The auto industry is at a turning point – Slovenia is preparing the necessary measures

Significant changes, problems, and high goals in the automotive industry, which we wrote about recently, can cause far-reaching consequences. The Slovenian Minister of Economy convened a meeting with representatives of the automotive industry, business associations and trade unions, the aim of which was to analyze the current situation and formulate the necessary measures to adapt the Slovenian automotive industry to new global challenges.

The German automobile industry, which has a strong influence on the European market, is facing a serious crisis. The slow transition to electric vehicles, declining sales, abolition of subsidies and increasing competition from China are just some of the problems weighing on this sector. Companies such as Volkswagen, BMW and Mercedes-Benz are experiencing significant sales declines, while facing high production costs and excess unsold vehicles. Geopolitical tensions and the unavailability of Russian raw materials further complicate the situation, and Chinese manufacturers of electric vehicles, thanks to more favorable production conditions and subsidies, are constantly putting pressure on European companies.

Photo-illustration: Unsplash (pl)

These challenges have a direct impact on many, including the Slovenian economy, considering that the Slovenian automotive industry is highly export-oriented and closely connected with other manufacturers. During the meeting in Slovenia, which was attended by representatives of the Office of the Republic of Slovenia for Macroeconomic Analysis and Development, the Chamber of Commerce of Slovenia (GZS), the Chamber of Commerce and Industry of Slovenia, the Association of Employers of Slovenia and the Association of Free Trade Unions of Slovenia, the need for urgent action was emphasized.

During the meeting, the necessity of implementing structural measures that would encompass the improvement of production processes through the integration of new technologies, digitization, automation and robotization was highlighted. Industry representatives expressed the expectation that the state, even with temporary measures such as the announced short-time scheme, will help maintain employment in periods of temporary fluctuations in demand. These measures should also be used for additional training of employees, given that the restructuring of the industry will require new knowledge and competences, as stated on the website of the Government of Slovenia.

In the context of the challenges faced by the automotive industry in Germany and Europe — Slovenia is trying to foresee the negative consequences on its economy and take adequate measures. Analysts warn that rapid adaptation of e-mobility is necessary in order to maintain a competitive advantage in the global market.

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Source: energetskiportal.rs