Since April, the Czech automotive company Tatra has had a new CEO Lukáš Andrýsek. This experienced
industrial manager worked at the Hyundai factory in Nošovice and, for several years, headed Třebon´s DAKOCZ, a manufacturer of braking systems for the underground, trams and trains, which increased its production, sales and profits under his leadership by tens of per cent each year. Now he should do something similar at Tatra: shareholders want production to increase from 1,400 cars a year to 2,500 vehicles.
How challenging is it to increase Tatra’s production to the desired 2,500 vehicles?
Tatra is not a mass product. Almost every vehicle is tailor-made to the customer’s requirements; therefore, it is much more complicated to set up a production and supply chain. That is why we will aim for this goal gradually. This year, we have a target of producing 1,700 vehicles. Next year, we want to reach the number 1,900, and in 2025, we want to surpass 2,000 significantly.
Tatra is perceived not only as a civilian car company, but also as a supplier to armies worldwide, including the Czech one. What was the supply mix, the ratio between civilian and military production, in 2022?
Last year, 40 per cent of the vehicles went to civilians, 10 per cent to firefighters, and 50 per cent of the production went to the military. To be more specific and to focus on significant orders, since last year, we have been working on a project for the Belgian Army, which includes a total of 879 logistics vehicles. For the Czech Army, we are fulfilling contracts for a total of 289 vehicles, and we are also a chassis supplier for some special projects, such as the STARCOM system intended for electronic warfare.
Tatras in the service of Czech firefighters were also very visible in connection with the fire in Hřensko. How are you doing in this segment?
The firefighting segment is my favourite. I am proud that Tatras did the lion’s share of fighting the fire in Hřensko. By the way, we sent a factory service team there at our own expense to take care of the vehicles on site. For the Czech firefighters, we are fulfilling orders for 110 vehicles, with another 77 special firefighting vehicles heading to the German Bundeswehr firefighting units. Finally, I must mention that last year, we also delivered firefighting specials to Ukraine, and the firefighters there are satisfied with them and are demanding more Tatras.
Tatra produces highly specialised heavy vehicles with a unique chassis using a central load-carrying tube and swinging semi-axles. They are certainly unique in their own category, but is it realistic to market 2,500 cars a year worldwide?
Absolutely. Whoever buys a Tatra sees that it is an investment that pays off and continues to order it. This is why we are growing, for example, in Australia, where we are supplying 70 vehicles to the Rio Tinto mining company this year. In addition to this, there was a longterm and fundamental change last year in the security situation due to the Russian invasion of Ukraine . This has increased demand in the military segment in the long term. So there is a potential in the world market and it depends on our ability to take advantage of it.
The Tatra chassis with its central load-carrying tube is a technology that is coincidentally celebrating its centenary this year. Is there still room for improvement? Does it have any innovation potential for the future?
Key technologies in the automotive industry, including electric drives, have been with us since the 19th century. So the central tube chassis is relatively young, and its potential for development is great. This ear, we are introducing a new generation of our key TATRA FORCE range, which has an improved chassis and cab that will be more comfortable, safer and at the same time its low profile stands out. We are also continuing to improve Tatra’s internal combustion engines, which can prospectively run on hydrogen.
What about the electric drive? Some time ago, Tatra announced the development of a vehicle with an electric motor and hydrogen cells…
We intend to present this vehicle as a prototype at the end of this year. It will be based on our predominantly civilian PHOENIX series, which we are also fundamentally upgrading this year. It will have a new cab from our partner DAF and a new set of engines from PACCAR, and, of course, it is optimised for the installation of various alternative types of drives.
Tatra made 7.5 billion last year, and its gross profit was about half a billion. Is this a good result? And will you continue to grow this year?
The year 2023 is marked by production optimisation and investments in technology. Tatra will, of course, be profitable, but it will not necessarily surpass last year’s profit. We are affected by inflation, which we cannot immediately reflect in the price of work in progress.
Last year, you hired hundreds of employees. I assume that given the growth in production you will be hiring this year as well.
There is certainly interest in some shortage occupations: electricians, mechanics or engineers. But we are not planning mass recruitment. We need to increase productivity and invest in technology. Tatra is undergoing a generational change, and employees who have worked for us for decades are leaving. So Tatra will definitely rejuvenate, but it will not significantly increase the total number of its employees.
Thanks to the Tatra, Kopřivnice is also an important tourist destination because it houses two museums – one focused on trucks and the other on passenger cars. Are you planning new projects in the field of industrial history?
The Truck Museum is young, having opened in 2021, and has a very modern exhibition in terms of technology. Our priority now is the Passenger Car Museum, which we want to renovate next year.
Thank you for the interview.
