Poland in a feverish auto-boom



What happens to the car industry after dieselgate? Does the search for and production of cars decrease? No, if we judge what happens in Poland. The country is experiencing its golden age

in automotive production.

The scandal of diesel cars, the consequences for the environment and their prohibition on use in a number of Western European cities clearly do not affect Poland. According to BILD, the country is now experiencing its golden age in the area of ‚Äč‚Äčautomotive production. One reason: more than 38, 6 million people want to buy a new car. Data on newly registered vehicles in Poland weigh in part against those in Western Europe and car manufacturers invest like never before – whether by government subsidies or not.

Symbolbild car trade (Fotolia / Kzenon)

Mercedes recently started building a motor factory near Valbrzych, which will open 1,000 new jobs by 2019. And companies such as the IAC Luxembourg, Toyota and Volkswagen are just a few of the big investors who have decided to put millions of euros in production lines on Polish territory. German cars are also influenced by this trend and are slowly moving eastwards.

What are the reasons for this boom?

Up to now, Poland has been gaining mainly from investors because of the location and state support that is regulated by the European Union, which can benefit everyone who has decided to do business in the country. Separately, the Polish taxpayer makes between 10% and 15% of the total eligible costs (in eastern Poland) to attract even more investors. In the meantime, Walbrzych is one of the 14 special economic zones with tax benefits, cheap land prices and low electricity and water costs. The only thing that could slow Poland's rapid growth in this area is the under-skilled labor force, especially in the west of the country. There are the following rules: once local unemployment has fallen below the country average, the state's investment support will stop. The lack of financial incentives, however, is not a major obstacle for car giants such as IAC: "Unemployment is so low that there are not very large subsidies, but you will be lucky if you find such a good location with such & # 39; n good job offer, quotes the head of the company newspaper Automotive News Europe.

To the electric car

Meanwhile, due to the tendency to increase jobs and increase incomes, Poles are buying more new and luxurious cars, mostly in larger cities. In the first quarter of 2018, the number of newly registered cars increased by almost 140,000 units, compared with 125,000 last year.

"The automotive industry is the region of utmost importance for the Polish economy," said Vice President Krzysztof Zenger of the Polish Investment and Trade Agency. And he adds that the country will now use its advantage to evolve towards the production of electric cars. "It is necessary," says Sengger, "because one can feel the opposite side of the auto-boom: the air in Warsaw is bad, the public transport crashes in the seams and congestion tears the nerves of the drivers and puts their patience on the test."


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