Automotive Industry and

Components in Europe
Automotive Industry and Components in Europe

The purpose of this presentation is to:

– Demonstrate the importance of the European Union – the world's largest single
market

– Outline its future dimensions as it expands towards the east

– Describe the present status and future prospects for automotive components
within this market

– Explain why Baden-Württemberg is the ideal location from which to serve the
automotive components market – Europe wide
 Europe is expanding towards the East
Eastern Europe In the last two decades, the sharp
European Union (non-EU) contrasts between the Western and
Population 459 m the Eastern European countries
Population 183m
Area (km2) 3 976 m
Area (km2) 2 204m
GDP (Euro) 10 817 bn have been fading and the European
GDP (Euro) 451bn
Union is the major driver for
(excl. Russia)
Europe’s integration.

Since May 2004, Poland, the Czech

Republic, Slovakia, Hungary,
Slovenia, the Baltic States, Cyprus
and Malta are members of the
European Union. In 2007, Romania
and Bulgaria are expected to join
the EU.

European integration opens up a

Source: German Federal EU Members (since 2004)
Statistics Office, vast market for your company with
Potential EU-members in 2007
EUROSTAT, OECD (2005)
untold market opportunities.
 The leading Markets in Europe
In 2005, the 25 member states of the
IS European Union had a total Gross
Domestic Product of Euro 10 817 bn,
exceeding the GDP of the USA (Euro
FIN 10 037 bn) and Japan (Euro 3 672 bn).
N
S

EW Four of the member states – Germany,

DK LV
RUS Italy, France and the UK – are among the
GB LT BY
IRL
six largest economies of the world. Of
NL PL

B
D these, Germany has the highest GDP,
UA
CZ
SK
the largest population, and the highest
H
F CH AUT purchasing power.
RO
SLO

E I BG Within Germany, the State of Baden-

P TR Württemberg, Germany`s southwest, is
GR
one of the most prosperous and
innovative regions.
Source: German Federal Statistics Office, EUROSTAT, OECD (2005) Dimension of total GDP
 The right Location for Growth and Prosperity

Baden-Württemberg is already the most highly

industrialized and one of the most prosperous regions in
Germany.

Its proximity to important markets – east and west – makes

it an ideal location for pan-European activities.

And it has further merits:

– It has a highly developed infrastructure – suppliers,

R&D facilities, business services.

– Its workforce is well trained, innovative and productive.

Germany‘s Southwest:
Baden-Württemberg – Its companies have an established export orientation
and know how to penetrate new markets.

It is set to succeed in the 21st Century.

 Europe – the most attractive automotive supply
market
Global Production of Cars and Commercial Vehicles (in million units) Of the 64.9 million cars and
commercial vehicles produced
worldwide, 20.9 million (more than
20.9 a third) were produced in Europe,
16.3 24.0 more than in the NAFTA (16.3
million) and in as much as in the
Europe
Asia-Pacific region (24 million).
North
America Asia-
Pacific In addition, many of the European
(NAFTA)
car manufacturers have additional
2.8
1.0 production sites outside Europe,
South Others
America
while the purchase of automotive
(MERCOSUR) supply parts is handled in the
European Headquarters.
Source: Automotive News Europe, figures from 2005
 Germany - Europe‘s biggest market
for OEMs and supplier
Manufacture of motor vehicles and motor vehicles parts
(Turnover in Bn Euro)

USA 422,947
Japan 350,325
Germany 309,479
France 208,322
China 86,984 After the USA and Japan – Germany
still is the third largest automotive
Canada 77,469
market.
UK 64,21
South Korea 55,651
Spain 55,378
Source: VDA, International Auto Statistics, Figures from 2005
 Germany – Europe‘s largest automotive supply
market
European Production of motor vehicles With more than 5 million cars and
(million units)
more than 400,000 commercial
5,35
GERMANY 0,41 vehicles, Germany is the largest
3,11
FRANCE 0,44 EU automotive manufacturer and
2,1
SPAIN 0,65 also the largest market for
1,6
UNITED KINGDOM 0,21 automotive components,
0,73
ITALY 0,31 accounting for
BELGIUM 0,9
0,03
– 51% of the EU OEM market
SWEDEN 0,29
0,05 and
PORTUGAL 0,14
0,08
NETHERLANDS 0,11 Cars – 25% of the aftermarket.
0,07
0,23 Commercial Vehicles
AUSTRIA 0,02
FINLAND 0,01
0

