ACEA

- AUSTRIA

Reputation for excellence

Even though Austria does not have a car brand of its own, its automotive industry enjoys a global reputation for excellence. Austria has a strong reputation for quality in the supply of components and in automotive research and development. The country is also a prominent example for the benefits of concentrated clustering of related industrial activities. Automotive clusters in Styria, Upper Austria and Vienna have helped to maximize innovation, efficiency and flexibility among Austria’ components suppliers which generate roughly €33 billion in sales every year.

Styria’s long tradition in automobile manufacture began over 100 years ago. The key founder was Steyr Daimler Puch, which is now operating as Magna Steyr Fahrzeugtechnik. BMW opened its first engine plant in Steyr, Austria in 1982 while, in the same year, General Motors opened an engine and transmission plant in Vienna. Upper Austria is home to KTM, one of the world’s leading manufacturers of off-road motorcycles while MAN is manufacturing utility vehicles.

Small market but a key industry

At the present time there are more than 175,000 people engaged in the sector while total indirect employment stimulated by the automotive industry is put at 296,000 people – just under 10% of the labour force. The 700 companies in the supply industry generate a turnover of some €20 billion.

The domestic market is small - 308,594 new cars were registered in 2006 – encouraging Austrian companies to become significant exporters to the tune of 242,211 cars in 2006 (7.9% above 2005).

The clusters

The Austrian automobile industry has three heartlands, in the greater Vienna area and in the provinces of Styria and Upper Austria. These clusters have been successful enough to serve as models for several other regions in Europe. They serve as specialist production platforms whose R&D activities and links to higher education institutions create and drive the momentum for innovation. While Vienna is a centre for vehicle interiors and electronics, activities in Upper Austria focus on engine manufacturing, and in Styria on automobile manufacture.

Styria has long been a key centre and has attracted a large number of suppliers to the area. In 2006, Magna Steyr in Graz built nearly 240,000 vehicles for its customers Mercedes, Chrysler, BMW and Saab. Employment directly attributable to the motor industry has grown from 20,000 to 30,000 in the last ten years.

The 245 companies in the Upper Austrian cluster are spread out over a much wider area than those in the Graz area. The cluster platform provides companies with easier access to information on trends and industry developments, on specialist fairs, and on topics such as qualification and training programmes for specialist personnel. The province’s promotion and funding programme is also run through the cluster.

A driver of R&D

The automotive sector has also a significant impact on national research and development activities. In total, the industry spends nearly €400 million on automotive R&D, employing more than 2200 people in the sector. Austrian Research Centers, with around 500 employees and comprising a total of 7 members, is Austria's largest research establishment. Its main activities in the automotive field cover development and testing of aluminum components, powder metallurgical processes, factory organisation, traffic telematics, plastic materials for exterior vehicle parts and energy supplies for electric and hybrid vehicles. Joanneum Research, with more than 360 employees, is the largest independent R&D company, carrying out research ranging from applications in acoustics to laser technologies. Moreover, the Joanneum Polytechnic offers a course in vehicle technology and automotive engineering. The Vienna University of Technology is also very active in the field of emissions and new propulsion systems, while the Graz University of Technology has established its own research focus on vehicle drives and safety, through a network of several "centers of competence".