BMW may open a factory in Slovakia, joining German rival Volkswagen group which already builds a variety of group brands there.

Slovak officials told news agency AFP they would welcome BMW, which is reportedly looking at opening a factory in eastern Europe where production costs are lower than in Germany.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

“Slovakia is one of the countries under consideration for BMW’s new investment,” economy ministry spokesman Stanislav Jurikovic told AFP, without disclosing further details.

Investors including auto manufacturers are eligible for either “cash incentives or tax breaks” from the Slovak government depending on the region in which a company chooses to invest, he noted.

Slovakia also has Kia and PSA factories.

BMW said last week that it planned to invest in new production capacity, and board member Ian Robertson was quoted by Slovakia’s leading Hospodarske Noviny business daily as saying the company was looking at Slovakia, the Czech Republic, Hungary, Slovenia and Croatia as potential locations for a new plant.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Unlike Daimler and VW, BMW does not have any factories in low-cost eastern Europe.

BMW told AFP it had made no decisions, but that it regularly explores different countries all over the globe as potential locations for future production sites.

Slovakia is already the world’s top per-capita car producer, with the sector accounting for 39% of overall economic output.

But “there is definitely room for another car plant in Slovakia,” the head of the country’s Automotive Industry Association, Jaroslav Holecek, told AFP.

The auto manufacturing sector employs 74,000 people in the ex-communist country of 5.4m.