The automotive industry is the prime driver of the growth of the Slovak economy. Concerning the inflow of foreign investments, the automotive sector is curently the most progressive sector of the country's economy, while further increases can be expected in the upcoming years. Total company sales in Slovakia's automotive industry reached SKK 300 billion last year and have a 26.5% share in the total industrial output. The car industry would double its turnover to SKK 500 – 600 bn after the launch of the two car plants, currently under construction, of French PSA and Korean Kia Motors.
Slovakia's economic performance was outstanding (+5.5%) in 2004. Thanks to the decisions of Peugeot/PSA, and Kia/Hyundai to invest in Slovakia, together with the well established Volkswagen investment, this strong export-led growth is expected to continue in the forseeable future. Slovakia's strategic position within Europe, together with its tax and labour reforms, make it a very competitive investment destination.
Decision makers in the Slovak automotive sector are confronted by a high degree of strategic risk and uncertainty in several areas:
- Inter-dependency with neighbouring economies
- Application of Slovak tax and legislation
- Overall Slovak cost competitiveness
How PwC can help you?
We can address these challenges and advise you in the following areas:
- Inward investment advice
- Market analysis
- Dealer network restructuring
- Selecting and developing management
- Procurement and supply chain
- Consolidation of legal entities
- Tax optimisation of cross border manufacturing
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