Bräunig: German OEMs and suppliers show strong commitment in US

Berlin/Detroit (ots) - VDA Managing Director Bräunig at North
American International Auto Show (NAIAS) - US market is essential to
German auto industry - Important location for US production and
exports from US. German passenger car brands took almost 8 percent of
US market in 2018 - Companies have 118,000 employees at US plants -
With stable trade conditions sales by German automotive industry
could exceed 17 million in 2019.

"The United States, along with China and Europe, is among the most
important sales regions for the German automotive industry. In 2018
the German OEMs sold 1.34 million light vehicles there, equaling the
good result from the previous year and mirroring the trend on the
overall market. Customers in the US bought a total of 17.2 million
light vehicles. This took the market share going to German brands of
passenger cars to nearly 8 percent," said Klaus Bräunig, Managing
Director of the German Association of the Automotive Industry (VDA),
at the North American International Auto Show in Detroit.

The German group brands sold around 16.5 million new cars
worldwide last year. "With stable trade conditions, in 2019 we could
break through the 17 million mark for the first time," Bräunig
explained.

German automotive industry creates jobs in the US

For the German auto industry the US is important not only as a
sales market, but also as a production location. This strong
commitment benefits the US economy and the employees. Bräunig said,
"German manufacturers and suppliers are major employers in the US. In
2018 around 118,000 people were directly employed at their plants,
more than 80,000 of them at our suppliers. Our US workforce grew by
about 8,000 compared with the previous year." In addition to the four
large plants belonging to German vehicle makers, our suppliers also
operate almost 330 production facilities. "The companies provide jobs
and create value in hundreds of municipalities in the US. The German
automotive industry therefore makes a key contribution to American
prosperity," Bräunig stated.

German brands have increased production and exports

German manufacturers have increased their production in the US
significantly in recent years. The US is the German OEMs' third
largest foreign location. While total US production has doubled since
2009, German OEMs have almost quadrupled production at their US
facilities. In 2018 approximately 750,000 German-branded light
vehicles were manufactured in the US. US-made vehicles are not only
destined for the domestic market. Bräunig explained, "The US is an
important export hub. Our OEMs exported 56 percent of their US-made
vehicles to destinations like China or Europe. Forty-four percent
remained in the US."

While the German firms produced around 750,000 vehicles in their
US plants, only 470,000 new vehicles were exported to the US from
Germany.

German US production locations need free and fair trade

"Recent developments once again proved that the automotive
industry and the jobs it provides depend heavily on free and fair
trade - in the US, in Germany and elsewhere. Additional tariffs and
local content measures to protect the industry have negative effects
both on the local economy and on competitiveness. This is why we are
deeply concerned about the direction that US trade policy has taken
since 2017. We should always keep in mind that together the EU and
the US account for 50 percent of world trade. We could shape global
trade as partners, not opponents," Bräunig pointed out.

For this reason the German automotive industry supports a
transatlantic agreement on industrial goods in conformity with WTO
rules, which should include the automotive sector. Bräunig stated,
"Removing import tariffs and reaching the greatest possible
understanding on regulations would be the right way to go. That will
benefit both sides."

Bräunig also mentioned the trade conflict between the US and
China: "The situation has a major impact on our companies in the US.
In 2017 German auto makers exported around 150,000 light vehicles
from their US production to China. One in five of all cars that we
built in the US went to China. Owing to the trade conflicts, German
auto makers exported only 95,000 light vehicles from their US
production to China in 2018. We therefore hope that the two countries
will be able to resolve their dispute. China's temporary reductions
of import duties are an encouraging sign, as are last week's talks
between Chinese and American officials. But the situation still
remains precarious, and another escalation might be just around the
corner."

German exhibitors in Detroit

This year some major players in the German automotive industry are
in Detroit.

Volkswagen is presenting the new Passat for North America. The
model has been produced in Chattanooga, Tennessee, since 2011 and has
been given a thorough make-over so it now offers several new driver
assistance systems. Volkswagen regards the NAIAS in Detroit, with its
120-year history, as one of the most important auto and truck shows
in the world.

Mahle is concentrating at the NAIAS on the efficient urban
mobility of tomorrow. The company is demonstrating a mobility concept
developed to satisfy the needs of city-dwellers. The 48-volt "MEET"
vehicle concept has an efficient and dynamic drive unit with
integrated power electronics, and clever thermal management that uses
the energy in the vehicle efficiently to provide benefits such as
increased cruising range.

ZF's presentation NAIAS goes under the slogan "Shaping Next
Generation Mobility." The technology group is displaying system
solutions that make mobility even cleaner, safer and more accessible.
They include sensors and IT for all levels of automated driving and
new, innovative occupant-protection concepts for autonomous vehicles.
ZF is also showcasing advanced steering, braking and chassis
technology, and it has a focus on electric mobility with fully
electric propulsion systems and integrated hybrid solutions.

Bosch will be present at NAIAS, too. Future mobility with
connected cars, solutions for autonomous driving and electric
mobility are the company's most important topics at the Auto Show.

Schaeffler also presents solutions for future mobility at NAIAS.
Besides innovative technologies for e-mobility the company brings a
new clutch system for mild hybrid vehicles (MHT) to Detroit.
Schaeffler also showcases "space drive", a technological milestone
for autonomous driving. Control is no longer performed by mechanical
means but within nano seconds through electrical impulses transmitted
via cables and wires.

Webasto has been committed to the North American region as a
supplier for sunroofs and convertible roofs for over 25 years. It
recently acquired a California-based company specializing in Charging
Technology. The next milestone will be the new regional headquarters
and R&D center in Michigan opening next year.

Bräunig said, "The German exhibitors at the North American
International Auto Show in Detroit are emphasizing their intensive
market presence on what is for OEMs and suppliers - alongside China
and Europe - the most important auto market and location. The Detroit
Auto Show is a key trade fair for the US as an automotive nation.
That is demonstrated by consistently high visitor numbers. We are
therefore following the new orientation of the NAIAS with the
greatest interest."

Contact:
Eckehart Rotter VDA - Press Department
Tel.: +49 30 897842-120
E-mail: rotter@vda.de 1

Original-Content von: VDA Verband der Automobilindustrie e.V., übermittelt durch news aktuell