Automotive and Processing Industry

In 2007, three car makers in Slovakia– VOLKSWAGEN, PSA, and KIA –produced more than 570,000 cars,which is 106 cars for every 1,000inhabitants, more than anywhere elsein the world.

Due to the expected financial crisis,experts have identified key factors thatshould help mitigate its adverseimpact on Slovakia: the country’sstrategic position, its relativelyavailable and skilled labour force,as well as the product portfolioof the new market players – PSAand KIA. These two companies focusmore on medium-sized and smallcars, which might help positivelydiversify the Slovak car industry.

In the fairly long term, researchand development must berepresented more widely, ensuringsustainable growth even afterthe advantage of an available labourforce disappears.

Main Industry Issues

Decision-makers in the Slovakautomotive sector face high strategic riskand uncertainty in several areas:

• Lack of a qualified labour force.
• Interdependence with neighbouringeconomies.
• Application of the Slovak taxand labour legislation.
• Overall Slovak competitivenessin production costs.
• Inventory management.
• Changes in accounting regulations.

We can assist with

• inward investment advice, suchas searching for a suitable site
• market analysis, competitor analysis,and analysis of macro- and microeconomicrelations
• restructuring the dealer network
• recruitment and professionaldevelopment of executive staff
• procurement and supply chains,and optimizing the just-in-time chain
• consolidation of legal entities
• tax optimization of cross-bordermanufacturing, mainly VAT-relatedissues
• the right to draw investment incentivesand the respective consultancy
• HR advice, such as benchmarkingstudies on wages and salaries,optimization of remuneration systems,and employee benefit schemes
• reviewing systems and processes
• comprehensive advice and trainingcourses related to IFRS