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 range of car models produced in Bratislava may extend this summer. The range of car models produced in Bratislava may extend this summer. (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

News digest: Security Council will meet to discuss nationwide testing

Overview of news from Monday, October 19, 2020.

PM Igor Matovič announcing some details about nationwide testing on October 18.

PM wants to test everyone, Kotleba already positive in neo-Nazism

Nationwide testing is less utopian than the blackout but it is driven by the same ambition.

PM Igor Matovič shows the antigen testing kit that should be used in the nationwide testing project in Slovakia.

Matovič keeps falling. The effect of the dispute with its coalition partner is hard to guess

The senior coalition party was defeated by ex-PM Pellegrini’s movement, the Focus poll shows.

PM Igor Matovič

UPDATED: Nationwide testing will be secured by the army

Foreigners living in Slovakia will be able to get tested too.

Illustrative stock photo