00:00In Slovakia, sometimes referred to as the Detroit of Europe, the automotive industry
00:07is a vital engine driving the economy.
00:11Volkswagen is the largest private employer in the country, is the largest corporation
00:16in the country, one of the largest taxpayers in the country.
00:19If something happens in Volkswagen, it has economic consequences for the whole economy.
00:27Volkswagen's recent decision to close three factories in Germany and cut thousands of
00:31jobs has sent shockwaves throughout Europe's car industry.
00:35In Slovakia, where production shifts have been reduced, the move has sparked widespread
00:40concern.
00:41I think it will be the problem of all companies because we have a very big problem that the
00:51electric cars are not sold like everybody thought they would be.
00:57Holicek says the current crisis facing automakers is unprecedented.
01:01While low sales of electric vehicles are partly to blame, he says the real cause lies in the
01:07EU's 2035 deadline to end the sale of new CO2-emitting cars and government's failure
01:14to prepare for the switch.
01:16The problem is the infrastructure, that the countries are not prepared for the infrastructure.
01:23In recent years, European automakers ramped up EV production, anticipating consumer demand
01:29that has not fully materialized.
01:32Experts say new vehicle registrations have dropped by close to 3 million cars per year.
01:39This year, Slovakia led Central Europe in vehicle exports to China, with 78% of those
01:47exports being SUVs made right here at this Volkswagen plant in Bratislava, Slovakia.
01:56This is the country's largest company, employing close to a quarter of a million workers.
02:03For these workers, the stakes are high, with the EU's recent imposition of tariffs on Chinese
02:08EVs and low domestic sale volumes, Slovakia faces huge challenges.
02:14If you look at who is producing cars with big engines, so Germany and Slovakia is producing
02:21cars with big engines, so if the Chinese really want to hit back, so yeah, we will be caught
02:29in the crossfire.
02:30Meanwhile, Slovakia's autoworkers are worried about further shift cuts and trade unions
02:35are calling for solutions.
02:37In a statement to CGTN Europe, Volkswagen Slovakia said, production at our vehicle plants
02:42depends on consumer demand and supply chain conditions, with the goal of optimizing the
02:48economic performance of these locations.
02:52For a country so deeply integrated into the auto industry, the next steps taken by Volkswagen
02:58and other manufacturers will be crucial, meaning an uncertain road ahead for Slovakia.
03:04Pablo Gutierrez, CGTN, Bratislava, Slovakia.
Comments