The State of Bremen: Leader in Automobile Production The State of Bremen: Leader in Automobile Production | 1 Bremen: At the Center of Europe – Connected to the Entire World , , , 53° 5 N, 8° 48 E – Bremen s geographic position is well-known to every ship’s captain. Together with Bremerhaven, some 40 miles upriver, the city forms the Federal State of Bremen. Thanks to its location at the lower course of the river Weser not far from the North Sea, Bremen has been one of the most important port and trading cities in Europe from the middle ages to the present day. However, Bremen has much more to offer. Bremerhaven Bremen Introduction The automotive sector is one of the most important industries in Germany and plays a key role in growth, employment and innovation. In recent years the state of Bremen has developed into an automotive center of excellence with a unique profile. Bremen is a car city – forward-looking, and with history, with heart and with mind, spanning the region and the world. Bremen’s extensive automotive expertise comes from many directions and sources and an extraordinary combination of production and logistics, trade and transportation, research and development has emerged right here. The linchpin is the Bremen Mercedes-Benz plant of Daimler AG, which produces over 300,000 cars per year and employs more people than any other company in the city. The Bremen plant is the lead plant for world-wide production of the C Class, the best-selling Mercedes model. A good number of other internationally renowned and leading automotive technology suppliers are located here as well – Hella, Lear, Johnson Controls, and ZF Services among them. In addition, many automotive equipment and service providers as well as workshops have established a presence in Bremen. Our sister-city Bremerhaven is home to one of the largest car ports in the world and the continental European leader in automotive logistics – a tailor-made industrial area for the automotive sector. Research and development are excellently represented here. Bremen is also a model region for electric mobility. And finally, the Hanseatic city is the birthplace of the cult automobile Borgward, first produced in 1906. In fact this center of excellence can hardly be grasped in its entirety by virtue of the many overlapping and intersecting fields of endeavor pursued. Because of close links with other industrial sectors, these economic activities are a very important pillar of industrial development along the river Weser. The importance of the automotive branch is also reflected in the fact that associations, institutions and companies in the Bremen-Oldenburg region here in northwest Germany have formed their own network. In response to increasing globalization, an increasing demand for skilled workers and high requirements for innovation, the network is growing – with Bremen as a regional center. The automotive knowhow that is gathered here is one of the great strengths of our location. The State of Bremen: Leader in Automobile Production | 3 Automobile Production The Mercedes-Benz Plant, Bremen Formerly Borgward, today Mercedes. These two significant German car brands have been intimately associated with Bremen for decades. The Hanseatic city has gasoline in her blood: Where once Carl Borgward built his legendary cars, today Daimler mounts a star on their product and sets the standard for forward-looking automobile production. Since 1978, more than six million Mercedes Benz passenger cars have been produced in Bremen. Currently (2013) there are eight models: the C-Class sedan, station wagon and coupe, the E-Class coupe and convertible, the GLK (SUV) and the two roadsters (SLK and SL). Regardless of model or equipment, vehicles can be run flexibly in any order down the assembly line – and built exactly to order. The market research firm JD Power and Associates gave its 2011 award for Best Automobile Production Plant in Europe to the Bremen plant, based on its production quality. With more than 12,800 employees, the SebaldsbrückBremen facility is the largest private employer in the region and covers more than 1.5 million square meters (about 370 acres). Through 2014, Daimler AG is investing about one billion euros in the facility since the Bremen plant has a new and prominent role in the world-wide Mercedes production network: Bremen is the designated Center of Excellence for the new generation C Class and manages and directs production of this high-volume line in three plants abroad – Tuscaloosa (USA), Beijing (China) and East London (South Africa). 