearing the brand Navistaru the Tatras are finished. Will build on the world Eurosatory exhibition in June in Paris.”  In addition, said hopefully develops contract negotiations for the Army of the United Arab Emirates.  “The worst is behind us, we overcame a devastating crisis,” says Adams.

Unions believe the company
Similarly, Paul sees the future Baron, head of the union Mountains, which sit on the Supervisory Board: “According to the results for January and February is doing well now four Tatra, as well as subsidiary companies. Foundry to take in people, the parent Tatra recall some previously dismissed workers back to production.  Baron Adams also agree that the first half will be difficult to Tatra, a real recovery in demand will come first in the second half. 

TATRA, given its date of inception in 1850, ranks among the world’s oldest car company.  The first car produced as early as 1897.  The production of coaches but it has begun in 1850.  In the subsequent glory automobile designer responsible Ledwinka Hans, who worked in the company 48 years.

Production
Even in the 80th  Tatra years produced 15 thousand cars per year.  Then the market collapsed, and until two years ago, Tatra was given to three thousand.  Last year produced a thousand chariots.

Crisis
On the hard-hit carmaker Tatra crisis.  Half of the 4,400 employees had to leave the company.  Production last year fell almost a third of the level of 2007.

The Tatra Works, which is drowning in debt, have to negotiate with loan banks once again. On March 26, a General Shareholders Meeting will be held to approve this.

CSOB and French Crédit Agricole Corporate and Investment Bank (formerly Calyon), which are the basis of available information, are asking more guarantees for their loans. Calyon already has  Tatra real estate and shares in Tatra subsidiaries, but is expected to demand bigger gurantees.

Tatra has been hit hard by the World economic crisis and has not disclosed its 2009 figures  but it’s obvious that once again the results have ended in a loss. Already in 2008 the results were heavily influenced by the strong Czech crown, soon followed by the crash of the global truck market.

Agenda extraordinary shareholders meeting: http://www.tatra.cz/web_cz/zajimavosti/val_hromada_2010.htm

On March 1, 2010 TATRA, a.s. opened its Customer Center in Kopřivnice. This is a significant step to improve after-sales services provided to TATRA truck owners and users, particularly from the Moravian-Silesian region and the neighboring Zlín region. As Tatra Sales Director Pavel Štefka said during the inauguration, customer satisfaction comes first. We have to be able to offer our customers comprehensive professional services in order that they will come back to Kopřivnice knowing that they will find here everything they need and on a high professional level.
The Customer Center consists of Truck Service, Service School, Warranty Service and Service Technology Departments and a Service Network Manager’s office. These services altogether are provided by more than thirty experienced specialists, technicians and mechanics ready to support and assist TATRA vehicle users both in the area of vehicle service and spare part sale, and in the area of training drivers and maintenance staff of our trucks. Now, customers can find services under the same roof and directly with Tatra experts; so far, a part of these activities has been provided by a different company.
Among significant customers of the center there is the Army of the Czech Republic, because right here it is where warranty, after warranty service and technical maintenance activities of the T 810 vehicles, purchased by the Czech Army within the contract, are provided. But the center’s important customers, of course, are also both small and big construction companies, fire brigades, companies providing road maintenance, etc. We believe that the Customer Center becomes well known and it will not only be used by local TATRA truck users but also by local companies operating TATRA vehicles.

(Source: http://www.tatra.cz/web_en/zajimavosti/zak_centrum/zak_centrum_en.htm)

Tatra chief executive describes last year as ‘disastrous’ for the truck manufacturing industry
Posted: February 24, 2010

By Philip Heijmans

Czech truck maker Tatra announced an estimated 2.6 billion Kč ($138 million) drop in sales for 2009 compared with the year before – a 45 percent decrease.

Tatra Chief Executive Ronald Adams told The Prague Post that 2009 was “disastrous” for truck makers. “The global financial crisis came quickly, and we had very little chance to prepare for it. It was a very painful crisis for the truck manufacturing industry,” he said.

Heavy truck sales in Europe were down 44 percent in 2009 according to a market analysis by auto interest group Verband der Automobilindustrie (VDA). New truck registrations dropped 55 percent in the Czech Republic for 2009 compared with 2008, according to PricewaterhouseCoopers, with domestic production down 60 percent and German production down 66 percent, the lowest in more than 30 years.

Analysts say the abysmal drop in sales last year was an industry standard among truck manufacturers.

“I think Tatra’s results are comparable with other truck producers,” said Cyrrus analyst Karel Potměšil. “The whole market was depressed due to economic decline, and all producers reported decreases in their sales or new orders by about one half during 2009.”

