Transformation to the electric car: Auxiliary network for automotive suppliers

Despite government subsidies and manufacturer discounts, it took a while, but now the automotive world is visibly changing.

On the streets, more and more almost silent electric drives are heralding a new age of mobility.

And Opel, for example, will also be building the new Astra compact car in Rüsselsheim as a pure electric car from the end of the year; the conversion of the plant is considered to be the most extensive in the history of the site.

But in addition to the large automotive groups, small and medium-sized suppliers in particular have to learn to deal with the challenges of this change, because an electric vehicle consists of fewer components than a gasoline or diesel engine. One of the regions that could come under more pressure than others is a council of experts from the federal government, including Central Hesse.

There are around 180 to 200 automotive suppliers in the entire region, Jens Ihle, Managing Director of Central Hesse Regional Management, who are likely to be directly or indirectly affected by the transformation.

But Ihle also says that the location has shown itself to be very resilient in the past during crises.

There are various reasons for this.

On the one hand, the industrial companies are not centrally located in cities such as Gießen or Marburg, but are distributed across the country.

On the other hand, even large, globally active companies such as Friedhelm Loh or the Schunk Group in Heuchelheim - despite their size - belong to owner-managed medium-sized companies.

“This medium-sized DNA is definitely a pound that we can use to proliferate,” says Ihle.

It creates a completely different responsibility for the employees and for the region.

Losses at the expense of the supplier industry

The future fund for the automotive industry, set up by the federal government, is intended to help SMEs facing an uncertain future with so-called transformation networks. The expert council set up there is to clarify how high the losses caused by the transition to electromobility are at the expense of the supplier industry and how the federal government can intervene to save as many companies as possible from bankruptcy. A total of around one billion euros is available to the fund. "The future fund for the automotive industry supplements the economic stimulus package and is intended to address the medium to long-term challenges facing the automotive industry in its transformation towards sustainable and digital mobility," says the Federal Ministry of Economics.

The application process is currently in progress. In addition, so-called transformation hubs are to be promoted, which deal with certain topics and value chains. The aim is to improve the transfer of knowledge, particularly to small and medium-sized companies. A total of 340 million euros are available from the overall future fund package for the regional transformation networks. There, all relevant local actors are to be brought together in order to develop regional transformation strategies.

Such a network is now also planned for Central Hesse. Initial talks should take place this week. Invitations include trade unions, employers' associations, universities, municipal shareholders with their economic development agencies, employment agencies, the State of Hesse and the Gießen-based Society for Technology Transfer Central Hesse (TransMit). The aim is to promote the exchange of experiences and the networking of the industry and to involve as many of the aforementioned actors from the region as possible.

Philipp Rabenau, technology transfer and innovation advisor at the IHK Gießen-Friedberg, paints a rather positive picture of the development.

“Many small and medium-sized companies have recognized the opportunities and developed new products,” he says.

In the chamber district, which in addition to Gießen also includes the Wetterau and Vogelsberg, there are very different medium-sized companies that supply accordingly at different points in the value chain.

Battery technology and charging infrastructure

The Chamber of Commerce and Industry Electromobility Central Hesse was founded eleven years ago.

Companies and research institutions belong to it.

According to Rabenau, the discussions contributed to clarifying the challenges of e-mobility, including alternative drives, to companies.

The focus is on topics such as battery technology and charging infrastructure.

The major goal of regional management in the upcoming talks?

To get as many companies as possible to the table.

That could also happen gradually.

“If we start with five or six colleagues and keep the door open for others, then that's a good way to go,” believes Ihle.

“We would like to support more closely.” At the same time, he knows that the companies have to carry out the transformation themselves.