The Bavarian carmaker is receiving support from Christian Helmenstein of the Economica Institute. Even in 2050, combustion engines will still make up 50 percent of the world’s car fleet – fortunately for Austria, which is very strong in the conventional engine sector. A lot of workers will depend on this, says Helmenstein.
269,900 people are directly employed in the automotive industry, plus 159,000 jobs in the surrounding area, making a total of 428,900 jobs. The total also includes petrol station operators and car insurers, explained the economist. In any case, the automotive industry in Austria directly employs more people than the retail or energy sectors.
40 billion euros gross value added
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The figures for gross value added are also impressive, which would amount to 40 billion euros per year – with Austria’s total gross value added of around 450 billion euros. “These are breathtaking dimensions,” said the economist to journalists on Thursday. And he made it clear: Austria has a “high-performance economy,” but its future hangs by a “thread.” The automotive industry is facing massive changes, not least due to China’s pressure on international markets.
The transformation of the drives could lead to a significant reduction in personnel in Austria – between 9,100 and 45,900 jobs could be affected. Helmenstein explained the high fluctuation range by saying that there is great uncertainty about where things are headed. This is why technological openness is so important. Elisabeth Zehetner from oecolution Austria echoed the same sentiment today. She said that “it’s not easy to stand on one leg”. “We need several options,” said Zehetner.
BMW sees itself confirmed
BMW sees this as confirmation of its policy of sticking with the combustion engine – while simultaneously expanding e-mobility. Klaus von Moltke, head of the BMW engine plant in Steyr, stressed: “It is important that production develops hand in hand with customer demand.” And support from the state is also important, such as an increase in the investment allowance and the research premium. Austria is excellently positioned in research and development in the automotive sector, said Helmenstein. This lead must be maintained.
Otherwise, it would be difficult to keep up with the Chinese anyway, because they are superior to the European automotive industry in terms of the framework conditions. The price of gas alone would be one fifth of that of the competition. A decisive competitive advantage is also the vertical integration in value creation – from raw materials to servicing. “95 percent of the value creation in Chinese electric cars happens in China itself,” the economist calculated.
Diesel market stable worldwide
Regarding the declining European registration figures for pure diesel cars – every third diesel engine in a BMW worldwide comes from the Upper Austrian industrial city of Steyr – von Moltke noted that the global diesel market is stable. “Our engine is still important,” said the head of the engine plant. He emphasized that research into the diesel engine is continuing in Steyr.
BMW Austria broke the billion-euro sales mark last year, and the Bavarians were third in Austria in terms of new registrations. In the pure electric market, BMW was number 2 behind Tesla. “The majority of developers in Steyr say they are already active in the field of e-mobility research, and by 2030 this figure should be over 90 percent.”
ePaper
Austria automotive industry
The Austrian Automotive Industry: A Pillar of the Economy
The Austrian automotive industry is a significant contributor to the country’s economy, with a total turnover of over 16 billion euros in 2020 [[1]]. The sector employs around 200,000 people, with an impressive export quota of 85% in 2022 [[2]]. The industry is represented by the Federation of the Austrian Automotive Industry and its Component Suppliers, which consists of approximately 900 companies [[3]].
Economic Importance
The automotive industry is a vital part of Austria’s economy, directly employing more people than the retail or energy sectors. According to Christian Helmenstein of the Economica Institute, the sector provides a significant gross value added of 40 billion euros per year, which is approximately 9% of Austria’s total gross value added of around 450 billion euros. This demonstrates the industry’s importance to the country’s economy.
Workforce and Job Security
The automotive industry in Austria is a significant employer, with 269,900 people directly employed in the sector, and an additional 159,000 jobs in the surrounding area, making a total of 428,900 jobs. However, the industry is facing massive changes, particularly with the increasing pressure from China on international markets. The transformation of drives could lead to a significant reduction in personnel in Austria, with estimates suggesting that between 9,100 and 45,900 jobs could be affected.
