Mission Statement

Automotive Parts and Services Trade Mission

Budapest, Hungary and Warsaw, Poland
Optional spin-off to Bratislava, Slovakia

March 17-21, 2003

Mission Description:

The United States Department of Commerce office of Export Promotion Services is organizing an Automotive Parts and Services Trade Mission to Budapest, Hungary and Warsaw, Poland with an optional spin-off to Bratislava, Slovakia March 17-21, 2003. The Trade Mission will target the U.S. automotive industry, including original equipment manufacturers (OEMs), aftermarket parts manufacturers, and composite materials and electronic component manufacturers. The focus of the delegation will be to match U.S. companies with qualified agents, distributors, representatives, licensees, and joint venture partners in the automotive industry.

Commercial Setting:

Hungary

A high demand exists for less expensive, medium quality replacement parts that match both the purchasing power of owners and the average condition of their vehicles. Almost a million cars are maintained on a do-it-yourself basis or at local independent garages. Because of the relatively high average age (12 years) and the poor technical condition of the Hungarian vehicle fleet, most of the imported car parts and equipment products are destined for the low-cost after-market, although more and more parts are imported by the local automotive manufacturers for purposes of processing and re-export.

The parts aftermarket has consolidated in recent years. Today a handful of auto parts wholesalers dominate 80 percent of the Hungarian market. Most parts are sold through the wholesale-retail-garage networks, since the popularity of independent garages has grown significantly over the past five years. They can offer cheaper service for better prices, which are important for the price-conscious buyers in Hungary.

Poland

Poland has a population of 39 million people with over 9.9 million passenger cars. This number is likely to grow to15 million by 2010. The number of cars has been growing significantly over the last ten years. Poles buy much smaller cars than Americans do and tend to keep them much longer. Unlike in the U.S., cars in Poland are almost exclusively equipped with manual gearboxes and diesel fuel engines. In recent years, Poland has attracted significant foreign capital that has invested in car parts production in Poland including Delphi, Dana, Gates, Suzuki, Goodyear and Michelin. The annual market for car parts and maintenance products was estimated at $2.4 billion in 2001.

Poland is expected to be among the next group of countries admitted to the European Union. Once admitted, tariffs on U.S. produced parts will reflect EU levels.

Slovak Republic

The automotive sector is one of the fastest growing in Slovakia in recent years. Domestic automotive production has increased significantly, improving prospects for parts suppliers. And the automotive after-market appears to be thriving and it is expected that there will be a growing market for garage equipment and diagnostic tools. There are also a number of companies seeking U.S. partners for manufacturing.

Mission Goals:

The Trade Mission's goal is to gain first-hand market information and provide access to key government officials and potential business partners for new-to-market, and/or new-to-export U.S. automotive firms desiring to enter these Eastern European markets.

Mission Scenario:

Participants will spend two days in Hungary, two days in Poland, with an optional one day stop in Slovakia. At each stop, the Commercial Service will provide an extensive market briefing, schedule one-on-one appointments with potential business partners for each participant, and arrange a reception to introduce the participants to key business and government officials in the automotive sector.

Timetable:

 

The Trade Mission will be promoted through the following venues: the Export Assistance Centers and International Trade Administration Industry Sector Teams; the Federal Register; relevant trade publications; relevant trade associations; past Matchmaker and Commerce trade mission participants; various in-house and purchased industry lists, and on ITA's Internet home page.
Criteria for Participation:

• Relevance of the company's business line to mission goals
  
• Potential for business in the selected markets
  
• Timeliness of the company's completed application, participation agreement, and payment of the mission participation fees
  
• Provision of adequate information on the company's products and/or services and communication of the company's primary objectives to facilitate appropriate matching with potential business partners
  
• Certification that the company's products and/or services are manufactured or produced in the United States or if manufactured/produced outside of the United States, the product/service must be marketed under the name of a U.S. firm and have U.S. content representing at least 51 percent of the value of the finished good or service.

Any partisan political activities of an applicant, including political contributions, will be entirely irrelevant to the selection process.
The Trade Mission will target 10 companies. The fee to participate will be $2,500 for Hungary and Poland and $400 for Slovakia. Recruitment will begin immediately and will close January 24, 2003, seven weeks prior to the start of the mission. Applications received after that date will be considered only if space and scheduling constraints permit.

Contact Information:

Monica McFarlane, Project Manager
Export Promotion Services
U.S. Department of Commerce, Room 2012
Washington, D.C. 20230
Tel: (202) 482-3364/Fax: (202) 482-0178
Email: Monica.mcfarlane@mail.doc.gov
Website: http://www.usatrade.gov