Slovakia Becomes Number One Car Manufacturer

This is the European factory of Korean car company Kia, just outside the city of Zilina in the north of Slovakia. It represents, Kia says, an investment of €2.5bn ($2.9bn; £2.2bn). Volkswagen also produces cars in Slovakia. So does Stellantis (formerly Peugeot-Citroen, Fiat and Chrysler), and Jaguar Land Rover. Volvo is opening an electric car factory here in 2027. Slovakia, which is home to 5.4 million people, makes almost a million cars a year. This is a small number compared to the world's largest producers, such as the biggest, China, which manufacturers a whopping 31 million cars per annum. Yet Slovakia is the number one producer on a per capita basis - relative to the size of its population.  Kia says the average salary 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 but at the same time it is considerably lower than the EU-wide average of €3,417. Car industry expert Peter Prokop says that back then the labour costs in Slovakia were 20% of those in Germany. Kia Europe's outgoing chief executive, Marc Hedrich, says that Slovakia's car manufacturing industry also benefits from the country's central location. "Slovakia is really in the heart of Europe, quite well-connected to the big markets," he says. Another important Slovak advantage is its dense network of car industry suppliers. Some 360 companies work for the car industry. "The supplier base is enormous," says Mr Hendrich, "this is critical". Kia didn't want to go into details about the incentives it received from the Slovak government to start production in the country back in 2006. Yet Hedrich did say it received a tax credit of €29m for transforming its Slovak production lines for its new electric vehicles, the total cost of which was €108m. The Slovak government offers these incentives to carmakers because the benefits for the country are enormous.

BBQ - What is the biggest benefit for being a car manufacturer in Slovakia?

Slovakia Car

, external was €1,403 in 2023

Record Growth of Chinese Cars

One in 10 cars sold in the UK in June were made in China, according to the latest industry figures. New Chinese brands such as BYD, Jaecoo and Omoda are growing rapidly in the UK. There has been a particular surge over the past few months, at a time when most other G7 countries have levied significant extra tariffs against their imports. Around 18,944 cars made by Chinese-owned brands, including MG and Polestar, were sold in June, which is 10% of overall UK sales, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). That is up from 6% in the same month a year ago. Across the first half of this year, more than 8% - or 1 in 12 - cars sold were Chinese, up from 5% in 2023 and 2024. This was mainly but not exclusively electric vehicles. Chinese firms and their franchises have been buying up car showrooms. "Chinese manufacturers are producing cars which are better, cheaper and more innovative in every sector of the market," said John Neill, former SMMT President and ex-chief executive of Unipart.

BBQ - Will this soon lead to these brands looking to make their cars in the UK? Why?

Cars Made In China

New Nissan Leaf to be Made in UK

 

Car manufacturer Nissan has unveiled details of its new Leaf electric vehicle, which is set to be built at its UK factory. The third-generation model will be built at its Sunderland plant by its 6,000-strong team, the Japanese carmaker said. The new Leaf will be able to travel up to 375 miles (604km) on a single charge and will be available for customers to order later this year, Nissan said. It will be powered by batteries from AESC UK, Nissan's battery partner, which is based next to the Wearside factory. The site already also builds the carmaker's Juke and Qashqai models. Alan Johnson, senior vice president of manufacturing and supply chain management at Nissan Motor Manufacturing, said: "It's with immense pride that we unveil the third generation of our pioneering electric Leaf, 12 years after we brought EV and battery manufacturing to the UK. "It's a testament to the skill of our world-class team that we can bring into mass production a vehicle with such advanced technology and aerodynamic design." James Taylor, managing director of Nissan GB, said: "Leaf is a pioneering electric vehicle that has encouraged thousands to make the switch to electric motoring - and best of all, it's built here in Britain." It is the first model to be launched under the company's blueprint for electric vehicle production, Nissan's EV36Zero project, which aims for sustainability.

BBQ - Why is it good news that the car will be built in the UK?

Nissan Leaf