The Slovenia Times

GKN Driveline with lower profit, higher revenue in Slovenia


Zreče - GKN Driveline, a Zreče-based car industry supplier from the British group of the same name, finished 2021 with a net profit of just over EUR 600,000, only a third of the net profit it posted the year before. Sales revenue increased by a third to almost EUR 113 million.

Lower than planned, growth was affected by the coronavirus pandemic and shortage of semiconductors, while the persisting challenges with semiconductors are now being further aggravated by the crisis in Ukraine.

"We are indirectly affected, because the end car manufacturers have a lot of suppliers from Ukraine and Russia," CEO Andrej Poklič said in the annual report.

Since an affiliated company in Italy closed its doors last year, the Slovenian company could sell more to Stellantis and other affiliates such as Vigo, he said.

The company expects the coming months to be challenging and unpredictable after sales revenue and profit in the first quarter of this year were also lower than planned.

Despite the challenges, the company, which has 360 employees, plans to generate around EUR 120 million in sales revenue this year.

Investment worth EUR 3 million is planned, primarily in machines, production automation, and quality improvements.


More from Economy