Did you know that Bulgaria recently joined the club of European countries that are automobile manufacturers? China’s Great Wall Motors was the one to set shop in the country, with the first car rolling off the Litex Motors’s assembly line near the city of Lovech in February last year. The factory has an annual capacity of 50,000 vehicles, which could be extended to 70 000 units if the need arises.
The move has inspired Bulgarian officials to seek more and possibly bigger investments from other names in both the car manufacturing and supplier industries.
Ernst & Young consultant Diana Nikolaeva told Autonews Europe that despite Bulgaria’s problems, chiefly, a notoriously sluggish law enforcement and intricate administrative procedures, the country has won new factories from auto suppliers, as they take advantage of low corporate and personal taxation, as well as the skilled work force and the stable financial environment.
“Proximity to western European markets and being part of the EU’s harmonized regulatory framework are also key considerations,” Nikolaeva told the publication. “We see concentration of component manufacturers in locations where there has been a long tradition in producing hydraulic parts, cable equipment, sensors,” she added.
Next week, Bulgaria’s Automotive Cluster will hold the country’s first ever international automotive conference in Sofia (October 8-10), with speakers from BMW, Mercedes-Benz and Hyundai.
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