The Czech Republic, and its quiet automotive giant Skoda, are bucking an economic downturn unfolding in its crucial ally Germany

It depends on Europe. Donald Trump’s rise has undergone a white house in the continental economy and military capabilities. It was not very obvious everywhere than in Germany, an industrial power plant, which is transformed from two years of negative growth.

Now German allies who have lived in their shadows in Europe’s biggest economy remain questions about their own survival. It is most obvious in the east of its neighborhood. Czech Republic:

Volkswagen Group Volkswagen Group is located in Skoda, a calm success story for the Czech Republic, which says a lot about the country’s post-election risks.

The Czech Republic, which is also known as the Czech Republic, built the development of its post-election war in the same way when Germany did a return reunification. The industry, as a share of GDP, has been hovering over 20% over the past 30 years, joining Germany and the western trend of subtchortaria.

One-third of the Czech export leaves for Germany, and 20% of its imports come closest to its closest.

The relations between the Czech Republic and Germany provide the best example of the Czech Republic’s largest company to Volkswagen.

Skoda’s strength

Skoda makes a significant piece of Volkswagen mass, which also contains Audi, Seat, Porsche and Volkswagen brand.

In 2023, 26.5 billion euros increased by $ 26.5 billion, in 2022, a 26% massive increase and almost 10% of the Czech economy.

If it was an independent company, Skoda will be in the best 150 of Fortune 500 Europe as one of the top 10 batteries, and the largest of the largest Czech company.

The cars have not already given the cars in recent years as like his companions under the auspices of a Volkswagen. In the first nine months of 2024, Skoda increased operating profit compared to the same period of 2023, and Volkswagen Group, as a whole, decrease in profits.

During the first nine months of 2024, the group’s profit margin also puts it among all the profitable brands of Volkswagen and at the top of the 5.6% collective group margin.

He said that Skoda, the Chief Economist of the Czech Republic David Havrarenant, “Golden Eggs”, “Golden Egg”, “Golden Egg”, said FortuneA number

The sale of red is overwhelming Europe. About 9 were surrendered to Europe in 2023, and the rest went to the Asia-Pacific Ocean. It seemed to protect the manufacturer from the decline in sales experienced by Volkswagen, which built its dominance in China’s prosperous consumer market, which has been overturned in recent years.

Indeed, by 2024, Skoda has increased its shipments by 6.9%, compared to the 1.4% drop in Volkswagen brand, reflects almost 10% decrease in China last year.

This disagreement spoke more about Volkswagen about disagreements between the Czech Republic and Germany.

The Czech Republic, next to Germany, fought in 2024, GDP decline in 0.3% as a result of Russian energy sanctions.

However, the country is expected to return to the West, 2025 growth forecasts, 2.3%, Germany’s projected growth has almost tripled, international funds reported.

The Czech economy proved for a more attractive business that want to expand their trail. The salaries in the country, for example, are about half of what they are in Germany by lowering import costs.

His wider population also seems more content.

“I would say that the consumer of the Czech Republic is less depressed than the German consumer,” said Anna Batan, the head of the Alien’s economic research. FortuneA number

Internal demand is expected to have a large driver of the Czech GDP growth, reflecting the higher consumer confidence.

But it seems that unshakable bonds between the Czech Republic and Germany continue to threaten the country’s economy.

The obstacles in the Czech Republic

The result of the Czech production was taken to Lockstep with Germany, as the recent of the latter began in 2022.

Ladislav Till, Prague Economics and Business Lecturer, notes that the Czech Republic is about half a million jobs between manufacturers and companies in the supply network.

“So frankly, if anything goes wrong … they are out of business, and this country could technically collapse financially,” Tol said. FortuneA number

Both countries are struggling with the decline investments, creating an obstacle to future growth.

“It’s not really good for those farms, and it doesn’t affect good things for the coming years,” Till said.

One of the primary concerns of Chezyza is the targets of climate overwhelming for the heavy economy. The country has joined Italy in November last year, calling for a rest EU climate rules This will lead to the ban on selling carbon emissions to 2035.

Allianz’s Boata says 2025 is a year of passage of the Americans and their economies. On the one hand, they will need to reimburse the production of their electrical and hybrid vehicles to maintain the environmental regulations. On the other hand, this means that many more competitive markets are being released by cheap Chinese competitors.

“It will also have some impact on the turns of Czech suppliers, which are mainly interconnected with German car producers, not only volumes, but also to the price,” says Boata.

Ing’s Havrlant widely writes about the Czech economy. He says there are four stages of the structural crisis, which must pass the country before politicians can walk.

“You have to know that there is a problem. Second, you have to admit that it is your problem. Third, you have to force yourself to do something. “

The Czech Republic is somewhere in three and four stages when it comes to its automobile sphere, likes the Havldent, even if it is believed that Germany is slaughtered.

As a result, Havrla believes that the Czech economy slowly reopens itself from Germany.

“The books of their orders have been bad for so long that it was always enough to wait until everything better, but it is no longer.

PoliticAl headwinds

The political history in the Czech Republic is also the same as in Germany and, more and more, the rest of the European area.

As in Germany, elections Beckon in 2025.

In Germany, France’s national gathering in France, Italy’s national brothers and reforms in the United Kingdom, the largest economies of Europe, ready to support the worst political parties.

Thus, it is followed by such a jingoist patriotic people, the “Student Populist” party plans to sweep the elections later, in 2025.

It says in Tille that the possible victory of the patriots of Europe will most likely have a positive impact.

Instead, it is the February elections in Germany, which are a threat to the Czech economy.

He worries that the growing effect on the far right side may lead to Volkswagen to target jobs outside Germany, a possible target.

The country hopes that Germany will recognize its “golden egg” and deep partnership, which seems to be its ally.

Editor’s note. An article on this article first appeared at Fortune.com, on January 21, 2025.

This story was originally shown Fortune.com