Source: ACEA, figures from 2005

 Germany – Europe‘s largest automotive supply
market
The Automotive Components Industry
(Turnover in Bn Euro)

Japan 162,806

USA 127,618
Germany is the largest producer of
Germany 72,512 automotive components with a large number
France 23,89 of small and medium-sized companies in this
sector, many of them very specialized.
UK 15,755

Italy 15,334

Source: VDA, International Auto Statistics, Figures from 2005

Growth Opportunities for High-Tech Companies

– High-quality, high-tech products

are increasingly in demand

– The market is growing and will

continue to increase

– There is room for new market

entrants among the wide range of
producers

– EU norms and standards are not a

hurdle, but an opportunity to serve
an ever-expanding market
 Eastern Europe is an attractive Market
Manufacture of motor vehicles and motor vehicles parts Besides China, Eastern Europe is considered
(Turnover in Mn Euro)
the most interesting growth market for
automobiles.
Poland 15,058
The Western European automotive supply
Czech Republic 14,002 market will play a major role within this
6,387 growth scenario, as many of these cars are
Hungary
produced in Western Europe or Central
Slovak Republic 4,929 European factories of EU car manufacturers.

Romania 2,822

Slovenia 1,547

Source: VDA, International Auto Statistics, Figures from 2005

 New Targets for Automotive Suppliers in Eastern
Europe
Poland Czech Rep.
Volkswagen Poznan:
Skoda:
Production: 121 536 Vehicles
Production: 493 017 Vehicles
Daewoo FSO Motor:
Toyota Peugeot Citroën
Production: 25 000 Vehicles
Automobile Czech:
Opel Polska: Production: 300 000 Vehicles
Production: 116 593 Vehicles
Fiat Auto Poland:
Porduction: 306 666 Vehicles

Slovakia
Hyundai/Kia:
Production: 300 000 Vehicles

Slovenia Volkswagen Slovakia:

Production: 171 888 Vehicles
Revoz (Renault: 66,7%)
Production: 131 646 Vehicles PSA:
Production: 300 000 Vehicles

Source: OICA 2004

 New Targets for Automotive Suppliers in Eastern
Europe
Belarus
Total production: 16425 Vehicles
Russia
VAZ:
Production: 717 985 Vehicles
Hungary
GAZ
Magyar Suzuki Production: 214 251 Vehicles
Production: 72 672 Vehicles
ISC-Izh-Avto:
Audi Hungaria Motor: Production: 96 497 Vehicles
Production: 23 605 Vehicles
UAZ:
Production: 69 599 Vehicles
OKA:
Production: 40 013 Vehicles
Romania Ford
Production: 29 703 Vehicles
Dacia (Renault: 92,75%):
Production: 94 698 Vehicles ZAO Roslada:
Production: 17 683 Vehicles
Daewoo (GM):
Production: 21 793 Vehicles

Source: OICA 2004

 New Targets for Automotive Suppliers in Eastern
Europe
Vehicle Production Forecast In 2005, 2.9 million cars have been
for Central and Eastern Europe (in thousands) produced or assembled in Eastern Europe.

Russia, Poland and the Czech Republic

2 941 2 986
2 850
2 658 2 722 are expected to account for 75% of the
2 541
total output.

