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Saskia Schwarzer | Manager Relocation & Business Development

Automotive: a strong sector

The Porsche Macan rolls off the production line in Leipzig. Porsche CEO Matthias Müller (left) poses with Sigmar Gabriel at the official opening.

This sector has undergone a particularly dramatic development since the arrival of the Porsche factory between the freight hub and the airport in 2002. The second premium German manufacturer, BMW, followed in 2005 with the construction of a new factory, also in the north of Leipzig. The two factories underwent considerable extensions soon after the start of production: both contain stamping plants, while BMW also established its Competence Centre for Electromobility in Leipzig. Porsche is currently manufacturing the Cayenne, Panamera and Macan series here, while BMW is producing the 1 and 2 series, the i3 electric model and the i8 hybrid. The two factories are integrated into the relevant group's production network worldwide and benefit from the corresponding supply chains.

While Porsche has around 2,500 employees and the BMW factory in Leipzig has 4,000 members of staff, numerous suppliers and service providers have also established themselves in the vicinity of the two factories for the just-in-sequence delivery of modules and parts, with some being integrated directly into the factory logistics and assembly activities. BMW has also awarded a long-term major contract to the Schenker Group for CKD activity. This means that vehicles are completely disassembled and prepared so as to be suitable for shipping to South Africa and China in containers.

For the approximately 170 suppliers in Central Germany and Leipzig, industry networks such as the Automotive Cluster of East Germany (ACOD) and AMZK (network for suppliers of plastic automotive components in Saxony) take on an important integrating function. In addition, the numerous universities in Leipzig and the neighbouring towns are involved as research and development partners.

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Sector profile

The automotive sector in Region Leipzig is characterised by the production of high-quality motor vehicles in the factories of the two premium brands of BMW and Porsche. The series production of top technological products is based on the use of the latest technological innovations (use of carbon in car body production, installation of hybrid drives in several series as standard, electromobility in new BMW series). All levels of manufacturing comply with the latest ecological guidelines and environmental requirements relating to modern processes and procedures. The breadth and depth of manufacturing meets the global standards for premium locations. A range of highly specialised, predominantly medium-sized suppliers, as well as internationally renowned major suppliers, is closely integrated into the manufacturing networks of the production facilities. Just-in-time and just-in-sequence are binding standards for the manufacturing and logistics processes of specialist producers of individual parts and pre-assembled components. Expertise in the field of engine casting for the commercial vehicle industry ranks as a competitive advantage in the economic region.

Research

In this academic centre, taking the profile of the University of Leipzig and the other higher education institutions as a starting point, research is provided to meet the needs of the automotive sector: research services focus on the networking of production and logistics processes, and as a result on creating stronger links between production sites and the global flow of goods. For example, at the Leipzig Graduate School of Management, the practically relevant foundation Chair for IT and Logistics influences the profile of the private and university-based Business School.

Networks

 

Invest Region Leipzig GmbH

Managing Director Michael Körner
Markt 9, 04109 Leipzig
Tel.: +49 341 268277-70
Fax: +49 341 268277-99

Chairman of the Board of Partners
District Mayor Burkhard Jung
Chairman of the Supervisory Board
Mayor Uwe Albrecht

A subsidiary of the city of Leipzig, Leipzig Chamber of Commerce and
Industry and the district authorities of North Saxony and Leipzig.