I’m Detroit? The domestic automotive industry has been waiting for the last good years

The production cycle of most cars manufactured in Slovakia will end in three years. If car plants do not acquire new models, after years of growth, the domestic car industry may face a period of declining production.

According to the captains of the Slovak industry, just in these months
decides what Slovak car production will look like after a year
2023. At the same time, multinational groups do not care about the development of employment and without
Slovakia may end its offer of benefits in the form of cheap labor
like American Detroit.

Video: See what the future awaits the Slovak car industry

The record in car production has a bitter taste

Transnational corporations have once again secured Slovakia a global position
leader in the production of passenger motor vehicles. In the domestic economy
last year, it produced 202 cars per thousand inhabitants. So strong
The automotive industry has no position anywhere else in the world. “Four
car factories in 2019 together produced approximately 1.1 million
cars, “said Alexander Matušek, president of the Automobile Association
industry of the Slovak Republic (ZAP SR).

At first glance, good numbers can be a bit disappointing since
compared to 2018, in 2019, car production increased only
about 7,000 vehicles. Last year, in the town below Zobor
Jaguar Land Rover in Nitra began production in full.

Volkswagen’s problems are to blame for the weaker growth of Slovak vehicle production
Slovakia. The Bratislava plant specializes in the production of cars with
internal combustion engines, which begins in times of emerging electromobility
be a problem. After years of massive recruitment, the carmaker had to in a year
Lay off thousands of employees with fixed – term contracts or
working for recruitment agencies. “Exact numbers of last year’s production
we will not publish until the spring, but we still remain the largest producer
cars in Slovakia, “assured Volkswagen Slovakia spokeswoman Lucia
Kovarovič Makayová.

Production of cars in Groupe PSA Slovakia in ...

Production of cars in Groupe PSA
Slovakia in Trnava.
(Click on the image to enlarge, open in a new window)

Work for 275 thousand people

Production of personal motor vehicles throughout Slovakia last year
employed 177,000 people. After counting the money of minutes by companies, etc.
people working in the automotive industry depends on the production of personal
motor vehicles up to 275 thousand jobs. “The share of automotive
industry in total industry reached 49.5 percent and the share of exports
46.6 percent, “Matušek explained. Almost half of last year’s exports
Slovakia consisted of cars or their parts.

The Association of the Automotive Industry expects production growth in this as well
year, when an estimated 1,150,000 cars are produced in the domestic economy.
However, Slovakia can only have a few good years ahead of it and then
may lead to a reduction in production. The home race is still
fails to jump on the coming wave of zero – vehicle vehicles
emissions. If Slovakia remains production-oriented in the future
cars with internal combustion engines, up to a third of the current ones will gradually disappear
work places.

We are losing the fight for electromobility

Multinational automobile concerns in recent years the production of electric cars
prefer to place in neighboring countries. Only in a duel with a neighbor
Last year, Slovakia lost the battle for Hungary for a new car race
BMW. Budapest was also successful in gaining research from Jaguar
Land Rover, which has built the only European plant outside Nitra
territory of the United Kingdom. In the neighboring Czech Republic, BMW
is building a research center to test the driving of autonomous vehicles.

“We have lost competitiveness vis-à-vis the Visegrad Four region and
we are gradually losing it to the countries of southern Europe as well, “Matušek pointed out.
According to representatives of the domestic automotive industry, labor costs are
Portuguese production operators are already lower than their Slovak ones
colleagues. In Volkswagen Slovakia, already in 2018, the average wage was in
amounting to EUR 1 954 gross. They are not included in this amount
above-standard remuneration of top management. Also other automobile
corporations operating in Slovakia pay decent wages to their employees.
In 2018, the average gross salary in PSA Peugeot was Citroën Slovakia
1,537 euros, in Kia Motors Slovakia around 1,700 euros and in Jaguar Land Rover
starting salaries vary depending on the job position from 997 euros to
1 885 eur.

A record in the sale of new cars in the Slovak Republic

According to several economic studies, companies are considering moving production to
countries with cheaper labor after the average wage in the region
will rise above 1,200 euros. In the east of Slovakia, although people’s salaries do not
they are far from approaching this level, but investors from building new ones
plants are discouraged by the lack of road infrastructure. Not without highways
it is possible to deliver automotive parts at the required time and right
Jaguar Land Rover has chosen Nitra for trouble-free logistics.

According to automobiles, Slovakia can transform from a manufacturing economy to
an economy built on innovation only if there is better interconnection
universities with experience. It already has 15 percent in the automotive industry today
employees a university degree and the need for top professionals will be
grow even more with the massive deployment of robots.

Last year, the number of imported vehicles from Slovakia also grew in Slovakia
abroad, the number of which increased by 1,998 to 113,863 cars.
“Last year, a record was also set in the sale of personal motor vehicles.
The total number reached 101,568 vehicles, which is compared to the year
2018 increase by 3,488 vehicles, “concluded Pavol, Vice President of ZAP SR