Pole Position for Automotive Suppliers Invest in Bavaria

Invest in Bavaria
Facts
www.invest-in-bavaria.com
Pole Position for
Invest
Automotive Suppliers
in Bavaria
Bavarian Ministry of Economic Affairs,
Infrastructure, Transport and Technology
Automotive Suppliers

Bavaria—Automotive Excellence
Business environment with growth potential
in the Center of Europe
World renowned manufacturers
With sales of Euro 61.9 billion in 2002—
39.9 billion from exports—the automotive
industry is Bavaria’s key industrial sector.
■ The Bavarian OEMs Audi in Ingolstadt
and BMW in Munich take up a frontline
position among the most successful
and most advanced carmakers in the
world. With top quality and sports
vehicles they secure record figures on
the market (increase in sales 1998–
2002: BMW 31%, Audi 68%). This success
is based on continuous innovation.
Both companies are pioneers in the
application of new materials, in stateof-the-art
information and driver
assistance systems, and in the reduction
of fuel consumption and emissions.
They set the pace in the world when it
comes to design.
■ In the sector of commercial vehicles
the Bavarian manufacturer MAN enjoys
an excellent reputation based on
advanced technology and highest
quality.
Superior supplier expertise
The top performance of Bavarian automobile
manufacturers can only be accomplished
in a network of outstanding suppliers.
All in all there are about 1,000 companies
operating in the automotive sector
in Bavaria—approximately 180 of these
are “Tier 1-4” suppliers.
Core excellence:
■ Electronics and electrical engineering
■ Mechanical engineering and power
systems
■ IT and Software
■ Metal processing and lightweight
engineering
■ Plastics processing
■ Textiles and chemical fibers
■ Ceramics and glass
“Three main reasons
for realizing our project
in Bavaria are:
1. Market: our most
important market is
Germany and we want
to be near to our
customers.
2. Technology, R&D:
For our work the
neighbourhood of
research institutes,
universities and hightech
centers is of
high importance.
3. We want to be where
the decisions are made.
Pedro Alonso,
Chairman INFUN Group
Barcelona, Spain

Using synergies
Industry structure:
effective, innovative, flexible
■ Five of the world’s “TOP 100“ companies
are based in Bavaria (Siemens VDO
Automotive, INA, Brose, ZF Sachs,
Webasto).
■ Bavaria is home to renowned companies
with strong traditional roots such as
Dräxlmaier (Interiors, Electronics), FTE
Automotive (brakes and clutch systems),
Grammer (Interiors), Leoni (cables),
Rehau (plastics) or Scherdel (springs).
■ All major international companies have
subsidiaries in Bavaria (e.g. Delphi,
Bosch, Denso, Lear, Johnson Controls,
Faurecia, Arvin Meritor, Federal Mogul,
VALEO, INTIER, TRW Automotive).
■ Many small and medium-size enterprises
benefit from the competitive
location and are efficient partners for
special solutions.
Strong networks
BAIKA, the “Bavarian Innovation and
Cooperation Initiative for the Automotive
Suppliers Industry“ is an active network
promoting cooperation between automobile
manufacturers, system suppliers
and Tier 1-4 suppliers. 8 automobile manufacturers
(Audi, BMW, DaimlerChrysler,
Ford, Opel, Peugeot, Renault, VW) and over
1,450 international automotive component
suppliers—including the “Top 10” of the
world cooperate with BAIKA. The focus
is on innovation through cooperation, technology
transfer, information validation
and qualification. The services offered
include work groups, cooperation
platforms, qualification measures and
support in international cooperation.
(www.baika.de)
Science, research and training:
productive partners
In Bavaria we focus on clustering of
research activities and making these
activities available for industrial
application. Bavarian top-level research
means market success.
■ The Munich Technical University plays
a key role for the automotive industry.
Cooperation projects relate to topics
such as flow dynamics, materials,
thermodynamics, combustion engines,
embedded systems, production
engineering or telematics. One institute
is working on virtual production.
A good example of sustainable
business policy
is the freight village (GVZ)
located right on our
factory’s doorstep in
Ingolstadt. The investor
is the city’s own business
support company, the
users are supplier companies
and, of course,
Audi itself. The GVZ saves
the region many thousands
of truck trips
every year and actually
incorporates its own
freight terminal. This
freight village with its
2,500 jobs distinguishes
a future-oriented business
policy which equally
considers the requirements
of people, the environment
and the industry.
Erich Schmitt,
Member of the
Management Board of
AUDI AG / Purchasing
■ A further 8 universities in Augsburg,
Bamberg, Bayreuth, Erlangen-
Nuremberg, Munich, Regensburg and
Passau provide specific know-how
relating to the automotive sector and
experience with industry projects.
■ In Bavaria there are 17 universities
of applied science ready to assist
the automotive sector in applicationoriented
development.
■ Major other R&D partners are the DLR
Research Center Oberpfaffenhofen
and 4 Fraunhofer Institutes in Munich,
Erlangen and Würzburg.
New Materials: Cohesive excellence
High performance materials are
frequently a prerequisite for product and
process innovation in a world market. The
Center of Excellence in New Materials,
Northern Bavaria, focuses on this key
technology. The Center is situated in the
triangle of leading performance materials
locations Bayreuth—Fürth/Erlangen—
Würzburg. In this location scientific and
technical know-how in materials technology
are combined and new products
and new methods for industry are developed
in the fields of metals, polymers,
ceramics and composite materials. The
services are commissioned by and in
cooperation with companies and offered
on a fixed schedule basis with a guarantee
of confidentiality. State-of-the-art
laboratories and test centers are available
through all stages of the value added chain:
from the initial idea up to the industrial
solution and on to small series production.
Key emphasis:
■ Lightweight materials
■ Tribology and corrosion
■ Multi-functional materials
■ Materials in power engineering
(www.neue-materialien.de)
Incentives for R&D and innovation
Bavaria offers extensive incentives
for research and development through
the Bavarian research foundation
(Bayerische Forschungsstiftung) in
addition to general technology programs.
Example: “New Materials” and “Microsystems”
programs for the promotion of
joint projects in the development of new
materials or electronic components. In
this way Bavaria supports future oriented
technology.

