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Bratislava, Slovakia 11/8/2015

The British automaker will build its plant in Slovakia

Carmaker Jaguar Land Rover have finally chosen for its new plant Slovakia. The company announced today that it has signed with the Slovak Government tentative agreement on investment.

Aktuality.sk morning came the information that refuted foreign media that Land Rover and Jaguar will be produced in Poland.

As further firm said in a statement that the decision is in line with the expansion, which the automaker is planning in the coming years. The new factory should thus grow in Nitra. The first cars should meet the belts factory in 2018. The total plant capacity would be 300,000 cars. Slovakia can thus further strengthen its leading position in the production of cars in the world.

This information was confirmed today and Prime Minister Robert Fico. "We signed an important document, which is a milestone on the way to getting huge investments in the automotive industry," said Fico.

"We are pleased that the professional aspirations of both sides led company Jaguar Land Rover to the conclusion that Slovakia is an attractive country," he said.

Investment support

The Slovak government is still negotiating with company management. Indeed cabinet will have to approve state aid for the new investor.

Experts therefore expect that the Fico government finally smacks the company state aid in the maximum amount. Some time ago informed the British newspaper Financial Times that the decision automakers, where finally will head, is to support investment by individual states.

Foreign investors for the last 14 years have received from various governments hundreds of millions of euros, to come to Slovakia. Most cost us žilinský Kia plant. The South Korean automaker has received overall support of more than € 200 million.

Among other major recipients of investment incentives are mainly companies from the automotive and electronics sectors.

Poland, which was unable to planned construction of a plant of the British carmaker Jaguar Land Rover lost against Slovak, reluctant to increase state support offered to the level offered by the automaker Bratislava. Reported today that the Polish Ministry of Economy.

According to Reuters Poles consider our offer very high. "We gave our partners a good offer, which also was not for our state budget is too expensive."

"In the final stage of negotiations, however, Slovaks came with very high direct state support. This level of support we could not accept because it would mean that the costs and benefits should not divide between both sides equally, "said the Polish Ministry.

Manpower

The potential arrival of a fourth car, the question arises enough workers. For example, already, for example in the PSA Trnava plant employs more than a hundred Romanian workers.

"The posts occupied by local people near Nitra can be a problem," said CEO personnel-consulting company McRoy Group Lubos Sirota.

Therefore it assumes that the necessary staff will need to be at least partly imported from other regions. The advantage of the automotive industry by Sirota is that they generally offer higher salaries than the national average. Therefore, the people for such work pays off to travel.

Or the General Secretariat of the Association of Automotive Industry John Pribula is not worried labor shortages. The automakers are many positions that require training and retraining in factories directly and need not study at school.

"Right then such employees are very loyal to their employer," he said.

Dependence on cars

Pribula bequeathed experts who criticize the very heavy dependence on car production in Slovakia, which is the arrival of Jaguar Land Rover has increased, that we have nothing to worry about.

According to him, in the case of the production of cars in respect of investments with high added value. Compared with other industries have a higher added value only energy and petrochemical sectors.

Slovakia has long been a leader in the number of cars produced per capita. Last year it was 178 cars per 1000 inhabitants.

The automotive industry indirectly employs over 200 thousand people, of which 80 thousand works directly in automobile manufacturing.

Last year the sector accounted for 12 percent of the Slovak GDP and 26 percent of exports. The data of the Association of the automotive industry shows that Slovak carmakers produced 971,160 vehicles last year.

This year, however, given estimates of the volume of production to more than 980,000 cars, but it can still be a million. For the first quarter of this year, namely to it produced 265,000 cars.

History of Jaguar Land Rover

The roots go back to the car 20-ies of the last century the British Isles. In 1922 the company began producing motorcycles Jaguar, notably "sidecar".

Later the company moved to Coventry and started producing cars. After II. World War automaker focused on the production of luxury cars.

At that time he began with the production of off-road vehicles the manufacturer Rover. Both companies experienced both good and less good times. Later they dominated the competitors.

Jaguar bought in 1989 by US giant Ford. Five years later, the German automaker BMW prezala Land Rover.

In 2008, both producers finally cornered the Indian conglomerate Tata, which is the largest producer of vehicles in the second most populous country in the world.

Two years ago, their parent company merged into one car.

