Slovakia may be small, but its car industry is mighty. In a massive factory near the snowy mountains of Zilina, the steel shells of cars are lowered onto an assembly line. Robots handle welding, with 690 of them working alongside thousands of human employees. Every minute, a finished car rolls off the line, headlights flashing.
This European facility belongs to Korean automaker Kia and represents an investment of €2.5 billion. Slovakia’s automotive appeal is clear: Volkswagen, Stellantis, and Jaguar Land Rover also have plants here, and Volvo plans to open an electric car factory in 2027. With just 5.4 million people, Slovakia produces nearly a million cars annually. While this is far below China’s 31 million, it makes Slovakia the top producer in the world per capita.
Assembly line worker Marcel Pukhon, 48, says working at Kia is a dream job. “Cars have fascinated me since I was a child. Now I can actually help make them.” Marcel returned to Slovakia after living in Northern Ireland and England to join the plant.
For younger employees like Simona Krnova, 23, the job is not her lifelong dream, but it offers stability and community. “Half of my family works here, and I enjoy being part of this team,” she says. Simona earns €1,300 per month, which is higher than Slovakia’s average of €1,403, though below the EU average of €3,417. Kia reports an average salary of €2,400 at the plant.
The factory is mostly staffed by Slovaks, while a few dozen Korean managers live in a gated community nearby. When Slovakia was part of Czechoslovakia, cars were seen as low-quality and inefficient. That changed after the Velvet Revolution in 1989. Volkswagen invested in Skoda in 1991, eventually taking full ownership. Other international manufacturers followed, drawn by low labor costs, which were only 20% of Germany’s at the time, combined with high productivity.
Kia produces many right-hand-drive cars for the UK, its biggest market. Spain, Italy, and Germany follow closely. Slovakia’s central location in Europe and excellent logistics make exporting easy. Its growing low-carbon energy production also benefits electric car incentives, both locally and abroad.
The impact on the local economy is huge. The Zilina region has seen unemployment drop and local prosperity rise. Over 20,000 people work directly for Kia or its suppliers. Education also plays a role: Technical School students join Kia’s “dual programme” to gain hands-on experience, and around 400 university graduates each year enter Slovakia’s automotive workforce.
Slovakia leads the way, but other Eastern European nations also benefit from foreign car investments. The combination of lower wages, skilled workers, and strategic locations has made the region a hub for global carmakers.