2014 Bremen to be designated the International Center of Excellence for the C Class 2013 The 1 millionth roadster from Bremen is completed 2012 The 1 millionth C Class is completed 2007 The first of the new C Class rolls off the line 1978 Mercedes cars first production in Bremen 1971 Daimler Benz takes over the Borgward plant 1938 The Carl F.W. Borgward Automobile and Motor Works opens The State of Bremen: Leader in Automobile Production | 4 The State of Bremen: Leader in Automobile Production | 5 Automotive Suppliers Innovation with Teamwork Suppliers are essential players in the automotive industry. Their flexibility, creativity and innovative powers are a decisive factor in a manufacturer’s success. More and more services in production and development are provided by suppliers. In-house production depth and the degree of added value have changed significantly in recent years. Automotive suppliers now account for around three-quarters of the value of an average car. In addition, more and more logistics companies are assuming responsibility for coordinating system and component deliveries to optimize production ( just-in-time and just-in-sequence). In Bremen there are a number of highly productive and technologically outstanding suppliers. One is Hella Car Components GmbH (Hella Fahrzeugkomponentenbau GmbH – HFK). The Bremen location is the lead plant for sensors, actuators and headlamp cleaning systems for the entire Hella Group, which ranks among the top 50 automotive suppliers globally and among the 100 largest industrial companies in Germany. Hella, as a global center of excellence for sensors, plays a central role in the international activities of the Hella Group. The Bremen plant, with 600 employees, received the Automotive Lean Production Award in 2012 for its exemplary lean manufacturing. The Lear Corporation, a leading global supplier for interior automobile components and power management systems, also has a Bremen facility. At the Bremen Lear plant, the 650 employees complete seat systems for Mercedes models and produce them so well that they were named 2010 Plant of the Year in a prestigious benchmark competition. Lear, the first and oldest just-in-time plant for automotive seat production in Germany, won the award “Global Excellence in Operations“ for supply chain integration and use of materials. The third in this group of suppliers is the Brose Group, operating worldwide from its headquarters in Coburg. Brose, a supplier of mechatronic systems and electric motors for bodies and interiors, built a production facility for electric window systems in Bremen in 2013. Add the Kuka Group, a leading global provider of engineering services and automated manufacturing solutions, with a site in Bremen. Kuka Systems GmbH develops and builds production facilities for axle and transmission assembly as well as for engine and cylinder head assembly. The drive train and suspension technology specialist ZF Services operates a centralized logistics center in Bremen with 235 employees serving over 1,200 customers worldwide. The automated high-bay warehouse holds approximately 17,000 pallet spaces in eight lanes. The number of ZF and Lemförder Parts Components sent from Bremen all over the world will increase to around 19,000 in the coming years. In-depth logistics know-how is embodied in another company – Schedl Automotive GmbH. Schedl, a tire specialist and automotive service provider with plants in Germany, Belgium, the UK, Portugal, The Czech Republic and China, supplies premium auto manufacturers such as Daimler, VW and BMW. The Bremen Mercedes plant purchases their complete wheel assembly from this source. The State of Bremen: Leader in Automobile Production | 6 The State of Bremen: Leader in Automobile Production | 7 Automotive Logistics Handling, Transport, Production Supply Automobile Handling Automotive Logistics Production Logistics Cars, as far as the eye can see: At the Bremerhaven Car Terminal there’s storage and parking for approximately 120 000 cars, 45 000 of those covered spaces. With an area of almost one million square meters or 247 acres, the three harbors make up the largest auto transport hub in Europe – with sophisticated logistics, excellent transport links and comprehensive service. But – loading and unloading are not the only activities at the Car Terminal. At the BLG Logistics Group Technical Center, Europe’s largest auto workshop, nearly 500,000 export/ import vehicles are inspected, modified or upgraded every year. For example, sunroofs, navigation systems, consumer electronics or leather seats may be installed. With globalization and the interwoven production networks of the German automotive industry, production logistics has become increasingly important. Parts and components of a vehicle often come from different continents and are delivered by the suppliers only when needed ( justin-time or just-in-sequence) directly to the assembly line, often in synch with production processes. This requires highly efficient interfaces between external logistics and factory production, such as that provided by the logistics Clearly, Bremen ports are one of the greatest assets of the German automotive industry, and through the ports the industry leaps from one export success to the next. Fifteen berths are available for car carriers along the five-kilometer quay. Nowhere else in Europe are more vehicles handled – in 2013 alone, 2.2 million. And in global comparisons, Bremerhaven plays a leading role, too. Bremerhaven is an automotive harbor, independent and export-oriented. From here, European manufacturers ship their cars to the U.S., East Asia and the Middle East. In addition, vehicles are imported from Southeast Asia production sites (Japan, Korea) and German manufacturing overseas (USA). Another aspect: Bremen‘s ports are a logistics hub for the entire automotive industry. Parts and kits are sent from Bremerhaven to assembly sites around the world (vehicleparts logistics). In addition to the BLG Logistics Group, the leading automotive logistics company in Europe, a dozen other companies in this sector are active – BWG Reimer, Ipsen Logistics, PWL, Stute and Weserport. With their terminal and transportation network, BLG offers the automotive industry a comprehensive, cross-border supply chain from factory to dealer; in 2012 they handled more than seven million vehicles. Their network includes 26 car terminals on coasts and inland waterways; in Europe, BLG routinely serves more than 7,000 auto dealers with 530 special transporters. In addition, the company has more than 1,000 of its own railway cars for automobile transport as well as seven river barges. center of DB Schenker in Bremen and PCC (Plant Consolidation Center Bremen), operated by Lorel GmbH from the Hansalinie Industrial Park. On approximately 57,000 square meters, Schenker bundles assembly units and components from about 60 suppliers for the nearby Mercedes-Benz plant. Around 280 people receive more than 100 truckloads of shipments daily from suppliers in Germany and Europe and provide intermediate storage for steering wheels, axles, struts and other components. When the parts are required, the desired modules are precisely assembled and shipped in order of assembly. Since 2007, Schenker has increased its plant area almost sixfold. At the PCC for Daimler AG, in an area of 50,000 square meters, production-related parts – headlights, car door mirrors, floor mats, door handles, pedal systems, steering wheels, trims, and moldings – from more than 200 different suppliers are stored and selected. Lorel has about 220 employees in the PCC center where over 230 delivery trucks are processed every day. The State of Bremen: Leader in Automobile Production | 8 The State of Bremen: Leader in Automobile Production | 9 Automotive Service Area Automotive Research Hansalinie Industrial Park Electromobile Model Region 53° 1’ 59’’ N, 8° 53’ 1’’ E – the geographic coordinates for one of the newest and most dynamic commercial areas in Bremen: The Hansalinie Industrial Park, located in the southeast of the Hanseatic city, is heavily oriented toward the automobile. With its own exit from the A1 Autobahn and within easy reach of all major modes of transport (road, rail, water, air), it is strategically located and is tied to all the larger traffic centers in all of Germany. Bremen is a center of scientific excellence in northwest Germany, and that includes automotive research. Situated near our local universities (University of Bremen, Jacobs University Bremen, University of Applied Sciences Bremen), internationally recognized research institutes pioneer work on technological and process projects. One scientific focus is environmental impact. Companies with a primary interest in the automotive industry have settled here. And for good reason: MercedesBenz is only a few kilometers away, allowing synchronized deliveries for production. Systems or components can be delivered directly to the factory just-in-time or just-insequence. The industrial park has, among other things, a complete Mercedes-Benz body production line. There is still development potential in the area, especially for companies associated with the automotive industry. Total size 155 hectares (380 acres) (12.2 hectares or 30 acres available for construction; 50 hectares or 124 acres under development) Companies 75 (3,000 employees) Infrastructure Hotels, restaurants, vehicle service area, local public transport link, rail siding Roads Direct exit/entrance Autobahn (A1) A27 intersection – 6 km A28 intersection – 30 km City Airport Bremen – 5 km Internal Port / Hemelingen Port – 2 km Central Train Station – 7 km This highly specialized research focuses on developing materials solutions and joining technologies, metalworking, high-performance composite materials and innovative welding processes as well as production systems and logistics networks. A major theme is systems technology and construction with new, lightweight and composite materials. ECOmat -The Center for Eco-efficient Materials & Technologies – was established specifically for this purpose. Considerable attention is being devoted to electric mobility. Since 2009 the Bremen-Oldenburg area has been one of eight model regions in Germany working on the development of future mobility concepts; here, mobility in rural areas is the focus. The project coordinators are the German Research Center for Artificial Intelligence (DFKI) and the Fraunhofer Institute for Manufacturing Technology and Applied Materials Research (IFAM). In our model region, a fleet of electric vehicles and charging stations are being tested. An intelligent e-car of the future is being developed in the EO Smart connecting car. Experts are working on intelligent networked mobility concepts involving all modes of transport including public transport. The northwest has a good chance to establish itself not only in electric mobility but as a model region for intelligent mobility. Scientific