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News
06.04.2006
The Prime Minister Promises Help to Car Industry

The Prime Minister Janez Janša, who opened Motor Show Slovenia 2006 today on the premises of Celjski sejem Plc, emphasised that by implementing reform measures the Government wished to strengthen the capacity of all Slovenian economic sectors, including the car industry, which makes a significant contribution to GDP. To this end, more budget funds will be allocated, while a larger share of Structural Funds has already been earmarked within the next Financial Perspective. In addition, the Government will endorse projects by the Automotive Cluster of Slovenia, which endeavours to improve the position of car makers and suppliers through joint ventures. It is aware that under the current conditions, when the number of manufacturers has halved due to cost pressures and market saturation, rapid adaptation is essential.

 

FOTO: Nebojša Tejić/Salomon 2000

 

In his speech the PM said that over one hundred years ago pioneers – innovators, one of whom was the Slovene Janez Puh – had combined risk taking, courage and innovativeness to open up new horizons and create the engine of human development. The PM added that the car industry had reached a stage of development unimaginable in those times.

 

According to the latest estimates, Slovenia currently has 588 vehicles per 1,000 inhabitants, which is more than France, the UK, Holland, and Ireland. As far as quality is concerned, Slovenia is not lagging behind. The overall turnover of all manufacturers of car components in Slovenia amounts to over EUR 1.2 billion. Their exports total EUR 940 million. Slovenia's annual exports of buses and other commercial vehicles are just under EUR 30 million. The value of exported special tools, machines, and other equipment for the car industry exceeds EUR 100 million annually. The Slovenian car industry is one of the most productive export sectors, while it also provides a significant number of jobs. It directly employs about 23,000 people, and provides indirect employment to many employees in R&D, logistics and other sectors.

Most products are intended for the EU market, and also for the Croatian, Hungarian, US and Russian markets. The buyers of car components include leading European manufacturers and system suppliers.

 

The fact that the industry is of strategic importance to the Slovenian economy is reflected in the increase of government subsidies in recent years, which increased from SIT 50 million in 2001 to nearly SIT 400 million in 2004. The government has also provided a SIT 10 billion grant to cover 10 per cent of the investment and training costs required for the production of a new X44 vehicle in the Revoz company, which is currently in the last preparation phase.

 

 

At the end of 2001, the Automotive Cluster of Slovenia was established to strengthen competitiveness and increase added value. The ACS was one of the first clusters to receive government financial support for its establishment and activities, receiving nearly 6 million euros between 2001 and 2005.

ACS conducts two major projects. The first is the ''Polycentric technological centre as an international innovatory system of the Slovene automotive supply industry'', which is financed through the Ministry of the Economy from the Structural Funds.

 

The second project, entitled ''Development of a supplier network in Serbia'', aims to establish a quality supplier network of companies, R&D institutions, and support organisations in South-eastern Europe for Slovenian car suppliers. An improvement in the region's innovativeness and competitiveness will boost the competitiveness of Slovenian suppliers; therefore, the Slovenian government will support the project with funds from a UNIDO programme.

 

Motor Show Slovenia 2006 is returning after five years. This time it brings under one roof five thematically linked events: a Motor Show, a Car and Maintenance Fair, the Moto Boom Fair, the Logotrans Fair, and an Exhibition of Commercial Vehicles. The event hosts 260 exhibitors, and a total of 700 representatives, including company representatives.

 

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