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More subcontractors expected to arrive

Suppliers usually offer their services worldwide.

Subcontractors often supply carmakers in Slovakia and abroad.(Source: Sme)

Not only new subcontractors but also others already established in Slovakia will benefit from the arrival of the fourth carmaker in Slovakia. The reason is that subcontractors that supply auto assembly plants often offer global services, which means they do not focus only on one brand, according to Juraj Sinay, president of the Automotive Industry Association (ZAP) in an interview with The Slovak Spectator.

He also commented on other impacts that the arrival of Jaguar Land Rover will have on the current network of subcontractors in Slovakia, the challenges the companies will face, and the possibilities for research and development.

The Slovak Spectator (TSS): There was a promise to create a database of subcontractors for the automotive industry. Which stage is it currently in?
Juraj Sinay (JS):
The creation of an interactive database of subcontractors for the industry is an important starting point for further activities concerning the development of the logistics network, the localisation of production, and increasing the competitiveness of the industry as a whole. After several discussions the Economy Ministry took the initiative and is now carrying out activities in order to achieve an all-embracing database ready for use by all relevant players as soon as possible. The result is an effort to create the database via agencies whose founders are the Economy Ministry and ZAP.

TSS: There is an expectation that the new carmaker will bring several subcontractors with it. Will they be beneficial only for Jaguar Land Rover (JLR) or also for carmakers already established in Slovakia?
JS:
Supplying firms for the automotive industry usually offer global services, so they do not supply only one brand. This indicates that the companies which will come to Slovakia with JLR, or based on its recommendation, already have customers here.

TSS: What impact will the arrival of JLR have on subcontractors that are already established in Slovakia?
JS:
Global subcontractors established in Slovakia may get a new customer who will “come” to their region. To reduce costs, it is possible that the production technologies focused on projects, which JLR plans for Slovakia, will be implemented in production plants in the region. Also smaller suppliers situated in the region may obtain bigger orders.

Do suppliers focus only on carmakers situated in Slovakia? What is the current state of R&D of subcontractors?

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Topic: Automotive


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