Institutes BIAS Bremen Institute of Applied Beam Technology GmbH BIBA Bremen Institute for Production and Logistics GmbH DFKI German Research Center for Artificial intelligence FIBRE Fiber Institute Bremen IFAM Fraunhofer Institute for Manufacturing Technology and Advanced Materials Research IWT Institute of Materials Engineering Foundation The State of Bremen: Leader in Automobile Production | 10 The State of Bremen: Leader in Automobile Production | 11 Automotive West Association Industry Platform Bremen as an automotive center is closely bound to the northwest region and the metropolitan area of BremenOldenburg. With Mercedes-Benz production in Bremen and Volkswagen in Emden, northwest Germany has two strong players in the industry that provide employment and revenue. Approximately 45,000 people work in the automotive industry in the northwest. The presence of roughly 400 suppliers underscores the critical role of the automotive industry in the Bremen-Oldenburg metropolitan area. Almost everything needed for the construction of motor vehicles is produced close to the front doors of these two major manufacturing plants. The ports of Bremerhaven and Emden in turn import and export a significant number of the German cars. Another focal point of competence is automotive logistics. In order to market the region as an automotive center of excellence with national impact, to promote economic relations, and to create a common communication platform, the Chambers of Industry and Commerce in Bremen and Oldenburg, along with the northwest German automotive industry, launched the Network Automotive West Association in September 2007. In this organization, manufac- turers and suppliers, service providers and researchers can network with ease. The association currently has 78 members, including the Mercedes-Benz Plant Bremen, Hella Vehicle Components GmbH, BLG Logistics Group and many other well-known companies. Automotive Northwest supports the exchange of experience and information between its members and other stakeholders with exhibits, workshops and cross-industry transfer of knowledge. Important concerns include attracting skilled workers and managers and the creation of partnerships. Automotive Northwest is funded by the Bremen-Oldenburg metropolitan area in northwest Germany (Bremen and Lower Saxony) as well as with funds from the European Regional Development Fund (ERDF). The State of Bremen: Leader in Automobile Production | 12 IMPRINT Published by: WFB Wirtschaftsförderung Bremen GmbH Kontorhaus am Markt Langenstraße 2–4 (entrance at Stintbrücke 1) D-28195 Bremen Outlook T +49 (0) 421.9600-10 F +49 (0) 421.9600-810 mail@wfb-bremen.de www.bremen-invest.com Bremeninvest is a brand of WFB Wirtschaftsförderung Bremen GmbH The automotive industry is and will remain one of the most important sectors of the economy. In 2012 German car manufacturers produced approximately 5.4 million cars in country, and 7.7 million new cars abroad. Their production networks are global and interconnected. Because of Mercedes, Bremen is home to one of the most prominent automobile brands in the world. Daimler has reconfigured its production program in view of the changing market. The Bremen plant is heading global production of the C Class in four factories: in Asia, Africa, North America and Germany. Bremen is the global hub of the Mercedes C Class world. This will in turn influence the dynamic supplier industry here, which has grown steadily in recent years and expects good growth in the coming years. Eyes are focused now on the emerging markets in the BRIC countries – Brazil, Russia, India and China. Consequently, Bremerhaven has become increasingly strong as an export harbor while car imports have gradually fallen. Asian manufacturers have set up production in eastern Europe and supply west European markets from there using the BLG transport network. BLG is already present in large parts of eastern Europe with car terminals and transportation services. And China is high on the agenda, too. BLG wants to build technology centers for automobiles at Chinese ports and is responsible for auto parts logistics for the Mercedes passenger car plant in Beijing. In the future, Asian vehicles will be transported to the west from the Pacific ports in Vladivostok on the Trans-Siberian railway. As a model region for electric mobility, Bremen is also focused on the development of alternative drive systems as well as lightweight materials since lighter vehicles consume less energy and thereby conserve resources. Design: WFB & b.sticht, Bremen Text: Dr. Christine Backhaus, Press Spokesperson Photos: Mercedes-Benz, BLG, WFB, Ingo Wagner, Terra Air Services, Jens Lehmkühler, LEAR, “K” Line, iStockphoto, fotolia Producer: Christina Lolk, WFB Printer: BerlinDruck, Achim This brochure does not claim to be exhaustive, but reflects the diversity of the automotive industry in Bremen. State of Information: August 2013 WFB Wirtschaftsförderung Bremen GmbH Kontorhaus am Markt Langenstraße 2–4 (entrance at Stintbrücke 1) D-28195 Bremen T +49 (0) 421.9600-10 F +49 (0) 421.9600-810 www.bremen-invest.com Bremeninvest is a brand of WFB Wirtschaftsförderung Bremen GmbH