Novo Mesto
Slovenia's only carmaker exports 220,000 Renaults annually, generating 10% of GDP; now pivoting to €20,000 electric Twingo with €28M state subsidy.
Novo Mesto manufactures cars that Slovenia doesn't drive. Revoz, a wholly-owned Renault subsidiary since 2004, produces 220,000 vehicles annually—99% exported, mostly within the EU. This single factory generates 10% of Slovenia's GDP, 20% of exports, and employs over 16,000 people across the automotive supply chain. The concentration is extreme: Slovenia's industrial economy depends substantially on one assembly line in one town.
The relationship began in 1988 as a joint venture between Renault and Industrija Motornih Vozil. Clio and Twingo generations rolled off the line for three decades. Now the facility pivots to electric: the Renault Twingo E-Tech will enter production with €28 million in state subsidies. A Nissan EV may follow by 2027. Up to 400 additional jobs could materialize.
The strategy makes Slovenia an electric vehicle manufacturer at a price point below €20,000—targeting mass-market affordability rather than luxury margins. The bet is significant: if EV adoption accelerates as projected, Novo Mesto's relevance grows. If it stalls, the concentration risk materializes.
By 2026, Novo Mesto will likely expand EV assembly while managing the transition from internal combustion. The town demonstrates how small countries compete: not by diversification, but by specializing so deeply that multinationals cannot easily relocate. Path dependence serves when the path leads forward.