How tiny Slovakia became a car making heavyweight
www.bbc.com
The European country is the biggest autos manufacturer relative to the size of its population.
  • vpol@feddit.ukEnglish
    41·
    2 days ago

    TLDR; cheap labour.

    As for her salary, she earns €1,300 per month. “Good compared to other companies,” she adds. And later on that will rise. Kia says the average at the facility is €2,400 per month. That is substantially higher than the country’s average monthly salary across the entire economy, which official figures show , externalwas €1,403 in 2023. But at the same time it is considerably lower than the EU-wide average of €3,417.

    • Melchior@feddit.orgEnglish
      11·
      1 day ago

      Slovakia also had a lot of heavy industry, due to Czechoslovakia wanting that to be as far away from NATO as possible. Those skills were easily transfered to making cars. It is also a small country, so per capita is easy to reach. Clusters make a lot of sense. A lot of sense, as different car companies often have the same suppliers.

      Also Slovakia has the Euro.

    • EfreetSK@lemmy.worldEnglish
      15·
      2 days ago

      Hey it’s not just that. We have also many other things like … uhmm … uhmmmm … excuse me for one second

      • copaceticEnglish
        4·
        2 days ago

        Yes, it is not just that because cheap labor can be found elsewhere too.

        Being close to Germany is also important, for example, and distinguishes it from Asian and African countries.

        • vpol@feddit.ukEnglish
          1·
          2 days ago

          I’m not sure Kia needs to be close to Germany. They just need cheap labour somewhere within the EU.

          • copaceticEnglish
            3·
            1 day ago

            Yes, that is my point. Also the final paragraph in the article:

            Meanwhile, Audi, Mercedes-Benz and Suzuki have facilities in Hungary, Ford and Renault are in Romania, and Ford is in Serbia. All are attracted by low wages, and a tradition of industry and educated workers.

            That means “cheap labor” does not explain why Slovakia specifically is the “number one carmaker”. Why not Hungary or Romania or Serbia?

            • Mavytan@feddit.nlEnglish
              2·
              17 hours ago

              The article also mentions something about the availability of low carbon emitting energy sources in Slovakia resulting in lower CO2 emissions per car produced. This seems to matter for car subsidies/tax breaks

            • claimsou@lemmy.worldEnglish
              2·
              17 hours ago

              There were talks of VW moving away from SK to Romania at some point. But it never happened. They just want low labor with a hint of qualification…

            • Quittenbrot@feddit.orgEnglish
              7·
              1 day ago

              Why not Hungary or Romania or Serbia?

              Not sure if actually the reason, but none of those have the Euro.

            • vpol@feddit.ukEnglish
              2·
              1 day ago

              my guess: to avoid competition. more competition - higher salaries.