austrian automotive industry status quo april .austrian automotive industry status quo april 2010

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  • Austrian Automotive Industry Status Quo April 2010

    Austrian Trade Commission Chicago Franz Rssler/Margit Mills

    Tel. 312 644 5556 Chicago@advantageaustria.org

  • Austrian Trade Commission

    April 2010

    2010 Austrian ECONOMIC Outlook ....................................................................3

    Austrian Motor Vehicle Industry .......................................................................3

    Why is the Auto Industry so important for Austria? ...............................................4

    Taxation, Environment and Transport Policies .....................................................5

    Scrapping scheme: ................................................................................................ 5

    Climate Active mobile program ................................................................................ 5

    Biofuels ............................................................................................................ 5

    IGL (Immissionsschutz-Gesetz Luft)............................................................................ 5

    Recent Developments in the Motor Vehicle Industry..............................................6

    New vehicle Registrations ....................................................................................... 6

    Motor Car Production in Austria ............................................................................... 7

    Employment in the automotive industry ...................................................................... 8

    Austrian Car Manufacturer Plants .....................................................................8

    General Motors Europe .......................................................................................... 8

    Magna Steyr ....................................................................................................... 9

    Fiat Group ....................................................................................................... 10

    BMW Group ...................................................................................................... 10

    MAN Nutzfahrzeuge ............................................................................................ 11

    New Technologies, Austrians in the News ......................................................... 12

  • Austrian Trade Commission

    April 2010

    2010 Austrian ECONOMIC Outlook

    Europe in general needs a vibrant manufacturing industry to spark the economic recovery, innovation and growth required to meet the societal and environmental challenges which lie ahead. Manufacturing provides a fifth of EU GDP and provides three quarters of EU exports. Over 80% of the EU private sector research and development expenditures are provided by industry. Manufacturing firms are also key clients of many services activities. Many of the services jobs in the EU would be lost without a strong industrial base. The Automotive industry is currently one of the hardest hit sectors of the real economy in a recession triggered initially by the financial crisis. The downturn in the automotive sector will have lagged second round effects, because the automotive industry has one of the largest multipliers (creating economic activity in other parts of the economy through the supply of materials and tools as well as through vehicle sales, after sales services and in transport related business). In Europe, by January 2009, vehicle sales were running 3.5m units lower than the trend rate. This shock, combined with a synchronized crash in key automotive export markets, has brought reality beyond worse case pre-crisis planning of even the most cautious manufacturers. The automotive industry is characterised by low margins, high fixed costs (which include labor) and high capital expenditure commitments for new (low emissions) technologies. Given the tightness in the financial markets, many manufacturers will approach or breach technical bankruptcy.

    Austrian Motor Vehicle Industry

    On the back of the worldwide recovery, Austrian volume exports and industrial output should rise by some 4% each in 2010. Unlike in many other EU countries, private consumption in Austria remained upward bound (+0.4% in volume in 2009) even during the recession, thanks to substantial real wage gains, higher social transfers and income tax cuts. The cyclical recovery in Austria promises to be slow and may suffer temporary setbacks. WIFO (sterreichische Institut fr Wirtschaftsforschung, Austrian Institute for Economic Research) expects a real GDP growth of 1.5% on annual average 2010 and a hardly stronger momentum in 2011 (+1.6%). Such flat upward trend will not allow unemployment to decline, given that labor supply is boosted by a growing population of working age and a high reserve of discouraged jobseekers. Even if employment growth should tentatively resume, registered unemployment will rise to nearly 300,000 in 2011 (+70,000 persons in labor market training). Unemployment will by then reach 8.1% of the dependent labor force (national definition), the highest rate since 1953, with the risk of the bulk of the recession induced lay-offs becoming long-term unemployed. The economic crisis also leads to a jump in the government deficit. The slump in tax revenues and the cost of fiscal stimulus programs will weaken the general government balance to a gap of 5.2% of GDP in 2010. A slight improvement to a deficit of 4.8% of GDP is expected for 2011 as tax revenues should recover with employment picking up and assuming restraint in government expenditure. Source: WIFO Vienna, 18 December 2009 Austrian car industry suppliers face a scramble to survive as European markets become less important in future (a top industry research body warned). The German Centre for Automotive Research (CAR) stated that two-thirds of the Austrian car industry exports currently go to Germany but that the market will massively decline in importance in future years.

    http://www.neurope.eu/articles/98435.php

  • Austrian Trade Commission

    April 2010

    Austrian car industry experts have urged suppliers to review their business focuses. Consulting firm McKinsey has warned that car producers are facing an avalanche of costs owing to overcapacity and higher expenses for development and production. The economic and financial situation remains the biggest challenge for car and commercial vehicle makers in 2010. At the same time, motorized society is going through an important transition towards more sustainable mobility. The Austrian automobile industry plays a pivotal role in Austrias economy, driving wide-scale industrial activity, boosting investment and innovation and bolstering economic growth.

    Why is the Auto Industry so important for Austria?

    Whilst a significant contributor to Austrias economy and society, the automotive industry will continue to face major political and societal demands and economic challenges. Among them is the call for making road transport more sustainable by decarbonising it in the long-term and continuously improving road safety. The rapid globalization of economic activities and the fast pace of technological changes puts further strong pressures on the sector as well. The automotive industry is and must continue to be a technology leader, providing attractive and durable mobility solutions for the transport of individuals and goods. The main challenges of today are to achieve these goals in a sustainable, competitive and affordable way. A lot of effort and resource has and will continue to be directed towards the efficient and responsible use of natural resources, and reducing the environmental impact of transport as a whole. The Austrian automotive industry is aiming to sustain and enlarge its leadership in this field and increase the recognition of its vital contribution to today's and tomorrow's society. Legislative and technological advances in environmental standards and safety mean that cars are cleaner and safer than ever before. If the industry is to remain competitive in the future, it will need to adapt ever more swiftly to changing demands from consumers, regulators, shareholders and society as a whole. Continuing to invest in R&D and to explore innovative technologies will be key, just as well as continued training to maintain a highly skilled workforce. All this requires the collaboration of the different parts of the supply chain, including Small and Medium-Sized Enterprises, as well as the mobilization of large resources. Austria is taking an integrated approach and the key to success for the Austrian automotive industry will be to remain a sustainable, competitive and world-leading sector in the long term. Innovation & Education Automotive is the leading force of innovation. Sales & Services Cars and commercial vehicles generate a wide variety of services. Transport & Commerce Moving people and goods spurs economic activity and public services Fuels & Electricity Transport and energy demand are closely intertwined. Manufacturing & Employment Automotive is the engine of manufacturing in Europe. Driving & mobility Automobiles have unlocked an unprecedented level of mobility. Roads & Infrastructure Infrastructure connects people, businesses, countries and cultures. Taxes & Revenues Automotive and mobility are a major source of income for governments

  • Austrian Trade Commission

    April 2010

    Taxation, Environment and Transport Policies

    Scrapping scheme: The "koprmie" (eco-premium) while most of the public referred to it simply as "Abwrackprmie" (scrappage premium) was introduced on April 1, 2009, and it allowed customers for 1,500 cash if the