Volkswagen’s Bratislava plant was in contention to manufacture the new ID.1 electric vehicle, but the German automaker has ultimately chosen Portugal as the production site. Industry experts attribute this decision to Slovakia’s declining competitiveness and Volkswagen’s pursuit of global synergies.
Martin Lidaj, executive director of the Business Alliance of Slovakia, described the decision as a “painful but important warning” that necessitates action. “If Slovakia doesn’t restore its competitiveness, it risks losing further investments, not just in the automotive sector,” Lidaj warned, emphasizing the significance of the industry to the country’s economy.
Patrik Križanský, director of the Slovak Electric Vehicle Association, linked the decision partly to the government’s public-finance consolidation package introduced last year. “The loss of the ID.1 production is the first major example of the consolidation package’s impact,” Križanský noted, highlighting the potential consequences of such economic measures on established investors’ decisions.
This development signals that Slovakia is no longer the automatic choice it once was for major automotive investments, particularly in the growing field of electromobility. The country’s ability to attract and retain significant projects is being questioned, with industry leaders urging for corrective measures to restore competitiveness and prevent further losses.
