Automotive industry recovery in Slovakia

The Slovak automotive industry is currently cautiously optimistic: The sector appears to be recovering and can expect investment from manufacturers and suppliers in Slovakia. After the global economic crisis also hit the automotive industry in Slovakia hard (employment in the sector fell by 6,000, from 74,000 to just 68,000), there now seems to be a modest upturn.

Automotive manufacturers and suppliers value Slovakia as a location

Flexible, well-trained workers, a central location in the heart of Europe, a business-friendly tax system and government subsidies—international automotive manufacturers and suppliers value Slovakia as a location and are once again investing in their plants there. This development has brought relief to politicians and businesses in Slovakia, since the automotive industry is enormously important to the economic success of this young country: In 2009, the automotive industry generated 38 percent of all domestic industrial sales—a substantial 60 billion euros. Among the automotive industry’s “global players,” VW, Peugeot/Citroën (PSA) and Kia have operations in Slovakia. As a result of the economic crisis, the three automakers’ combined production fell by nearly a fifth in the previous year, to 463,000 passenger cars. However, according to the companies, they are now once again building more than half a million vehicles at their three Slovakian plants. 98 percent of all passenger cars produced in Slovakia are exported.


Automotive manufacturers’ plants in Slovakia—figures, data and facts

Volkswagen:

Since 1991, the models VW Touareg, Audi Q7 and Porsche Cayenne have been built at the plant near Bratislava.

PSA:

Since 2006, the Peugeot 207 and Citroën C3 Picasso have been built at the plant in Trnava.

Kia:

Since 2007, the cee'd, Sportage and Hyundai ix35 models have been manufactured at the Žilina plant.