German carmaker Volkswagen plans an investment of about Sk9 billion (€298.7 million) in Slovakia. Economy Minister Ľubomír Jahnátek told the SITA newswire that the German firm intends to invest in production of two new car models, so-called family cars in Bratislava.
"These models will be targeted at women, youth and student customers. Over 2,000 new jobs should open in Slovakia thanks to this investment project," Jahnátek said.
The Cabinet is to deal with support for the investment project of the German carmaker on December 17. The Cabinet should decide on the amount of investment stimuli to be provided to the company. Jahnátek said that stimuli should only be provided in the form of tax allowances.
"We suggest support equaling 5 percent of the total investment in the form of tax allowances. This should be enough for the German company to implement the project in Slovakia," he said. The support has yet to be approved by Brussels.
Volkswagen has been operating in Slovakia through its subsidiary, Volkswagen Slovakia, which is a production-assembly company. Volkswagen Slovakia reported sales of Sk193.4 billion (€6.42 million) last year. This was slightly down from a year ago, when it was Sk195.5 billion (€6.489 billion). The biggest portion of sales, Sk176.8 billion (€5.869 billion), came from car sales. The company supplied the highest number of cars to the German market, 37.1 percent of its total exports. The Slovak plant produces the VW Touareg, the Audi Q7, part of the Porsche Cayenne and since this March, also Škoda Octavia models.
In addition to Bratislava, the German carmaker is also developing activities in Martin, where it runs a plant for gearboxes and gearbox component production and in Košice, where it prepares cars for export to Russia. SITA
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
15. Dec 2008 at 23:00