The support for the GREen MObility (GREMO) project and the transformation of the automotive industry in the Fourth Industrial Revolution were the focal point of the talks, in which participated also Minister of Economic Development and Technology Zdravko Počivalšek, Minister of Education, Science and Sport Simona Kustec, Minister of the Environment and Spatial Planning Andrej Vizjak, Minister for Development and European Cohesion Policy Zvonko Černač, Minister for Digital Transformation Mark Boris Andrijanič, State Secretary at the Ministry of Finance Kristina Šteblaj, State Secretary at the Ministry of Infrastructure Blaž Košorok, State Secretary at the Ministry of Labour, Family, Social Affairs and Equal Opportunities Mateja Ribič, and State Secretary at the Ministry of the Interior Božo Predalič.

Today’s event began with a guided presentation of products showing the transformation of the automotive industry and competence building in the fields of high-efficiency electric motor systems, battery systems and lightweight materials and continued with a working meeting between the Government delegation and representatives of the automotive industry. During the presentation, the managing directors or chairmen of the boards of SIJ Acroni, Hidria, Domel Holding, Kolektor, Iskra Mehanizmi, Tab d.d., Talum, Unior, LTH Castings spoke about their companies’ activities, especially in relation to e-mobility.

Currently, 25 % of products fabricated by Sij Acroni are intended for electric motors. Under the GREMO project, they aim to reach €100 million in investments to double current capacities. In addition, they aim to achieve eco-sustainable production and 100% recycled technology and a lower carbon footprint than their competitors. Hidria has 50 years of experience in the production of electric motors and has been developing its e-mobility segment since 2010; recently, it has even laid the cornerstone for an investment project that will ensure additional capacities for rotor laminations and electric motor stacks for hybrid and electric vehicles. The investment is also expected to generate over €300 million in revenue and create 100 new jobs. The company’s advantage over its competitors lies precisely in its innovative e-mobility products.

Domel also has a long history in this industry and has been producing electric motors for 75 years. Part of the production is linked to the traditional automotive industry, while the majority is focused on hybrid and electric vehicles. The company sees e-mobility as an opportunity for both the automotive industry and the micro industry. Domel has worked with the Faculty of Mechanical Engineering to design an electric bicycle, showing they are able to make a cutting-edge e-mobility product. The GREMO project represents a bridge between industry and science for Domel and is a good opportunity for the company to establish itself on the global market. Kolektor has a turnover of well over €1 billion from its automotive business and took the decision to enter the e-mobility market several years ago. The presentation showcased complex products with a high added value that the company did not have five years ago. Kolektor sees the GREMO project as a means of collaborating with universities and partners and developing knowledge and investments.

Iskra Mehanizmi is increasingly moving towards intelligent mechatronics. The company has invested independently in a new €40 million factory, which is necessary for further growth and development of the business, anticipating that further production capacities will need to be built. They are developing new products that focus on green mobility and reducing environmental emissions, aiming for world-class innovations.

TAB d.d. is a 56-year-old company that produces lead-acid batteries, employs 1,500 workers and has a turnover of €350 million. They are engaged in green and digital mobility, collaborate with foreign partners and wish to be present every time green mobility and e-mobility are discussed. They also emphasised that they have developed an electricity storage facility for a foreign company and plan to recruit 300 new employees in the coming years.

Talum is a aluminium-production company that was founded 70 years ago. The company makes products with high added value and has already entered the e-mobility market. Talum is planning to create additional jobs and will invest more in research and development in the future. Unior sees European mobility as a challenge and is involved in the production of electric and hybrid vehicles. LTH Castings is one of Slovenia’s largest exporters, producing aluminium products and components and other types of products. They also develop e-mobility products, especially battery cases for electric vehicles, on-board chargers and inverters. The company also highlighted that they have received a mobility solution award for their products.

After the presentation, representatives of the Government and the Automotive Cluster of Slovenia held a working meeting. In his opening address, Prime Minister Janša pointed out that, prior to the financial and economic crisis in 2008, the Government had similar ambitions with regard to e-mobility and the green transition as it does now, and said, "During the crisis we were focused on how to stabilise public finances and provide additional oxygen for the economy, and the topic of green transition simply disappeared from the agenda. Five years later, it returned." He added that we can draw two lessons from what happened in the past: "Firstly, when the roof is on fire, we should not concern ourselves with how we will improve the interior decoration and ensure a better quality of life in the building but we should focus on first putting out the fire. Secondly, this taught us that the topic did not disappear forever, that these kinds of problems need to be addressed and, in the event of a setback, need to be put back on the agenda, allowing people to face these challenges more responsibly than in the past, which will require efforts, investments, changes, and also adjustments at the national level that will be difficult and costly," the Prime Minister emphasised.

