The Austrian automotive industry relies heavily on exports, producing €28.5 billion in goods annually, of which 85% are sold abroad. Of these exports, 65% go to Germany.
[Vienna, 02.12.2024] — The German car industry is losing significant market share to Chinese electric car manufacturers. German carmakers have not responded sufficiently to changing customer needs and have been too slow to develop new technologies. Volkswagen has now announced three plant closures in Germany by 2026. But what does this mean for the automotive industry in Austria? Scientists from the Complexity Science Hub (CSH), Supply Chain Intelligence Institute Austria (ASCII), and Logistikum of the University of Applied Sciences Upper Austria, are now investigating this question in a newly published research brief.
135 Companies and 6,300 Jobs Linked to VW
The researchers identified 135 Austrian companies with direct economic links to VW. To do this, they not only used high-resolution and detailed company data, but also a newly developed analysis method to automatically extract company relationships from an extensive archive of websites. "According to our calculations, 6,300 jobs are linked to business relationships with German VW plants. Most of these companies are located in the automotive cluster in Upper Austria and Styria," explains CSH researcher and ASCII director Peter Klimek. More optimistic and pessimistic estimates range from 3,600 to 10,900 jobs.
Component Suppliers Directly Affected
However, not all suppliers are affected to the same extent by the VW crisis. In the short term, the economic impact is likely to be felt most acutely by component manufacturers. Machine suppliers, on the other hand, are more likely to suffer long-term losses. For example, through canceled investments in new plants and the associated loss of growth opportunities.
The Tip of the Iceberg
"Ultimately, the current crisis at VW is just the tip of the iceberg. EU-wide structural reforms and a clear prioritization are needed to prevent far-reaching losses in value creation throughout the industry and to narrow the gap to China in the next technological leap," says Markus Gerschberger, Deputy Director of ASCII and Professor at the University of Applied Sciences Upper Austria. These include reducing energy costs, increasing automation, and boosting technological competitiveness.
About the Research Brief
The research brief "How Dependent is the Austrian Automotive Industry on Volkswagen?", by Mitja Devetak, Ladislav Bartuska, Jakob Haussteiner, Georg Heiler, Maximillian Hess, Klaus Friesenbichler, Markus Gerschberger, Hernán Picatto, and Peter Klimek, is available online.
About CSH
The Complexity Science Hub (CSH) is Europe’s research center for the study of complex systems. We derive meaning from data from a range of disciplines — economics, medicine, ecology, and the social sciences — as a basis for actionable solutions for a better world. Established in 2015, we have grown to over 70 researchers, driven by the increasing demand to gain a genuine understanding of the networks that underlie society, from healthcare to supply chains. Through our complexity science approaches linking physics, mathematics, and computational modeling with data and network science, we develop the capacity to address today’s and tomorrow’s challenges.
About The Supply Chain Intelligence Institute Austria (ASCII)
The research institute is dedicated to providing analyses to better address future challenges related to value networks, strategic interdependencies, and ensuring production and supply security. The aim is to provide decision-makers in politics, administration and industry with a solid basis for achieving the Austrian, and European goals of secure value creation and environmental neutrality. ASCII was founded by the Complexity Science Hub (CSH), the Logistikum of the University of Applied Sciences Upper Austria, the Logistics Network Association (VNL), and the Austrian Institute of Economic Research (WIFO), and is supported by the Federal Ministry for Labour and Economy and the Province of Upper Austria.
