Why one corner of Europe’s car industry is still booming
The Economist
February 22, 2026
AI-Generated Deep Dive Summary
Europe’s car manufacturing landscape is not uniformly sluggish—Slovakia stands out as a thriving hub in an otherwise challenging sector. The country has attracted significant investment, particularly in electric vehicle production and advanced battery technology. Porsche’s Smart Battery Shop, located near Bratislava, exemplifies this transformation: the facility features robots outnumbering human workers by nearly two to one, with autonomous shuttles delivering parts and robotic arms assembling battery modules for electric vehicles like the Porsche Cayenne.
Slovakia’s automotive sector has historically thrived due to its strategic location near major European markets, a skilled workforce, and favorable business conditions. The shift toward electric vehicles presents an opportunity for growth, as companies adapt to meet global demand for greener transportation. Investment in EV production and battery manufacturing is reshaping the industry, positioning Slovakia as a key player in Europe’s transition to sustainable mobility.
This booming corner of Europe highlights the importance of innovation and strategic adaptation in the automotive industry. As global markets face economic uncertainty and regulatory pressures, regions that prioritize cutting-edge technology and sustainable practices are better positioned for long-term success. Slovakia’s story underscores how localized advantages—whether geographic, logistical, or labor-based—can drive growth even in a sector undergoing significant transformation.
Verticals
businesseconomics
Originally published on The Economist on 2/22/2026