"We are talking about the need for major investments, but it is impossible to achieve the climate goals without taking nuclear energy into account, which is one of the key debates that partly takes place in the background and partly in the foreground. How long this transition will take also depends on whether the debate will bring about the inclusion of nuclear energy in the transition. For this to happen, some decisions need to be changed at the EU level. If this is achieved, then the transition will be quicker, but if this debate does not lead to nuclear energy being included in the framework, then the transition will be much slower than expected, and this is something to be reckoned with," said the Prime Minister.

Prime Minister Janša also stressed that the exchange of information is key in the current situation. It is crucial that the competent institutions also make macroeconomic assessments based on the data available. "There is always a lag in this regard, so any information you can provide is extremely important for us. From the Government’s point of view, what is important is that we are able to help in the right way, considering the reality and the pace of all these changes, of which you are a part. So that the environment in which you operate and create added value, which practically finances everything in this country, is as favourable as possible, so that this environment is such that we are able to assess staffing forecasts, tenders and the use of financial resources from European funds we have available for both transitions. The Government has basic information at its disposal, and if we put it all together, we can achieve a good result," the Prime Minister said, concluding, "The Government has taken the initiative of the automotive industry seriously, even though we are quite busy solving other problems in Europe that Slovenians are not aware of, but we are not neglecting this aspect."

After the meeting, managing director of Hidria Holding Iztok Seljak and Prime Minister Janez Janša held a press conference. Mr Seljak maintained that we were in the "initial stage of electric mobility". This trend would continue to accelerate in the coming years also due to the fact that emissions should be reduced to protect the planet and halt climate change.

The automotive industry should not lag behind in implementing changes. "Our objective is not to maintain the current sales volume, but to feel competent as an active supplier in the new reality, which requires additional resources," said Mr Seljak. He added that the automotive industry needs support from its environment, state, ministries and science. He explained that today Automotive Cluster of Slovenia and the Slovenian Government reached a deal to cooperate intensively on the establishment of a fund for a transition towards e-mobility. "We will coordinate the details and the timeline of the transition so that we can implement these ambitious, but viable, plans together," concluded Mr Seljak.

In his introduction, Prime Minister Janša mentioned the global conference on climate change that is to take place in Glasgow at the beginning of next month because climate change is one of the main challenges of the mankind. "The reduction of CO₂ emissions and decarbonisation are the methods that mankind is using to combat this challenge. Transport contributes 20% to this challenge. Without a transition to other fuels and different use of other energy sources, it will be impossible to reach these targets," explained the Prime Minister. He pointed out that while the automotive industry is not the only industry involved, the discussion mainly revolves around it because it is one of the main forms of mobility in the modern world. "The Automotive Cluster of Slovenia is a very important part of this segment. It has been pointed out that this industry contributes almost 20% of our exports, which is the driving force of Slovenia’s economic growth. The topics we focused on and tried to close today address not only the CO₂ emissions and transition to zero-carbon mobility, but also innovation development and the quality of life in Slovenia," said the Prime Minister.

"We look forward to such vertical connections as the GREMO project. Such connections bring not only very concrete and positive business results for all stakeholders involved, but also help the responsible stakeholders to improve the economic and business environment. Where things are more clear and interconnected, it is possible for the Government to adopt measures and thus address the entire cluster of problems at once. This was the focus of today’s discussion", explained Mr Janša.

He highlighted that, next week, competent ministries will appoint coordinators who will address open issues and questions. Based on their work, by the end of the year the Government will adopt a suitable strategy on how to help all those who will tackle the challenge of zero-carbon mobility in Slovenia and thus in Europe and in the world. "The starting points are very good, as you could see for yourselves at the on-site presentations. Considering the presentations, it is clear that these are no small market niches to be filled, but they suggest rather a complex approach in the entire project. We are speaking about engines, drive mechanisms, batteries, that is energy sources and car structure. This means that Slovenian industry is capable of contributing products that constitute essential parts of the zero-carbon mobility of the future," emphasised the Prime Minister. He added that this provides additional motivation for the Government to join forces with the industry and speed up the process as much as it can at the moment.

