Slovakia, a hub of automotive

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Slovakia is a european country since the year 2004. It has borders with Poland, Ukraine, Austria and Czech Republic and has six million inhabitants. It is true that the price of labour, and therefore the salary of a worker, is much lower than that of countries such as Spain, which is why many manufacturers decided some years ago to build production plants to derive the manufacturing of some models to this country and reduce the cost.

today is a great power, automotive sectors, particularly the towns of Bratislava, Zilina, Trnava and Martin. The Volkswagen group was the first manufacturer to establish itself in this country and continues to make substantial investments in Slovakia, to the point that the Audi Q7, Touareg and bodies for the Bentley Bentayga will be manufactured in Bratislava. In 2003, PSA is located in Trnava with the 208, while Kia is located in Zilina, in 2004, with all production of the cee’d and Sportage.

Slovakia is the member that economically grows faster than the euro zone. Some facts that strengthen the position of Slovakia as a country major manufacturer in Europe:

  1. In the last decade, it is the world leader in terms of production of cars per capita, with 179 vehicles manufactured in 2014 per 1000 inhabitants.
  2. 99% of the vehicles manufactured in this country are exported to markets like Germany, the Uk, China, France and Italy.
  3. 200,000 people working in the automotive sector in Slovakia, including those found in companies of components, plus direct and indirect jobs.
  4. In 2014, Kia manufactured 323.730 units at the plant in Zilina, in addition to 493.000 engines. A 55% corresponded to the Sportage, a 36% to the cee’d and a 9% to Come.
  5. 493.000 engines manufactured by Kia in 2014, more than half were sent to the factories of Hyundai and 22% of this figure corresponded to the gasoline engine 1.6-liter GDi.

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Slovakia appealed to manufacturers

In 1990, Volkswagen began its investment in this country, and other manufacturers began talks with the Slovak government to settle in this region of Central Europe, to which is added also the industry of automotive components.

Slovakia is a country with a political and economic stability at the level of the major european countries and account with a tax system competitive in the form of tax breaks and other incentives, and the availability of a highly skilled workforce, which is complemented with a labour cost is very favorable, in addition to having a important and constant investment in its infrastructure and an enormous amount of industrial land.

But one of your most important asset lies in education. Slovakia has a scientific base and engineering, with the Slovak Academy of Sciences, the Technical University of Kosice, University Slovak Technology Bratislava, University of Zilina, which made important advances and developments in electric mobility.

And not only that, but the main suppliers of components worldwide: Johnson Controls, Continental, Faurecia, Getrag or ZF Sachs have closed agreements with the government of the country to establish scholarships for students of these universities to implement a system of dual education that allows to create professional well-qualified and able to work in their R & D centres in Slovakia, where the skills and experiences of researchers, scientists and engineers slovaks are very highly praised by many of these providers of cars.

is There room for more?

In Slovakia, there are more than 300 production plants of automobile and components from suppliers, and there is still space. The Slovak government estimates that there are for 100 other factories. Jaguar Land Rover is building a new factory in the town of Nitra and is scheduled to open in 2018 with initial production capacity of 150,000 vehicles a year.

Another extension: Porsche transferred the entire production of the Cayenne to this country by the end of 2017, so that the third generation will be “100% Made in Slovak”, in addition to a new plant of stamping of steel and aluminium and to an investment planned by Volkswagen encrypted at 600 million euros and more than a thousand new robots.

A division of the giant components Magna is also expected to be established for the manufacture of plastic parts, interiors and serving the manufacturers of automobiles locally installed and export to other countries of both Europe and China.

Yes, you read that right. The asian giant also arrive original components for repairs of models, or to factories such as Audi, Volkswagen or BMW, as most of the auto supplier operating in Slovakia have production processes are highly specialised and are considered providers of category 1.