Europe: the world's largest automotive center

Europe, despite fierce competition with the US and Asian countries, continues to hold its position as the largest engineering region specialising in the production of high-tech equipment and transport. The EU is confidently positioned as the world's automotive centre, capable of modelling a map of future technological development and developing technologies in demand.

The main potential of the automotive sector is supported by the «technological quartet» countries - Germany, Great Britain, France and Italy. These countries have a unique production and technical base, in some cases combining more than 100 years of experience in research, testing in real conditions and practical application of automotive components and units.

The key reason for such a successful development of the centre lies in the developed market relations, a large number of manufacturers whose activities are deeply integrated and closely interconnected with other enterprises of the industry. This is characteristic not only for mechanical engineering, which is closely linked to European capabilities and metalworking technologies, but also for related, seemingly remote areas of industry.

Related industries

Ferrous and non-ferrous metallurgy

The industry is focused on the development of new alloys with sought-after characteristics for structural and body all-metal parts. The main objective of the co-operation is to obtain light alloys with anti-corrosion and anti-friction properties for the production of parts and more spare parts offered by third-party manufacturers.

Metalworking

The success of the European automotive industry since the beginning of history has been linked to advanced metalworking technologies. The industry is characterised by such manufacturers:

• Gleason-Pfauter Maschinenfabrik GmbH - holds a leading position in hobbing;
• The JUNKER Group is the world's leading manufacturer of precision grinding machines;
• Gildemeister is one of the leaders in the production of high-precision machine tools for metalworking.

Chemical industry

Provides the automotive industry with high-tech synthetic plastics, polymers, composites, replacing in some cases metal alloys. Special attention is paid to carbon fibre reinforced plastics - carbon. The body of BMW i3 electric car is made of CFRP - Carbon Fibre Reinforced Plastic. The European company Solvay S.A. (Belgium) is a leader in this area.

Petrochemical industry

This area of European industry provides the industry with synthetic lubricants, advanced automotive chemicals, fuels and finishing materials. Leading positions are:

• BASF and Johnson Matthey (automotive catalysts);
• LyondellBasell Industries N.V. (fuel);
• Akzo Nobel N.V. (automotive coatings);
• INEOS Holding Group (biodiesel and polymers);
• CHEM-TREND GMBH (spray solutions for tyres).

Oil and gas industry

The oil and gas industry is working on the development of new types of synthetic and biofuels. Synthetic petrol technologies based on synthesis gas developed by German scientists Franz Fischer and Hans Tropsch are being developed. Audi AG is a leader in the production of e-gas, e-benzin from renewable sources, and the company has opened a research centre on its premises.

Electronics and robotics

Electronics and robotics used for the development of on-board vehicle systems, based on the knowledge of highly qualified personnel trained by universities in Germany, Great Britain and France. The Braunschweig Technical University, Technical University of Munich, and Halbronn Graduate School are considered to be centres of education and research. German universities co-operate closely with technical universities in Ukraine.

Industrial design

The intensity of production implementation of industrial design samples in the EU is comparable to the USA and averages 30% of the total volume. The adoption rate for 2011 is: USA - 0.28, Europe - 0.28, Japan - 0.35, China - 0.17. This area in Europe generates over $15bn of annual gross product, with investment in prototyping accounting for up to 10% of all R&D. In 2011, investment in this area totalled $44 billion in Europe.

Energy sector

The energy sector helps technology transfer in the field of creating efficient batteries used for hybrid and e-mobiles. In this area, companies in Eastern Europe - the Czech Republic and Macedonia - are at the forefront, producing batteries with start-stop technology (AGM battery made of adsorbing glass fibre) for mass-produced micro-hybrid cars from Mercedes, Volvo, Audi, BMW and Volkswagen. The technology used combines an internal combustion engine with an electric drive system, providing 12-30% fuel economy and reducing CO2 emissions.

The high potential of European industrial enterprises working as a single machine-building conglomerate allows us to speak about the preservation of the leading positions of the European centre in the automotive industry market in the long term.

The assets of the largest producers are concentrated in Europe

European automotive assets are represented by the production facilities of German corporations Volkswagen Group, Daimler AG, BMW AG, Porsche AG, the European division of Ford Motor and General Motors, the French assets of PSA Peugeot Citroën and Renault Group, the Dutch company with Italian ownership Fiat Chrysler Automobiles (FCA Italy), and the Swedish corporation Volvo Group.

Italian companies Bugatti Automobiles S.A.S., Ferrari S.p.A., Lamborghini, Maserati and German Porsche AG, British companies Bentley Motors and Aston Martin make a significant contribution to the development of production, producing luxury cars. Such manufacturers specialise in concept designs not normally used in mass-market cars and their implementation. Heavy truck manufacturers DAF (Netherlands, as part of PACCAR Inc.), MAN (Germany), Scania (Sweden), Iveco (Italy) are influential.

