Czech customs deputy director Jiri Trousil confirmed the pivot is already underway. Ad valorem duty on bulk imports cleared as standard commercial shipments works out far cheaper than the new per-item levy in most product categories. “That is one of the reasons why large e-commerce companies will shift to importing goods in bulk,” he said. Czech customs has not yet seen warehouse plans in the country specifically, but platforms are already operational in Spain, Ireland, and Poland — and Eastern Europe, including the Czech Republic, ranks among the fastest-growing regions for local fulfilment expansion.

The scale of warehouse investment is striking. Shein opened a 740,000 sqm logistics hub near Wroclaw last December, part of a €250 million European infrastructure commitment over five years. Temu intends to fulfill 80% of European orders via local warehouses by year-end, operating 10 self-run EU facilities across Germany, France, Spain, the Netherlands, and Italy. The online giant has already cut air freight to 35% of EU-bound volume, shifting to sea and rail for an estimated 40 to 60% reduction in per-item logistics costs. That model requires large receiving warehouses at port and rail hubs, which you’d think is in the wheelhouse of CEE’s stock of industrial parks.

A further EU-wide customs handling fee — expected at around EUR 2 per declaration line — arrives in November, stacking on top of the July duty. For industrial landlords, this is a structural demand driver that did not exist two years ago: platforms that needed zero European storage now need fulfilment centres close to consumer markets, at scale, and fast.

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You could argue that the real story at Zličín is what the city isn’t building. Prague has tendered a CZK 652 million P+R parking garage (596 spaces, making it about CZK 1.09M per space) on Na Radosti street. That’s a 15-minute walk from Metro B Zličín. Does that make it a P+W+R?

Zdopravy.cz says Prague’s former deputy mayor for transportation Adam Scheinherr calls it the first P+R garage without direct access to public transport. It didn’t have to be this way. In August 2024, Deputy Mayor Zdeněk Hřib killed plans to build a new metro station at the site to leverage existing depot tracks. This would have created seamless car-to-metro transfers.

Metropole’s private highway connection, meanwhile, will integrate with a planned 2,000-space parking garage (CZK 1.334 billion, with the city securing 1,400 spaces). The Institute of Planning and Development notes a second phase — northbound entry from D5 — is essential to fully relieve the chronically jammed Řevnická street. The congestion also blocks bus exits from the metro terminus. No completion timeline has been disclosed for either phase.

So…private capital is building direct motorway access for shoppers, while public funds are deployed to build a car park with no transport access. One solves a problem. The other compounds it.

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The five-pillar plan comes as European automakers face mounting pressure from potential US tariffs threatened by President Donald Trump, growing Asian competition and consumer reluctance to embrace electric vehicles.

“The significance of the automotive industry isn’t just in its numbers. This industry is part of our history and is currently threatened from multiple perspectives,” said Transport Commissioner Apostolos Tzitzikostas at a press conference. “But we must also be pragmatic.”

The automotive sector accounts for about 7% of the European economy and employs roughly 14 million people.

Emission Rule Relief

In a significant concession to manufacturers, the Commission will allow automakers to exceed tougher targets in 2025 and avoid fines by reporting compliance over a three-year period rather than annually. President Ursula von der Leyen’s move follows months of industry pressure.

“Europe’s emission standards for new cars and vans provide long-term certainty for investors. So they remain,” Tzitzikostas told reporters. “But our proposal addresses penalties for 2025. Carbon neutrality reporting will be uniform and companies will have until 2027 to reach emission goals.”

The flexibility could lift earnings by almost €3 billion for Volkswagen, Stellantis and Renault, according to Bloomberg Intelligence. The three automakers combined sell more than half the new vehicles registered in the European Union.

Not everyone supports the change. Volvo Car, which was positioned to be compensated by Mercedes-Benz for helping with CO2 compliance, opposes the action, arguing the industry had years to prepare for stricter standards.

“I don’t think you should change the rules of the game in the middle of the game,” said William Todts, executive director of advocacy group Transport & Environment.

Manufacturers’ Strategic Shifts

The regulatory relief comes as major automakers recalibrate their electric vehicle ambitions.

Volkswagen began walking back its EVs-or-bust strategy after replacing former CEO Herbert Diess with Oliver Blume in 2022. Blume scrapped plans for a new €2 billion EV factory in Wolfsburg, Germany, and the company’s namesake brand laid plans for more hybrid models as demand for fully electric cars slowed.

Similarly, Stellantis adjusted its approach following former CEO Carlos Tavares’ resignation in December. The manufacturer has been rushing to expand its lineup of hybrids, and Maserati recently abandoned plans for an all-electric supercar.

Blume welcomed the Commission’s plan, calling it “a great opportunity in terms of aligning climate protection, competitiveness and economic progress in this challenging geopolitical situation.”

Battery Production Boost

The Commission’s action plan includes €1.8 billion from the Innovation Fund for EU battery production, acknowledging that batteries represent 30-40% of an electric vehicle’s value.

“To be competitive, Europe must be able to manufacture batteries itself. The Critical Materials Center will offer manufacturers access to raw materials at low costs,” Tzitzikostas explained.

The Commission will establish an entity to secure access to battery raw materials, crucial for reducing Europe’s strategic dependencies in the EV supply chain.

Central Europe’s Vulnerability

Central European countries could be particularly vulnerable to US tariffs. Czech Republic, where exports account for 69% of production, and Slovakia, with 92%, would be among the hardest hit.

According to S&P Global, when the Trump administration begins collecting these tariffs, they will likely restrict economic growth throughout Central Europe, worsening current budget problems.

“Changes in global demand and geopolitical shifts from recent weeks are leading to the closure of European car factories,” Tzitzikostas noted.

Autonomous Driving Initiative

The plan positions autonomous driving as a potential area where Europe could gain competitive advantage, with the creation of cross-border testing centers.

“No European country currently has a plan for autonomous vehicles. China and the US do,” Tzitzikostas said. “Now is the time to make this our greatest strength and unify national legislation so we can implement this technology throughout the Union.”

Electric vehicles currently represent 15% of new car sales in Europe, a figure the Commission wants to increase through consumer incentives and support for car-sharing companies with zero-emission vehicles.

The comprehensive plan reflects the Commission’s attempt to balance climate goals with economic realities, providing relief to an industry that’s struggling with the transition to electrification while maintaining its long-term vision for a carbon-neutral future.

The Commission has also announced it will begin a review of the overall goal of selling only emissions-free new cars in Europe from 2035 in the second half of this year, earlier than originally planned.

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Welt am Sonntag writes that VW will end the geographic division of brands, which has proven inefficient. Instead, each factory will be assigned just enough work to them just busy enough. Škoda will be the flagship for combustion engine cars and will reportedly see its output limited to five or six (gas-powered) models. Its electric models will likely be built outside the country. In fact, the Czech Republic is unique within the Volkswagen universe in that for the most part, only Škoda vehicles are produced in Czech factories. That looks like another item that will be tossed into the dustbin of managerial history.

What does that mean for VW’s gigantic battery factory that the Czech state began its last-minute planning for 12 months ago? Most likely, it means that Spain will get it because its government decided during Covid to bet everything on technologies of the future. By betting its own money, Spain also earned huge contributions from the European Union, putting it in the driver’s seat for the battery factory. Since the United States has also decided to support green technologies with hard cash, it looks like VW will build another battery factory there.

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He would do well to inform the city of Plzeň and the municipalities around the airport, because they’ve . . .

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Not really. Or to put it more precisely, not nearly as much as the Covid crisis did. That’s the clear picture you get if you look at . . .

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