300 304 306 308 318 321

2000 2001 2002 2003 2004 2005

Cars Commercial Vehicles

Source: Factbook 2005

Baden-Württemberg and it‘s Automotive Industry
The motor vehicle industry has a long tradition in Baden-
Württemberg:

– The home of Gottlieb Daimler and Carl Benz – pioneers in the

www.mercedes-benz.de automobile industry

– The site of automobile production since 1901, when the first

Mercedes took to the roads

www.porsche.de It has always had a trend-setting function in many technological

areas:

– Mercedes-Benz (DaimlerChrysler) in the field of driver safety

www.audi.de – Porsche in all areas of sports car technology

– Audi in four-wheel drive for normal sedans

www.bosch.de
– Bosch in fuel-injection systems and ABS
 Annually, almost one million cars
are produced in Baden-Württemberg
AUDI AG
Neckarsulm Factory
Employees: 14 000
DaimlerChrysler AG Models: A2, A6, A6 Avant, A8, S6, S6
Rastatt Factory Avant, S8, offroad quattro
Employees: 6 500 Volume: 240 000 cars annually
• Neckarsulm
Models: A-Class, B-Class
Volume: 180 000 cars annually

• Rastatt • Stuttgart
• Sindelfingen

DaimlerChrysler AG
Sindelfingen Factory
Employees: 41.000
Models: C-Class, E-Class, S- Dr. Inc. h. c. F. Porsche AG
Class, E-Class Stuttgart-Zuffenhausen
Limousine, Maybach
Employees: 4 800
Volume: 400 000 cars annually
Models: 911, Boxster
Volume: 33 000 cars annually
 Also commercial vehicles
have a strong base in the State
DaimlerChrysler AG
Mannheim Factory
• Mannheim
Employees: 6 430
Products: Engines, Gears for
commercial vehicles

DaimlerChrysler AG • Heilbronn IVECO MAGIRUS

EvoBus Mannheim Ulm
Employees: 4 000 Employees: 400
Products: Buses Products: Fire brigade vehicles
Volume: 1 800 buses annually Volume: 140 vehicles annually
• Stuttgart
• Gaggenau
DaimlerChrysler AG
Ulm/Neu-Ulm Factory
Employees: 3 129
• Ulm Products: Mercedes-Benz and
Setra buses
• Laupheim Volume: 2 550 buses annually

DaimlerChrysler AG KÄSSBOHRER
Gaggenau Factory Laupheim
Employees: 6 900 Employees: 300
Products: Unimog Products: Special off-road vehicles
Volume: 2 700 vehicles annually Volume: 500 vehicles annualy
Suppliers of the Automotive Industry
Mobility – One of Baden-Württemberg‘s five Key
Clusters

Mobility

T.I.M.E.
(Telecom, IT, Media, Health Care
Electronics)

Industrial Process Environmental

Technology Technology
Baden-Württemberg‘s unique Automotive Cluster
Nowhere else in Europe is the concentration in the Automobile production depends
„Mobility-Sector“ as high as in Baden-Württemberg on a closely knit network of
supplier industries.
Automobile
manufacture In Baden-Württemberg, all the
(cars, commercial vehicles,
trains, buses) supplier industries are present in
great density – one of the few
Electrical
Metal-working
Engineering / regions worldwide that offers this
Electronics
advantage.

Plastics & glass Many important innovations, such

Information
industry
technology as the Electronic Stability
Optics / precision Program (ESP) or TELE AID, a
engineering
system combining GPS-
navigation with telematic services,
Service Sectors are the result of close cooperation
between the different sectors.
Baden-Württemberg – A focal point in Automotive
Supply
– Baden-Württemberg is the center of the German automobile industry,
accounting for more than a quarter of the sales in this sector in Germany.

– Vehicle and engine manufacturers: 41 production plants that generated sales of

more than € 49 billion – almost 75% of it abroad.

– Direct suppliers to the automobile industry: 220 production plants that profit
from the presence of the car manufacturers, resulting in a sales volume of over
€ 15.9 billion.

– Both manufacturers and suppliers benefit from this industrial density – the
highest worldwide. More than 3 300 businesses (with more than € 120 billion
turnover) from the most diverse areas work in close cooperation with car
manufacturers as suppliers, customers or partners in design and development.
 Baden-Württemberg – all Location Criteria fulfilled
Baden-Württemberg can provide... Automotive Suppliers benefit from...

