Most recently, Kia Motors has emerged as another bellwether of Slovakia’s dynamic automotive sector. Its factory in Zilina is capable of producing a staggering 350,000 cars annually. The United Kingdom is the largest market for these vehicles. At home, Kia’s the fourth best-selling car brand there – ahead of Honda and Toyota and only behind Volkswagen, BMW and Ford. This stunning achievement raises Slovakia’s prominence as the world’s top ranked car producer per capita. The nation produces almost a million cars annually.
The new Zilina assembly plant features a state-of-the-art design, including flexible production lines. It includes 690 robots that considerably increase production efficiency and precision. 23-year-old employee Simona Krnova works in the door insulation section of the assembly line. She talks about her genuine love for the work and excitedly points out her own family connections to the assembly plant. “50% of my family is working here, so I wanted to give it a shot. I love the people, too,” Krnova stated. She used to work in the service business and now makes €1,300 a month working at Kia.
Kia’s commitment to Slovakia goes beyond just their ability to churn out vehicles. The factory only recently received a massive €29 million tax credit! It will use that funding to convert its production lines to electric vehicle production as a part of an even larger €108-million ($116-million) investment. With the exception of hydropower, mostly untapped Slovakia produces one of the highest shares of low-carbon energy. The move puts electric car companies on the cusp of huge government benefits. Slovak officials are well aware that when you incentivize carmakers, you get rich dividends.
“Just look at the supplier base!” said Marc Hedrich. He was adamant that developing a strong ecosystem surrounding the Zilina factory would be key. Today, 360 companies work together in this intricate web, supplying key parts needed to replicate cars and trucks expected by consumers. This web of community ties powers a remarkable 140,000 jobs and $10.1 billion in economic output.
The prominence of Kia in Slovakia has been a driver for regional advancement. In Peter Fiabane’s home county, she saw that unemployment had made a historic nosedive. He praised Kia with a great deal of economic enhancement of the Zilina region. The automotive behemoth’s manufacturing footprint alone has spawned a half a million jobs. They’ve supplied ballast to a region that has undergone inversive transformative economic disruption.
Prokop, a longtime industry analyst, points out an interesting detail. Although wages in Slovakia are roughly 60% of those in Western Europe, the country’s productivity levels—among the highest in the world—make it an attractive destination for automotive production. “On one hand you still have lower wages,” Prokop clarified, “but on the other hand you have high productivity. So it’s definitely competitive.”
Kia’s geographical placement within the fabric of Slovakia only augments its logistical benefits throughout Europe. As Marc Hedrich remarked, “Slovakia is truly at the center of Europe, very well connected with the major markets. This hub-like location base to its central position, Kia can efficiently deploy new vehicles quickly around Europe and beyond.
The factory now has four other skilled workers, including Krnova. It is home to some senior management, including a number who reside in a gated community on the edge of a nearby village. This intimate structure encourages teamwork and builds camaraderie as well as morale between management and the crews.
Young employees such as Marcel Pukhon come to the automotive sector out of love of the car. “Since I was a kid, cars have been my love,” he continued. Now here I am working on the team and being able to create the cars, so that’s something really that’s that dream job. Particularly as spring lifts the dynamic town of Zilina, these sentiments remind us of qualities we saw in Kia’s dynamic, international workforce.