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Transcript of Network of Automotive Regions 2007 Regional governments as shaping actors of automotive industry...
Network of Automotive Regions 2007Network of Automotive Regions 2007
Regional governments as shaping actors of automotive industry performance: a search after good practices
Torino, 9th of November 2007
Dr. Bart Kamp
Contents
Introduction Survey of automotive support initiatives Good practice examples Final reflections
Introduction
European regions and the automotive industry:– City region of Stuttgart: 50% of economic turnover is
automotive-related, comparable share of the sector in employment creation
– Alsace-Franche Comté: 30% of industrial labour is (in)directly related to automotive industry
– Piemonte: +/- 95,000 direct automotive FTEs; Torino: +/- 60,000 direct automotive FTEs: > 20% of DIL
» Importance of sector on level of specific regions is striking
» Regions have a stake in keeping automotive industry sane
Mixed growth outlooks for resp. countries and continents
A case for internationalization of local businesses
Passenger Car Market - Western Europe
11,25
11,90 12,03
12,80
13,41
14,36 14,40 14,2114,52 14,50
13,4913,4113,51
15,0714,8214,74
8,00
9,00
10,00
11,00
12,00
13,00
14,00
15,00
16,00
Mio
Growing importance of outsourcing Also with regard to R&D: a case for providing localized
innovation support structures
Production and added value of light vehicles (worldwide): 2015 forecast
203 (23%)228 (35%)
700 (77%)
417 (65%)
0100200300400500600700800900
1000
2002 (57 million production units) 2015 (76 million production units)
Adde
d va
lue i
n bi
llion
euro
s
OEMs Suppliers including service providers
Increasing importance of logistics
Outsourcing Global supply coverage Shorter time-to-market & build-to-order concepts Modularization JIT / SILS Share in total cost structure outpaces labour cost
In order to: – Learn from each other– Weather delocalization storms– Improve the competitiveness
of regional automotive complexes– Attribute “flypaper features” to participating regions
» NAR commissioned Benchmarking exercise on initiatives aiming to strengthen the automotive industry at regional level
• Objectives of Benchmarking exercise: Identification of good business and policy practices to sustain
automotive competitiveness Drawing lessons from good practices
Survey of automotive support initiatives
Survey of automotive support initiatives
Inventory resulted in 60 promising initiatives from around Europe …– In highly diverse thematic areas:
» R&D
» Logistics
» Education and training
» Knowledge transfer
» Internationalization
» Diversification
» Quality management
» Supplier development programmes
» …
Good practice examples
Internationalization:– From Concept to Car (Province of Turin)
R&D:– Centro Tecnologico de Automocion de Galicia (E)
Logistics:– Ford Genk supplier park & conveyor bridge (Flanders,
B)
From Concept to Car
Background:– FIAT crisis
» Need to diversify client base:
» Attract attention of outside buyers to the region’s companies
‘Dall'idea all'auto’ (From Concept to Car) programme– Objectives:
» Market Piemontese automotive potential abroad
» Open up commercial channels to prime customers
» Link local companies to demanding clients Commercial growth Divert mono-client / market dependencies Learning effects
From Concept to Car
Services– Organization of 1to1 meetings / trade makets– Dedicated trade missions to buyer company HQ– Inviting purchasing managers to acquaint potential
suppliers– Support set-up of purchasing offices in – Installation of a permanent contact office
From Concept to Car Achievements – Recognitions - Milestones
– First round 2003-2006 » 150 suppliers selected based on their capabilities
Receiving assistance to market themselves as well as visits from potential new clients
Large number of OEMs & OESs has been successfully targeted
438 meeting between Piedmont and foreign companies
125 industrial visits
11 workshops with international buyers
7 trade missions
4 conferences to present the programme in Russia, China & India
– Meanwhile, 1st edition got extended follow-up: budget from 2 -> 2,6 Meuro)
– Programme was awarded “Challenges 2005” prize
Good practice example 3: CTAG
Diagnosis prior to creation of CTAG:– Lack of technological back-up to support
innovation activities on behalf of local firms
– Regional companies had to turn to centres in other parts of the country or even abroad
– Risk of becoming footloose» In order to retain a sizeable and future-
oriented automotive sector in a peripheral region:
Being able to carry out innovation activities locally is of vital importance
»Conceiving of CTAG
Good practice example 3: CTAG
Inaugurated end of 2002– Concentration on a confined number of technology fields
– Cooperations with other centres to complement services and facilities on offer
Achievements:– Strongly growing demand after centre’s services
Good practice example 3: CTAG
Assessment of outcome:– Turnover figure is especially high in view of small size and
satellite character of regional automotive complex
– Importance to regional supplier community’s innovation activities is arguably considerable
– CTAG has served as important catalysator for regional R&D
– CTAG produces positive spill-over effects for other sectors in the region
– CTAG reduces the need for locally-based companies to go abroad (complete delocalization or off-shoring R&D)
Ford Genk Supplier Park – Conveyor Bridge
System for Automatic Sequence Delivery, i.e.: » a fully automatic transport system
» which delivers large and/or complex vehicle parts just-in-time and just-in-sequence
» from the assembly lines of suppliers to the assembly line of the customerCONVEYOR
Lear
IAC
TDS Automotive
SML
Assembly
Final reflections
Common denominators behind most good practices– Initiatives must be market led
» Business community has to be behind initiatives
– Benefit from tapping into economies of scale and scope: » If benefits are not region or industry-specific
» Enhancing sustainability of initiatives
– Big firms and public authorities often function as champions / levers to erect structures:
» Spill-over effects to wider automotive community
» Overcoming market failures
» Contribute to funding strategies