Offshoring engineering tasks allows car manufacturers to reduce development-related costs and Slovenian automotive suppliers and engineering firms have a reputation of suitable partners. They handle calculation and simulation work, electrical and electronic development tasks, and detail design engineering tasks such as sample and prototype construction. As safety and environmental requirements are becoming stricter, automobiles are becoming more electronically controlled. Many leading players in the automotive industry set up operating partnerships with Slovenian firms in the electronic control unit (ECU) development area: software coding, hardware design, the design and testing of entire assemblies and other electrical integration tasks such as CAD modelling are offshore to Slovenia.
Slovenia’s automotive industry generates one tenth of the country’s GDP and accounts for 21% of its exports. Slovenian companies have achieved compliance with all EU green and safety requirements and supply the international industry leaders. German carmakers Audi, BMW, Daimler, VW, as well as MAN, and Ford in Germany account for some 40% of car component exports, followed by France, Italy, Austria, the UK, and the USA. Reliability of the vehicles that roll off the assembly lines of Renault, PSA, Brosse; Lombardini, Landini, Fiat and Magna Steyr gives credit also to Slovenian suppliers.
Since Cimos discontinued the assembly of Citroen cars in Koper, Revoz owned by the French Renault remains Slovenia’s only car manufacturer and the number one Slovenian exporter with the 3.7% share of the global market. The cars produced by Revoz Novo mesto are renowned for their uncompromising quality, which ranks them high among Renault vehicles also in terms of productivity.
Many international companies locate their regional headquarters in Slovenia attracted by its proximity to the emerging regional markets and strong ties of local managers, engineers and other professionals with their counterparts in the Western Balkans. They speak the language, they are familiar with legislation, they know their way around, and what’s most important there are no cross-cultural barriers for them.
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Productivity/value added per employee, 2010
(Coachwork for motor vehicles, trailers & semi-trailers)