Slovak car sector posts record output in 2013

(BRATISLAVA) - Slovakia's auto sector posted record output of 980,000 vehicles in 2013 despite gloom in the European Union, its key export market, the industry said on Wednesday.

The eurozone member hosts modern plants owned by Europe's biggest carmaker Volkswagen, South Korea's Kia Motors and France's PSA Peugeot Citroen.

The groups raised their combined output by 5.8 percent last year, confirming Slovakia's position as the world's leading per-capita producer, the Slovak automotive industry association (ZAP) said.

The sector, which accounts for 41 percent of Slovakia's industrial output and employs more than 60,000 people, produced 926,000 cars in 2012.

The sector is expected to turn out at least that many cars this year.

"Slovakia's producers have reached their full production capacity so unless a new car maker comes to Slovakia or the existing ones invest in considerably extending current production lines there's not much scope for further growth," ZAP president Jaroslav Holecek told reporters.

"However, there's room for growth among the suppliers and research and development that would help Slovakia avoid the fate of former US carmaking stronghold Detroit."

Most of the cars assembled here are exported to other EU members, and to Russia and China.

Local automakers' focus on small, environment-friendly cars, and diversification into non-EU export markets has helped producers weather low demand from the 28-member European Union.