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Fortune
Fortune
Ryan Hogg

The Czech Republic's car giant Skoda is defying parent Volkswagen's downturn

A worker sweeps the floor on the production line at the Skoda Auto AS manufacturing plant in Mlada Boleslav, Czech Republic, on Monday, June 19, 2023. Volkswagen AG is set to outline broad plans to lift returns across its stable of mass-market brands as the carmaker seeks savings in the costly transition to electric cars. (Credit: Milan Jaros/Bloomberg via Getty Images)

There is a shadow hanging over the European economy. The ascent of Donald Trump to the White House has exposed brewing fragilities within the continent's economy and military prowess. That hasn’t been evident anywhere more than in Germany, the industrial powerhouse reeling from two years of negative growth.

Now, Germany’s allies, who have lived in their own shadow of Europe's biggest economy, are left facing questions about their own survival. That’s most evident in its neighbor to the east: the Czech Republic.

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