The Slovenian automotive cluster will get €200 million in state subsidies over the next five years for digital and green transformation, an effort described by Prime Minister Robert Golob as a key development project for the entire economy.

The funds will be channelled into GREMO - GREen MObility, an initiative that includes eleven major Slovenian automotive suppliers that employ more than 14,000 people.

As the partnership agreement was signed on 9 May, Iztok Seljak, the director of Hidria Holding, said the project signalled Slovenia was becoming a hub for the development of new technologies for green and sustainable mobility.

"The transition from a carbon society to a non-carbon economy entails profound change. Some will be able to keep pace, others will be left behind. We are determined to lead the change and help shape the future," he said.

The electrification required to achieve the transition will demand huge investments, with significant investment needed just to keep up, and much more to achieve innovation breakthroughs, he said.

The GREMO partners want to increase Slovenian automotive industry revenue from €5.1 billion last year to €7.8 billion by 2030, whereby value added per employee is projected to rise to €90,000 from €60,000 last year.

Prime Minister Golob said the €200 million was money specifically intended for GREMO, whereby the companies can also draw additional state funds.

He sees the partnership with the state as proof that the government is serious about investing in innovation, especially in areas where Slovenia is a leader and can achieve the highest value added.

The final figure for GREMO is a significant increase from the €30 million in annual subsidies that were first announced in September last year.