"The funds negotiated by Slovenia within the recovery and resilience plan framework include funds for the green and digital transition. These two transition areas overlap in products and activities of the GREMO project, which means that support can be combined from various sources," explained the Prime Minister. He concluded that things would be organised in such a manner that "everything will take place when the approaches of other European countries from the last year are taken into account." "Slovenia will examine all these models. Everything we will undertake will be within the framework of national and European regulations, which will be quickly adapted to create the conditions for a rapid green and digital transition as soon as possible.

The Prime Minister also took questions from journalists during the press conference.

In reply to a question regarding car sales, he said that, in Europe, even used cars are difficult to come by overnight. "This is a consequence of delays in the supply of raw materials on the one hand and of great demand on the other." According to the Prime Minister, the demand has increased everywhere, leading to additional pressure on the market. He added that sales results were not catastrophic, but were in fact still solid. "The trend is not as we would expect if there were enough materials for all the components required, however." Mr Janša admitted that the current situation was worrying but said that Europe had learned a lot from the last economic and financial crisis. It upgraded some mechanisms that prevent such past events as when systemic banks had to be bailed out with taxpayers’ money. In the real estate market, the situation is different. Each serious economic crisis worsens the situation to such an extent that everyone can feel it through the financial system. "Currently, stability is ensured, which is why forecasts are significantly more optimistic than in 2009, when the global economic and financial crisis began. Slovenia felt its impact even more strongly, because it suffered from one of the longest recessions in Europe."

Answering another question, the Prime Minister said that, being a small country, Slovenia’s contribution to the overall energy picture was modest. He said that the situation was very clear. "About a third of Slovenian energy comes from the TEŠ thermal power plant, a third from the nuclear power plant and a third from other sources. We can stop using coal or gas when we find a replacement for the last third of our energy supply. He explained that, in our lifetime, we could not expect technological breakthroughs we do not know about yet. "The solution that not only we, but also most European countries need, is clear. Without increasing the energy production of nuclear power plants, it will be impossible to achieve a satisfactory or sufficient energy supply in most European countries or meet the climate targets we have set. This means that if we do not start seriously considering nuclear energy, there will be no zero-carbon society by 2050 – neither in Europe nor in the rest of the world." He continued that this discussion is going on in Europe and will be one of the main topics of the next European summit. The solution is completely clear, said the Prime Minister, adding: "The countries that decide not to include nuclear energy in their national energy balance will have to overcome their prejudice towards other countries and the European strategy." According to the Prime Minister, there is much ignorance in this area. "China formally supports the Paris Agreement and climate targets while rapidly building coal-fired power plants at home, particularly now when it was forced to a reduction due to drought and other conditions. It disassembles old nuclear power plants and sells their components elsewhere." As the Prime Minister pointed out, these questions were complex. Europe, whose CO₂ emissions make up less than ten per cent of the global total CO₂ emissions, cannot solve this problem on its own. He added that it is important to be a role model for others and to lead these activities. However, there should be no more reductions for Europe, because, simply put, modern society can no longer cope with them. According to the Prime Minister, these would have a huge social impact, much larger than the climate change. "Thus, common sense is needed in taking the risks brought by practically zero-carbon sources," said the Slovenian Prime Minister.

With regard to Slovenian debt during the COVID-19 epidemic, he explained that just like in other countries, Slovenia’s debt increased in this period, but by less than a quarter compared to other euro area countries. "If the debt had not increased, our economic growth would probably be negative today. This year’s economic growth is forecast to exceed six per cent, which will help us cover the expenses. In addition, the burden on the annual budget was significantly reduced by debt refinancing and smart borrowing this year. In 2014 and 2015, over three per cent of GDP was spent on state debt refinancing and debt interest. Slovenia is now heading towards 1.3%, which is half the previous effort. The debt-to-GDP ratio has also declined. It will continue to decline next year and in 2023," he maintained. The Prime Minister concluded that, in this regard, we fare much better than the EU average, particularly compared to the euro area average, which is used as a benchmark.