Alexander Matušek

The automotive industry had another successful year in Slovakia in 2018. Slovak carmakers confirmed their excellent performance by producing a record-breaking number of 1,093,215 passenger cars, with all four car manufacturers operating in Slovakia contributing to the 5.9% y/y growth. Our local automotive suppliers also reported an increase in deliveries of components, modules, and systems, not only to our local automotive manufacturers, but also more than 60% of locally-produced components were exported. We expect 2019 to again be a record-breaking year, but it is not enough to appreciate the success, we must focus on the future.

The coming structural and technological changes will be, and already are, big challenges for the entire automotive industry. Are Slovakia and the Slovak industry ready for these changes? Have systematic conditions been created for sustainable growth? What has to be changed?

These are questions which the management of the Slovak Automotive Industry Association is asking. Currently, our association has 200 members and is a member of international organizations. We are a respected social dialogue partner. However, our ideas and generally-applicable definitions are not sufficient for communication with the government. Therefore, we appreciate the annual activity of our member organization, PwC, whose annual survey of automotive suppliers provides a very useful insight into the opinions and mood of our firms and investors.

The results of this year’s survey confirmed the existence of certain barriers for the further development of the automotive industry in Slovakia and other sectors and specified the reasons and the shortages. We are very pleased that the survey has confirmed our fundamental propositions in communication with the government, which covered issues such as Slovakia’s competitiveness as regards costs, labour market flexibility, workforce mobility, educational levels and the educational system, the connection between the academic community and the industry, and waste management (predominantly the processing of industrial waste and products after the end of their lifetime).

The combination of several factors and the long-term lack of interest in finding adequate solutions have resulted in a gradual loss of our competitiveness, and neighbouring countries and others represent a threat for us. All this has caused our automotive suppliers to be less optimistic as regards their further development, the extent of orders, and further growth.

It is important to take advantage of the opportunities we have thanks to the presence of four big carmakers and an advanced supplier structure. We cannot take this situation for granted, but must create conditions for its preservation and further growth. In changing conditions, it will not be an easy task. Therefore, all players who have the potential to influence this future must closely collaborate to achieve this. We must strive to turn challenges from global trends into opportunities and use the opportunities adequately. Therefore, it is important to restore favourable conditions for investors, create a stable and predictable business environment, lower the tax and contribution burden and, by encouraging innovations, shift the industry towards production with higher added value.
 

Alexander Matušek
President of the Automotive Industry
Association of the Slovak Republic