As a result, Tatra had to lay off almost 1,400 workers, bringing its work force down to 2,300 employees at its plant in Kopřivnice.

“The crisis most directly affected production workers because, without orders to build products, we have no work for them to do, and we cannot keep them around,” Adams said.

Last year, Tatra wrapped up the last 30 vehicles of a 588-truck deal with the Czech Army, which brought in a total of 2.7 billion Kč. Without further big state orders, Tatra suffered diminished sales. Potměšil believes the government did not do enough to provide subsidies to the troubled truck industry during the crisis.

“This segment wasn’t subsidized at all. There weren’t any programs like the car-scrapping subsidy,” Potměšil said. “Nor were there massive programs seen in Germany or other countries for the industry. … Truck producers were left to their own devices.”

Customer movement also slowed as trucks have longer life spans than passenger cars, and customers, including many fleet managers, simply postponed making purchases until the end of the recession, with European truck producer’s orders down 92 percent last year, according to Adams.

However, Adams believes Tatra has seen its worst days.

“The storm is not over, but the clouds are clearing, and we do see bright spots on the horizon,” he said. “Tatra operated at a net profit for December and January, and our backlog has stopped decreasing.”

Analysts also believe the market is beginning to see an upturn, although it will be a long road to recovery.

“Despite certain positive developments, I do not expect a recovery earlier than by the end of the year or in 2011,” said Jiří Zouhar, an automotive expert at PricewaterhouseCoopers.

For the time being, Tatra will continue to contract operations and costs on the level of orders and is considering divesting its daughter companies.

In the past month, Tatra has expanded its sales interests, tapping into the international market in order to find new buyers in the Russian, Azerbaijan and Australian markets, with Tatra’s Indian business remaining very strong. The company has also established a relationship with U.S. truck company Navistar Defense that could produce results later this year.

“We are also preparing to move into South America, Southeastern Asia, the Middle East and possibly China during 2010,” Adams said.

Philip Heijmans can be reached at
pheijmans@praguepost.com

Koprivnice, Feb 10 (CTK) – Czech lorry maker Tatra registered a year-on-year fall in sales of 45 percent last year owing to the global economic crisis compared with Kc5.9bn sales in 2008. Tatra chief executive Ronald Adams said last year was catastrophic for lorry makers. The company had to lay off almost 1,400 staff in 2009. Adams believes that Tatra has already overcome the most difficult period. It is beginning to see a recovery on important markets such as Russia and Azerbaijan, and believes that sales will increase this year already, Adams said. Tatra had cut costs rapidly, but still sustained big losses, of which around half were accounting reserves which te company created, he said. Tatra does not want to disclose its bottom line for the time being. However, it is very likely that it will post a loss again.

In 2008, the company’s loss reached Kc572m on sales of Kc5.9bn. The year was the best in Tatra’s recent history in terms of sales, according to Adams. Tatra now plans to reduce operations and costs to the level corresponding to the volume of orders and continues to develop new products. According to daily Mlada fronta DNES, crisis manager Vladimir Bail, whom Tatra hired as part of measures to improve its economic results, had to leave the company. Bail was preparing a two-year restructuring plan which, according to him, reckoned with the sale of some subsidiaries. In December last year, Tatra handed over the last 30 military vehicles T810 to the Czech military. The vehicles were part of a Kc2.7bn contract under which Tatra delivered a total of 588 military vehicles within two years to the military.

Among Tatra’s important export territories are Russia, former members of the Commonwealth of Independent States comprising former countries of the Soviet Union, India and the European market. The company has also started to export to Australia in recent years and found new contacts in America. Tatra has since 2006 been under the control of four Czech and foreign investors represented by former supervisory board chairman and current board of directors chairman Ronald Adams. The investors’ company Black River now holds 51 percent of Tatra’s shares. Tatra Holdings owns almost 41 percent of shares and around 8 percent is in the hands of small shareholders. Tatra employed 2,280 people in early 2010 compared with 3,661 in January last year.

Development of Tatra sales and economic results in 2004-2009:

Year 2004 2005 2006 2007 2008 2009

Sales (in Kc bn) 4.0 3.7 4.5 5.9 5.9 3.3*

bottom line (in Kc mil.) 794 5 261 858 -572

source: Tatra

Note: Tatra has not disclosed data for 2009 yet, sales are an estimate derived from percentage decrease compared with 2008

Czech: click here

The two captains on a ship story. Vladimir Bail, a successfull crisis manager, proudly presented by Tatra five monts ago, has left Tatra by the end of January. Though his restructuring plans were accepted, conflicts have arisen between Tatra’s management and Bail about the hiring of other crisis managers. Tatra has decided not to comment on the issue. For more info click here