THREE carmakers in Slovakia, Volkswagen Slovakia, PSA Peugeot Citroen and Kia Motors Slovakia, export as much as 98 percent of their production, Jaroslav Holeček, the president of the Slovak Automotive Industry Association (ZAP), told the TASR newswire in early January when Slovakia marked the fifth anniversary of the adoption of the euro.
The carmakers say the euro is an advantage for them as it has eliminated foreign exchange risks linked with crossborder financial transactions.
“Carmakers do not need to think where the export is headed,” said Holeček. “Before [Slovakia's adoption of the euro], when exporting [cars] to third countries without the euro, it was necessary to take into consideration three exchange rates: the crown, the euro and the currency of the third country.”
Carmakers in Slovakia manufactured more than 980,000 cars in 2013, upping their production by 5.8 percent compared with 2012. The estimate for 2014 is lower because of an expected shift in the car models manufactured in Slovakia. The Slovak automotive industry accounts for 26 percent of the total exports while all three carmakers rank among the biggest exporters in Slovakia.
10. Feb 2014 at 0:00 | Compiled by Spectator staff