The growth, development and investment potential of the industry throughout the entire Central and Eastern European region will be the subject of the AutoCEE conference that will take place in Prague Oct. 4–7 at the Hotel InterContinental. Now in its seventh year, the conference has become an important gathering point for global car manufacturers, auto component suppliers, key industry executives and government players.

This year, attendees will have an opportunity to learn about the latest industry developments and meet over 350 executives from TPCA Kolín, PSA Trnava, General Motors, Volkswagon, Fiat, Dacia and many other companies. Highlights of the event include a first in AutoCEE history, a keynote address from In-Kyu Bae, president and CEO of Kia Motors in Slovakia. Last year Kia successfully opened its first European factory, in Žilina. It seems a good match — Kia is currently the fastest-growing car brand in the world, and Slovakia is becoming a hot spot for auto manufacturers, with Volkswagen building a plant in Bratislava and Peugeot in Trnava. Both the Czech Republic and Slovakia benefit from competitive production and skilled-labor costs, as well as a long tradition of automotive production.

AutoCEE will also host an awards ceremony honoring the most successful and profitable automotive projects in the region, including Project of the Year, Most Innovative Product of the Year and Central European Automotive Executive of the Year.

One of the main topics at this year's conference is expected to be the growth of first- and second-tier component suppliers and manufacturers in Central and Eastern Europe. As the Czech and Slovak republics in particular continue to attract global car manufacturers, component manufacturers are following in their wake. In the past, first-tier suppliers typically started out domestically owned and then were sold to foreign investors or turned into foreign-domestic joint ventures. Nowadays, foreign component companies are establishing their own operations in the region.

"Japanese and now Korean component companies have started to become established in the Czech and Slovak republics," said Andrew Quirke, an automotive industry specialist and a managing director of the Carlife Lifeco Group. The past five years, he added, "have been characterized by the investment of second- and third-tier suppliers, who supply the first-tier companies with parts for their subcomponents, which in turn are supplied to the manufacturer."

The overall effect is that suppliers in this region are moving closer to manufacturers — an important factor in the auto industry, where having components suppliers nearby means significant savings in time and delivery expenses. "The manufacturers are trying to bring the suppliers as close as possible," said Quirke.

Taking a closer look at what will be discussed at the conference, Jan Novák, head of regional purchasing for Škoda Auto, will present Škoda's plans and strategy for supplier development and sourcing. It's a key part of Škoda's plan to reach a production level of 600,000 units within the next two years.

Every industry needs financial services providers, and one of the main sponsors of AutoCEE 2005 in Prague is Ernst and Young, the international accounting and consulting firm. "We know the automotive industry, and we also offer access to a global network of industry experts in all the major automotive industry locations around the world," said Peter Chrenko, automotive industry leader for Central Europe–South.