The significant changes, challenges, and ambitious goals in the automotive industry, which we recently wrote about, could lead to far-reaching consequences. The Slovenian Minister of Economy convened a meeting with representatives from the automotive industry, business associations, and trade unions, with the aim of analyzing the current situation and formulating necessary measures to help Slovenia’s automotive sector adapt to new global challenges.
The German automotive industry, which has a strong influence on the European market, is facing a serious crisis. The slow transition to electric vehicles, declining sales, the withdrawal of subsidies, and increasing competition from China are just some of the problems plaguing this sector. Companies like Volkswagen, BMW, and Mercedes-Benz are experiencing significant sales drops while grappling with high production costs and surpluses of unsold vehicles. Geopolitical tensions and the unavailability of Russian raw materials are exacerbating the situation, while Chinese electric vehicle manufacturers, benefiting from more favorable production conditions and subsidies, are constantly putting pressure on European companies.
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These challenges have a direct impact on many, including Slovenia’s economy, given that the Slovenian automotive industry is heavily export-oriented and closely tied to other manufacturers. During the meeting in Slovenia, which included representatives from the Office of the Republic of Slovenia for Macroeconomic Analysis and Development, the Slovenian Chamber of Commerce (GZS), the Slovenian Chamber of Crafts and Small Business, the Slovenian Employers’ Association, and the Confederation of Free Trade Unions of Slovenia, the need for urgent action was emphasized.
The meeting highlighted the necessity of implementing structural measures that would include improving production processes through the integration of new technologies, digitalization, automation, and robotization. Industry representatives expressed their expectation that the state would help, even with temporary measures such as the announced short-time work scheme, to maintain employment during periods of temporary demand fluctuations. These measures should also be used for further training of employees, as the restructuring of the industry will require new skills and competencies, according to the Slovenian government’s website.
In the context of the challenges faced by the automotive industry in Germany and Europe, Slovenia is striving to anticipate the negative consequences on its economy and take appropriate measures. Analysts warn that a quick adaptation to e-mobility is essential to retain a competitive edge in the global market.
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