ACEA

- FINLAND

Small but productive

Although small, the Finnish automotive industry is remarkably productive and varied. In addition to cars and trucks, it produces trailers and military vehicles and supplies components such as tyres and glass to the OEMs and after-sales markets.

Two automotive manufacturing plants are currently operating in the country: Valmet Automotive, a contract manufacturer of passenger cars (Porsche) and Sisu-Auto, a truck manufacturer. Valmet in particular has built a reputation on its ability to bring new products to market rapidly and build several different car models at once on the same production line.

Finland went through a period of deep recession at the beginning of the 1990s, resulting in a drastic decline in automotive sales. However, by the middle of the decade, the country’s economy had made an impressive recovery and the automotive sector has gone from strength to strength.

For most Finns, a car’s most important features are durability, safety (for large cars) and price (for middle range cars). Approximately 80 per cent of new cars purchased are lower and upper middle range automobiles.

The Finnish automotive industry currently provides around 18,000 jobs in a country where total employment stands at 2.45 million. In 2004 its annual turnover was €1,076 million and attracted investments amounting to €36 million. In the same year, Finland produced 21,233 cars and 411 commercial vehicles, representing 21,644 vehicles in total.

The average Finn travels 14,600 km a year, of which 11,900 km (82 per cent) is travelled by car and 870 km (6 per cent) by bus. The share of road transport is more than double that seen in the rest of the EU. This can be partly explained by the Finnish economy’s strong reliance on transport-intensive industries, which is amplified by long distances and a sparse population. According to a logistics survey carried out in 2006, logistics costs represented on average 13 per cent of turnover (equivalent to €26.4 billion).

* only direct employment; total employment depending on automotive sector is around five times higher

Exporter to regional markets

Finland’s impressive economic recovery has also had a positive knock-on effect in the parts & accessories sector.

Some accessories, such as air-conditioning, internal design materials and light metal wheel rims are purchased for prestige reasons. However, several car manufacturers have these factory-installed to enhance sales or offer special design packages with different combinations of accessories to choose from.

Vehicle manufacturers import about one half of total automotive parts and accessories. The other half is imported by independent automotive parts and accessories dealers/agents. Well over 10 per cent of total imports of automotive parts and accessories are re-exported to Russia and the Baltic States. Major EU suppliers include Germany, Sweden, and Great Britain. Suppliers outside Europe are most frequently from Japan and Taiwan, with approximately 4 per cent of total imports coming from the United States.