– Proximity to major motor-vehicle – Immediate access to important OEMs

manufacturers: Mercedes-Benz, Porsche,
– Cooperation opportunities with other
Audi
suppliers
– Proximity to manufacturers of heavy
• In developing systems and modules
vehicles, agricultural vehicles and busses:
Kässbohrer, Iveco Magirus, Mercedes- • In carrying out simultaneous
Benz, Evobus engineering tasks

– Density of local suppliers in all related
areas
– Highly qualified and quality-conscious
employees
– The skills and experience of well trained
personnel in developing innovative
products and penetrating new markets
 Baden-Württemberg –
A unique reservoir of qualified personnel
– Baden-Württemberg‘s Car Manufacturers and suppliers employ more than 220 000
people – 20% of total workforce in the State.
– Every 20th employee in Baden-Württemberg has an engineer degreee.
– More than 90 000 students study management or engineering every year.
– Many universities and technical colleges offer specialized courses for the automotive
sector:
• Design, development and process engineering in Esslingen and Konstanz
• Automotive engineering in Karlsruhe and Esslingen
• Business Administration Automotive Industry in Nürtingen
• Automotive Engineering (Powertrain/Services and Chassis/Mechatronics) in Esslingen
• Studies in english language as Mechatronics in Ravensburg and Automotive
Engineering in Esslingen
• Automotive design in Pforzheim
 Baden-Württemberg –
An excellent structure for higher education
Baden-Württemberg has the most densiest
and the most modern structure of Universities
and Academies for higher education,
including
– 9 Universities
– 36 Universities of Applied Sciences
– 6 Universities of Education
– 8 Universities of Arts
– 8 Vocational Academies
– 7 Private Universities

A network of technology transfer centers

provides the bridge between private industry
and research institutes and guarantees rapid
access to new results.
 Baden-Württemberg –
A highly developed Research Infrastructure
The State provides a unique research
infrastructure consisting of

– 3 large-scale research institutes

– 12 Max-Planck-Institutes

– 15 Fraunhofer Institutes

– 7 contract research institutes at

Universities

– 9 institutes of joint industrial research.

 Baden-Württemberg –
Good access to the East and the West
Distance in km flight
time
Athens 1677 3hrs/40
Berlin 512 1hr/5
Brussels 416 1hr/5
Helsinki
Budapest 749 1hr/20
Copenhagen 802 1hr/40
Copenhagen
Moscow Helsinki 1621 2hrs/40
London Istanbul 1776 4hrs
Brussels Berlin
Lisbon 1841 2hrs/20
Prague London 727 1hr/45
Stuttgart
Paris
Budapest Madrid 1378 2hrs/25
Milan Milan 369 1hr/5

Rome Moscow 2067 5hrs/40

Lisbon Madrid
Istanbul
Paris 502 1hr/15
Prague 408 1hr/20
Athens
Rome 808 1hr/40
 Baden-Württemberg Facts & Figures

Population 10.7 million inhabitants

Gross domestic product (GDP) Euro 330 billion

Expenditure on R&D Euro 11.9 billion = 3,9% of the State’s GDP

Patent applications per year > 12 828 = 26,5% of German total

Number of manufacturing plants (with more than 20 employees) 8 605

Export quota (manufactured products) 47 %

Value of exports Euro 123.5 billion = 2 % of the World’s exports

Assets out of foreign direct investments (2003) Euro 67.2 billion

Research facilities > 100 major research institutes

University, technical and vocational college students 242 559

 Services provided by Baden-Württemberg
International
Baden-Württemberg International is your central port of call if you are looking for a location or a
Baden-Württemberg partner with whom to establish fruitful business relations. Our range of services
includes:
When you are looking for an industrial When you are looking for cooperation
location: partners:
– Information on Baden-Württemberg and – Information on market potential and
on individual industrial sites. market specifics.
– Consulting on government subsidies and – Planning of information visits, including
programs. appointment scheduling.
– Assistance with all contacts to – Identification of potential partners that
authorities, including permit procedures. meet your specific demands.
– Support in the search for suppliers and – Assistance with trade fair activities in
the selection of service companies. Baden-Württemberg.
Baden-Württemberg International
Willi Bleicher Strasse 19, D -70174 Stuttgart
Phone: ++49-711-2 27 870 • Fax: ++49 711 2 27 87 22
Internet: www.bw-invest.de • E-Mail: info@bw-i.de