Cabinet green-lights over €5-million investment aid for production of e-car components

Volkswagen's plant in Martin will manufacture differential gears for electric cars.

The autimotive industry is one of main pillars of the Slovak economy. The autimotive industry is one of main pillars of the Slovak economy. (Source: Courtesy of VW SK)

The cabinet on Wednesday, February 19, greenlighted a €5.035 million investment stimulus for the Slovak arm of the German carmaker Volkswagen in the form of income tax relief. With the provision the carmaker will support its €14.4-million investment at its Martin-based plant, where it wants to build new capacities to boost e-mobility development.

“We are interested in continuing to support innovations and all new elements in the automotive industry,” said Economy Minister Peter Žiga (Smer) after the cabinet session, as cited by the TASR newswire. “This is why we have decided to support the activity of Volkswagen.”

The new product to be added to the portfolio of the Martin-based plant is the differential gear for electric cars.

Related articleSlovakia jumps on the electronic wave Read more 

Žiga recalled that the new investment will secure not only the creation of 18 new working positions until 2021 but also stable work for about 160 employees, who worked on a different production line before.

The Martin plant, which is a part of Volkswagen Group Components, was launched in 2000. It now employs more than 800 workers. It produces components for gear boxes and chassis as well as various shafts. More than 90 percent of its production goes to the group’s plants in Germany.

Get daily Slovak news directly to your inbox

Top stories

The mass testing in Nitra.

News digest: Results from weekend nationwide testing still not out

The parliamentary committee recommends one candidate for new police chief. NASA picks a picture by Slovak photographer as its Astronomy Picture of the Day.

1 h
Gábor Grendel (OĽaNO), Juraj Šeliga (Za Ľudí), and SaS MPs Marian Viskupič and Jana Bittó Cigániková.

Matovič government takes after Smer in lawmaking

The second-largest testing scheme of the whole population is underway in Slovakia. Government says they ordered enough vaccines. Layoffs of transnationals in Bratislava.

6 h
PM Igor Matovič (front) and Economy Minister Richard Sulík (back)

Hlas is gaining strength, along with Sulík’s SaS

At the same time, most people think PM Matovič is not managing the coronavirus crisis well.

8 h
US President Joe Biden

Biden really is waking up each morning with the goal of making things better

The new president is old and imperfect, but it's difficult to question his motives.

22 h