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- DENMARK
National Association: DK BIL
High tech solutions and a skilled workforce
Cars have not been produced in Denmark since the last Ford assembly line ceased operations back in the 1960s. However, the country has developed a highly successful business-to-business components and car parts sector supplying a wide range of products and high technology solutions to car plants right across the European Union.
The provision of high tech solutions is the Danish automotive sector’s added value and makes it something of a ‘niche’ market. The emphasis on innovation requires a skilled workforce and flexible working practices such as the cluster model. This refers to the possible exchange of workers between companies in a given ‘cluster’ parallel to peaks in production or the need for special skills.
There are several automotive production clusters operating in Denmark. The Hydro Aluminium cluster (Alucluster) in Southern Jutland works with aluminium automotive parts and forms, while Dinex, one of the leading European suppliers of automotive after-market exhaust products and emission control systems works as part of a cluster for the development of advanced filter technology for exhaust pipes.
The Danish automotive sector is also characterized by its numerous joint ventures. Two of Southern Denmark's largest industrial companies, Danfoss A/S and Hydro Alunova - a subsidiary of Hydro Aluminium – recently joined forces in a joint venture to develop components for air-conditioning systems in cars. Over the period 2005-2008, they will produce a range of flexible aluminium tube components for air conditioning systems in cars, which are required in order to phase out the HFC refrigerant R134a and replace it with the environmentally-friendly CO2 alternative.
| Denmark | |
| Automotive employment* | 5,400 |
| Car tax revenues (€ bn) | 47.1 |
| as share of GDP | 21.4% |
| Car fleet (in 1,000) | 1,961 |
| Car density (per 1,000 population) | 366 |
* only direct employment; total employment depending on automotive sector is around five times higher
Intelligent Transport Solutions
The Danish automotive industry is highly specialised in the production of Intelligent Transport Systems (ITS). The organisation ITS Denmark brings together all Danish stakeholders in the field, basing on the assumption that increasing traffic flows will make ITS an increasingly relevant instrument over the coming years. With its focus on navigation systems, dynamic traffic information, location-based services, automatic payment systems, intelligent adjustment of speed and fleet management ITS has the potential to transform the way Europe thinks about cars and the automotive industry.
