Yes, that is my point. Also the final paragraph in the article:
Meanwhile, Audi, Mercedes-Benz and Suzuki have facilities in Hungary, Ford and Renault are in Romania, and Ford is in Serbia. All are attracted by low wages, and a tradition of industry and educated workers.
That means “cheap labor” does not explain why Slovakia specifically is the “number one carmaker”. Why not Hungary or Romania or Serbia?
The article also mentions something about the availability of low carbon emitting energy sources in Slovakia resulting in lower CO2 emissions per car produced. This seems to matter for car subsidies/tax breaks
Yes, it is not just that because cheap labor can be found elsewhere too.
Being close to Germany is also important, for example, and distinguishes it from Asian and African countries.
I’m not sure Kia needs to be close to Germany. They just need cheap labour somewhere within the EU.
Yes, that is my point. Also the final paragraph in the article:
That means “cheap labor” does not explain why Slovakia specifically is the “number one carmaker”. Why not Hungary or Romania or Serbia?
The article also mentions something about the availability of low carbon emitting energy sources in Slovakia resulting in lower CO2 emissions per car produced. This seems to matter for car subsidies/tax breaks
There were talks of VW moving away from SK to Romania at some point. But it never happened. They just want low labor with a hint of qualification…
Not sure if actually the reason, but none of those have the Euro.
my guess: to avoid competition. more competition - higher salaries.