Research and Development
Austria is well-positioned in research and development in the automotive sector, with a strong focus on conventional engine technology. The industry is facing increasing pressure to adapt to changing market conditions, and technological openness is crucial in this regard. Klaus von Moltke, head of the BMW engine plant in Steyr, emphasized the importance of production developing hand-in-hand with customer demand, and the need for support from the state, such as an increase in the investment allowance and the research premium.
Diesel Market and Electric Mobility
The diesel market is stable worldwide, with every third diesel engine in a BMW worldwide coming from the Upper Austrian industrial city of Steyr. Research into diesel engine technology is ongoing in Steyr, and the industry is also expanding into e-mobility. BMW Austria broke the billion-euro sales mark last year, and the company is number two in the pure electric market behind Tesla. By 2030, the majority of developers in Steyr expect to be active in the field of e-mobility research.
Conclusion
the Austrian automotive industry is a significant contributor to the country’s economy, with a strong workforce and a focus on research and development. While the industry is facing challenges, particularly with the increasing pressure from China, technological openness and adaptation to changing market conditions are crucial for its future success. By maintaining its lead in research and development, the industry can continue to thrive and provide a significant gross value added to the Austrian economy.
The Thriving Austrian Automotive Industry: A Key Driver of the Country’s Economy
The Austrian automotive industry is a significant contributor to the country’s economy, with a production value of EUR 28.5 billion and approximately 200,000 employees in 2022 [[1]]. The industry’s gross value added is an impressive 40 billion euros per year, making up around 9% of Austria’s total gross value added of around 450 billion euros [[4]]. This figure is a testament to the sector’s importance in maintaining Austria’s high-performance economy.
Industry Employment and Gross Value Added
The automotive industry is a significant employer in Austria, with 269,900 people directly employed in the sector, and an additional 159,000 jobs in the surrounding area, making a total of 428,900 jobs [[4]]. This number includes not only those working in manufacturing but also petrol station operators and car insurers. In fact, the industry directly employs more people than the retail or energy sectors, highlighting its importance in the Austrian labor market.
Challenges and Opportunities in the Industry
Despite its significance, the automotive industry is facing massive changes, largely driven by China’s pressure on international markets. The transformation of drives could lead to a significant reduction in personnel in Austria, with estimates suggesting that between 9,100 and 45,900 jobs could be affected [[4]]. To mitigate this impact, technological openness is crucial, and Austria must maintain its lead in research and development in the automotive sector.
Austria’s Strength in Conventional Engine Sector
Fortunately, Austria is very strong in the conventional engine sector, and combustion engines are expected to still make up 50% of the world’s car fleet in 2050 [[4]]. This bodes well for the country’s automotive industry, which is well-positioned to take advantage of this demand. The diesel market, in particular, remains stable worldwide, with every third diesel engine in a BMW worldwide coming from the Upper Austrian industrial city of Steyr [[4]].
BMW’s Commitment to Austria
BMW, a leading automotive manufacturer, is committed to maintaining its operations in Austria, with its engine plant in Steyr being a key contributor to the country’s automotive sector. The company sees the stability of the diesel market as confirmation of its policy of sticking with the combustion engine while simultaneously expanding e-mobility [[4]]. Support from the state, such as increases in investment allowance and research premium, is crucial in maintaining Austria’s competitive edge in the automotive sector.
Austria’s Automotive Industry Outlook
the Austrian automotive industry is a vital component of the country’s economy, with significant employment numbers and gross value added. While the sector faces challenges, Austria’s strengths in the conventional engine sector and its commitment to research and development position it well for future success. As the industry continues to evolve, it is essential for Austria to maintain its lead and adapt to changing market conditions to ensure the continued growth and prosperity of the automotive sector.
References:
<a href="https://en.wikipedia.org/wiki/Category:MotorvehiclemanufacturersofAustria”>[2]
[4] (original article)