Bavaria—truly in the center of Europe
REP. OF
IRELAND
SPAIN
NORWAY
UNITED
KINGDOM
NETHER-
LANDS
BELGIUM
GERMANY
POLAND
CZECH REP.
BAVARIA SLOVAKIA
FRANCE
SWITZERLAND
AUSTRIA
HUNGARY
SLOVENIA
ITALY
SWEDEN
ESTONIA
LATVIA
DENMARK LITHUANIA
Bavaria is situated right in the
center of Europe
A first class transportation infrastructure
guarantees that final assembly plants
of automobile manufacturers, various
supplier locations and major markets
throughout the world can be reached
quickly and with ease. Because of the
proximity to the new member countries
of the European Union in Central and
Eastern Europe and extensive know-how,
Bavaria is an excellent springboard into
the new and rapidly expanding markets.
“Just in time”: Logistics excellence
Transportation and logistics are seamless
in Bavaria. It is here where innovative
solutions for logistics requirements have
a longstanding tradition.
■ Highly efficient transportation
companies offer the entire logistics
service spectrum.
■ A large number of medium-size
carriers offer special solutions.
■ Extensive know-how and modern
solutions for sophisticated requirements
in supply chain management of automobile
manufacturers is available.

Consistent investment conditions and high quality of life
Living and working
where others go on vacation
The Alps, lakes and forests, castles,
churches and historic cities coin a unique
cultural landscape. This is where authentic
Bavarian charm and international flair
merge in a wonderful symbiosis. There
are multiple leisure possibilities—every
possible form of sporting activity, cultural
events in galleries, opera houses and
museums and, of course, the famous
Bavarian cuisine.
(www.bayern.by)
Quality of life requires a maximum degree
of safety and political stability. Therefore,
social harmony and a pro-business
environment are cornerstones of Bavarian
policy.
Contact
Address
Phone
Fax
E-mail
Internet
Bavarian Ministry of
Economic Affairs, Infrastructure,
Transport and Technology
Dr. Markus Wittmann
Prinzregentenstrasse 28
80538 Munich, Germany
+49 89/21 62-26 42
+49 89/21 62-28 03
info@invest-in-bavaria.de
www.invest-in-bavaria.com
Invest in Bavaria— a joint project between the
Bavarian Ministry of Economic Affairs, Infrastructure,
Transport and Technology and Bayern International
Edition 03/2004
Publisher: Bayern International GmbH, Print: Mediengruppe Universal, München
Für Bildmaterial bedanken wir uns bei: Audi AG, Archiv Bayerischer Tourismus Verband e. V., BMW AG, Robert Bosch GmbH, Dräxlmaier Group, FTE automotive, INA-Schaeffler KG, Rehau Ag+Co., Siemens VDO Automotive AG, Webasto AG

Location with added value
Supplier Park “Hochfranken”:
Top in Bavaria
Hochfranken unites ...
■ Top location in Northern Bavaria
■ Top industry environment
■ Top excellence in research,
development and innovation
■ Top availability of manpower with high
productivity and a moderate wage level
■ Top cost-benefit based on
accommodating real-estate prices
and low cost of living
■ Top incentives: for new recruitments or
expansions, investment grants of up to
28% are available from regional support
programs for SME’s and up to 18%
for larger companies.
The launch of the Automotive Component
Supplier Park Hochfranken in 2003 helped
in the decision by Altec GmbH—a subsidiary
of the Spanish INFUN Group—to
locate in Hof. With an investment of
approx. Euro 40 million, the world’s most
advanced factory for aluminium and
magnesium diecast parts for the automotive
industry is built in Hof.
Paris
Brussels
FRANCE
Am A
NETHE N ERLA ER
BELGIUM
Cologne
Frankfurt
Stuttgart
Hamburg
Hanover
UPPER UPPER
FRANCONIA
BAVARIA
A A 9
Munich
Berlin
A 72 72
Supplier Park with Engineering Center: Cooperation and Innovation
Automotive Component Supplier Park Hochfranken
■ 360 acres site: fully developed,
ready for building
■ direct connection to the “Autobahn”
Cooperation platform—core of the supplier park:
Automotive Engineering Center Hochfranken
■ the provision of state-of-the-art,
capital-intensive testing facilities
for flexible use—full confidentiality
guaranteed,
■ the opportunity for competence pooling
through cooperation projects,
A 93
POLAND
CH REPUBLIC
■ moderate real-estate prices
■ buildings available upon specific
request
(www.gewerbepark-hochfranken.de)
The Automotive Engineering Center helps automotive suppliers to realize
benefits in cost, innovation and time through
■ fast and direct access to expertise
and know-how in industry and
science,
■ a creative environment for the
transfer of research results to
series production.
The Automotive Engineering Center Hochfranken and the adjacent supplier
park is an ideal first base in the Bavarian, German and European market due to
the availability of high-end equipment for flexible use—tailor-made for the
requirements of users—an advantageous business environment and access to
comprehensive networks.
Vienna