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Nora Miethke
Jobs are being lost, plant closures are imminent. German car manufacturers are currently under massive pressure. Volkswagen, which employs around 12,000 people at its three sites in Dresden, Chemnitz and Zwickau, has terminated the job security that has been in place for decades. Saxony's suppliers are also feeling the effects of these developments. In the first seven months of this year, turnover in the automotive industry in the Chemnitz chamber district fell by 23 percent. "Something has to happen," says Martin Witschaß, Managing Director of Location Policy at the Chemnitz Chamber of Industry and Commerce. One in four jobs in the region depends on the automotive industry.
Witschaß and the network managers of the Saxon automotive supplier association AMZ have concrete ideas about what is needed now. "The entire automotive ecosystem needs an investment boost to compensate for competitive disadvantages, otherwise the industry will gradually move away," warned Andreas Wächtler from AMZ on Wednesday in a press conference ahead of the annual "Automotive Forum Zwickau" congress on November 5 and 6.
More political support for transformation in the automotive industry
Wächtler was unable to quantify exactly how strong this boost would have to be. But investments would have to be made in process engineering, automation, digitalization and energy, among other things. An investment grant program from the federal and state governments would be needed to support the unsettled companies. In the automotive region of south-west Saxony, more than 550 industrial companies with around 62,000 employees are affected by the change. However, there is only funding of 8 million euros for the ITAS transformation project, whereas around ten billion euros are available for the transformation process in Saxony's coal regions, even though only around 10,000 people work in coal mining. "I expect more support and a greater investment boost for the region," said Wächtler.
But it's not just about additional funding. AMZ Network Manager Dirk Vogel calls for more speed in approval processes. "Why can't Saxony be a benchmark for administrative decisions, more digital, more transparent, faster?" Vogel suggests. This would help all companies and at the same time reduce the effort and personnel requirements in the administration.
Pure production sites in particular are at risk of relocating due to high energy and labor costs. This is why Vogel is calling for the future state government to primarily support companies in the coming years that merge, grow and establish their own headquarters with development departments in Saxony. "This will make the ecosystem more attractive for research," says the AMZ expert.
Electricity prices and toll charges must be right
One example is WP Holding GmbH, based in Zwickau. The logistics service provider employs around 1,000 people, 200 of whom are based in Zwickau. The group of companies has tapped into new business areas with battery storage technologies and the recycling of lithium-ion batteries. An electric truck has already been purchased and the transport company is open to switching to other e-vehicles, emphasized Managing Director Doreen Paesold-Runge. This could also pay off without subsidies, but then the costs would have to be right in other areas, such as the price of electricity or tolls. According to FES GmbH Fahrzeug-Entwicklung Sachsen, the first fuel cell truck has been made ready for series production - without state funding. "Our new development is an important step towards emission-free freight transport," said Managing Director Christian Schwamberger. The company, which employs 850 people, is currently preparing to manufacture the 18-tonne truck, with the first deliveries scheduled for 2025.
Chemnitz industrial region needs connection to hydrogen distribution network
Martin Witschaß from the Chemnitz Chamber of Industry and Commerce warned that the hydrogen infrastructure must be expanded in order for investments in such vehicles to pay off. This includes the expansion of supra-regional hydrogen pipelines with corresponding exit points in the region, but also a network of hydrogen filling stations to enable the switch from diesel trucks to trucks with fuel cells.
The AMZ is keen to show that, despite setbacks, the transition to electromobility offers opportunities for Saxon companies and opens up new prospects for the future. Christian Sommer, Head of Communications at Volkswagen Saxony, would like to see Saxony become more visible in the national debate with these experiences.
