The EU enlargement in May 2004 saw a number of former Eastern Bloc states join the European community as full members. Countries such as the Czech Republic, Poland, Hungary, Slovakia and Slovenia already had significant automotive industries, and in the intervening decade-and-a-half since the fall of communism, their economies have made significant strides toward the standards of established Western European states.

They are still emerging markets but, helped by large investments from global businesses, they are becoming more sophisticated by the year. This results in a potent combination of factors that makes Central and Eastern Europe (CEE) an appealing destination for new investment.

EU status, which will also be granted to Romania and Bulgaria from January 2007, means that products produced in the CEE can be imported and sold in other EU states without import tariffs or other obstacles. As a result, the nature of car manufacturing in the CEE has changed dramatically over the past decade, and that process is continuing. Communist-era designs are a distant memory, and only a handful of brands have survived. In their place, established automakers have invested heavily in manufacturing, and others have set up major manufacturing operations in the region.