73% Profit Down in 2011 for Czech Toyota-Peugeot image

Czech Toyota-Peugeot recently declared that its 2011 net profit was down 73% due to the lower demand for its small city cars, deciding to freeze wages for this year.

“TPCA is also currently working on transferring some of its core workers to sister companies,” the company said in a statement, referring to Peugeot’s Slovakia-based units.

The net profit for 2011 was CZK370.55 million ($20.1 million), down from 2010 CZK1.39 billion, and revenue fell 23% on the year to CZK39.7 billion. The Peugeot 101, Toyota Aygo and Citroen C1 three- and five-door small cars were 270,705 units last year, down 9% from 295,712.

There are three carmakers based in Czech Republic, but only TPCA, whose economy is centered on automobile and car parts exports, saw a sale decrease. Volkswagen AG’s unit Skoda Auto AS and Hyundai Motor Co. Ltd., have declared soaring sales amid growing demand for their models.

TPCA also stated that it will reduce the working week to from 6 to 4 days, and daily shifts from 3 to 2, beginning from May, as a measure to fight the slacking demand for its models, and reduce the overall output by about 20% on the year to 221,000 units.