Slovakia vs. Poland

The final selection phase, the automaker decided between us and Poland. See comparison of Slovak and Polish economy.

The automaker should employ six thousand people and annually produce 300 thousand cars. With car production should start in 2018.

According to the information agency Reuters the automaker announced that a new plant in Slovakia will play an important role in the expansion of production of lighter models. "With an established automotive industry at a high level, Slovakia is an attractive development opportunities," said CEO Ralf Speth.

JLR said that now processes the study for the Nitra factory. Nitra primacy over other sites because of the good infrastructure and excellent supply chain. Slovakia wants to produce luxury cars with aluminum body.

The government signed a memorandum with car

The automaker signed with the Slovak Government tentative agreement on building a new plant.

Regarding investments held an extraordinary cabinet meeting. Briefing Prime Minister Robert Fico after negotiations lasted a very short time. Announced only signature on it "important document" Jaguar Land Rover.

"The intention, which we jointly announced herein, seen as a major step towards the acquisition of a strategic investment with a positive impact on Slovakia and the entire European Union," said Fico. He added that the government is waiting for the road to this strategic investment has a number of difficult negotiations ..

The final decision on the location of the plant in Slovakia do automaker this year. The factory is in addition to Slovakia auditioned for the Czech Republic, Poland, Hungary and Turkey, later narrowed the choice to Poland and Slovakia.

Slovakia last year maintained a position as the largest producer of cars per capita, while production of vehicles in the country for the first time since 2009 fell, at 971,160 vehicles from a record 987,718 cars in 2013.

Poles are disappointed

Decision automakers recorded the Polish press. Gazeta Wyborcza (wyborcza.biz) cites the report Financial Times under the headline Jaguar chose Slovakia. Poland lost again. The article states that did not help the huge tax incentives. Information brought disillusionment because the earlier information of the Indian newspaper "Economic Times of India" saying that the Poles should be in the home straight overtake Slovaks. For Poland supposedly talked skilled workforce, low labor costs and in particular the "huge subsidies" and bonuses, but which the Indian journal did not specify further. Server Superauto stated in the headline that Poland lost the war the factory. Bankier.pl recalled that on investments Jaguar enlarging the dimensions of the Slovak car "monoculture".

Puls Biznesu said that Poland has offered direct assistance to the investor in the amount of 83 million euros, but the Indian group was expecting much more. Slovakia at the finish supposedly offered more direct assistance. Jaguar also wanted an early start to construction work but Poland not ready sites so that they can quickly deal. Puls Biznesu quoted the opinion of the Ministry hopodárstva which stated that the decisions of the investor. The negotiations were difficult and the Polish fought side by the investor at any price (more in the article Slovaks offered support the Jaguar too high, say the Poles).

AUTOMOTIVE Slovakia /2014/

The number of cars produced 972,474 cars (the first decline since 2009, and Slovakia last year and confirmed its position as the largest producer of cars per capita)

The share of the automotive industry in GDP 12 percent

The share of the automotive industry in the industrial production of the country 43 percent

Number of employees in the automotive industry 80000

The share of automotive industry exports 26 percent

Companies Automotive Industry Automotive Industry Association representing 161 companies from the manufacturing, sale, import, research and development of automobiles, motorcycles and auto parts

Manufacturers of passenger vehicles Volkswagen (Bratislava plant German car production last year fell to 394,474 cars)

Kia Motors (car factory at Zilina in last year produced a record of more than 323,000 vehicles)

PSA Peugeot (factory in Trnava car production last year increased by about three percent to a record of about 255,000 vehicles)

Jaguar Land Rover (British car of the Indian group Tata Motors signed a preliminary agreement on building a new plant in Slovakia)

Source: Association of Automotive Industry (ZAPSR), car

Jaguar increases capacity outside Britain

Jaguar Land Rover is gradually increasing the number of models produced outside Britain. Last October, China opened its first overseas factory next year and to begin production of its plant in Brazil. Luxury car manufacturer aims to approach production to its major markets.

Jaguar Land Rover last year produced around 450,000 vehicles, but plans to expand production to a million cars a year. Company takeover by Indian group Tata in 2008 benefited from a significant strengthening of investment. In the last financial year the profit before tax increased to £ 2.6 billion, which was double the result of a period of four years ago

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