The main strategy for increasing the competitiveness of automotive concerns consists of strategic partnerships with industry enterprises, both core and related, and strategic mergers and acquisitions. Today, the largest European holders of automotive assets are:

• Volkswagen Group - Volkswagen, Audi (Auto Union, since 1958 part of Daimler-Benz), Škoda, Seat, partly Porsche AG;
• Daimler AG: Mercedes-Benz Cars Group - passenger cars, including Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, Smart; Daimler Trucks Group - heavy-duty vehicles, Mercedes-Benz, Mitsubishi Fuso Truck and Bus Corporation; Mercedes-Benz Vans Group - light-duty vehicles; Daimler Buses Group - buses, partly Tesla Motors, KAMAZ and others;
• BMW Group: BMW, BMW Motorrad, Mini and Rolls-Royce;
• PSA Peugeot Citroën - Peugeot, Citroën, Opel, Hindustan Motors, Vauxhall and DS Automobiles.
• FCA Italy - Chrysler, Alfa Romeo, Dodge, Fiat, Jeep, Lancia, Abarth, Ram Trucks, Mopar and Holding also includes Maserati, Comau, Magneti Marelli and Teksid. Ferrari shares are distributed to the ultimate owners.

Developed automotive manufacturing centres

In Europe, automotive production facilities are evenly distributed across the countries with the exception of the UK and some areas of Germany, where there are several dedicated centres. In Germany, a major car assembly hub is organised by BMV in Dingolfing, Leipzig, Regensburg and Munich.

About a third of the assets of British car manufacturing companies are controlled by American companies, which extended their influence in the British Isles after the Second World War. The West Midlands, a major automotive manufacturing area centred on Birmingham, and South East England, with automotive manufacturing centres in Daneham, Luton and Oxford, stand out.

European Production Co-operation - as a prerequisite for the success of the sector

How engineering centre Western Europe is deeply integrated with other industrial spheres, providing the corresponding needs in technological equipment. Close co-operative interaction between machine-building enterprises contributes to the rapid assimilation of technologies, their introduction into mass production and the improvement of the industrial base for the formation of the next round of development.

Machine tool industry

It is about high-precision machine-tool construction and the production of forging and pressing machines used for high-tech metalworking. This area played a decisive role in the emergence of the first automobiles, providing the necessary technological level for the production of bicycle bearings, washers, gears, and later body parts and platform elements. And it continues to influence the development of the automotive sector, ensuring the centre's leading position.

The body parts industry is heavily influenced by the ferrous and non-ferrous metal industry with centres in Germany, Britain, France, Luxembourg, Sweden and Poland. Manufacturing centres are characteristic of Southern Europe - Genoa, Toronto and Naples.

First car

The first mass-produced car was assembled by Karl Benz in 1886, based on the design of a bicycle that had appeared on the market in 1840. The inventor, whose name is included in the name of the world's most recognisable car brand Mercedes-Benz, modernised the wheeled vehicle by borrowing the basic elements of the metal structure and installed his own internal combustion engine.

 

Benz's self-propelled pram became the prototype of the modern car, fully retaining the design features of the bicycle platform and the tubular frame borrowed by the inventor, which is the basis of all modern cars. The four-wheeled car was created in 1893, Benz additionally patented the school wheel turning system, each wheel turning separately.

Peugeot was founded in 1888, a metalworking manufactory started by the Peugeot family in 1700. To this day, Peugeot still produces manual coffee grinders with a lifetime warranty on the steel mechanism. The company later specialised in spoke wheels and bicycles, and after meeting Gottlieb Daimler, began producing cars.

 

The car acquired the traditional all-metal body a few decades later. The first industrialist to install a metal body was André Citroën in 1928, after establishing industrial contacts with the American industrialist Edward Budd. Particularly important for the development of transport and high-tech manufacturing spare parts metalworking technology played a role.

The production of bicycles contributed to the emergence of a complete technical base for the automotive and aircraft industries. Many automotive companies started out as manufacturers of bicycles and self-propelled buggies. For example: Rover, Škoda, Opel, Morris Motor. In addition to the tubular frame, washers, bearings, and gears were borrowed from bicycles.

Aerospace and military-industrial complex

The automotive industry has been particularly influenced by military engineering, aviation and aerospace. The current leaders in this field are Germany, Great Britain and France. The world's first car manufacturer Panhard Defense, which was created for the production of cars, completely changed its sphere of activity and focused on the production of modern armoured military vehicles. Siemens and Volkswagen are considered modern leaders in the military sphere.

 

BMW, which started out as a developer of aircraft engines, has become a powerful technological conglomerate specialising in high-speed cars. There are two periods of development in the history of BMW. Even before World War II, the company had extensive production. For example, the BMW 801TJ star-shaped piston engines were fitted to Junkers Ju 388 photo-reconnaissance aircraft. Each had a power output of 1409 kW and 1890 hp.

In the post-war years, major production assets were lost, but today BMW once again has a stable market position. The headquarters is a full-fledged centre of the automotive industry. The company's main goals include the formation and standardisation of a new automotive platform.

 

Petrochemicals and metal processing

A significant contribution to the development of the European automotive industry is made by industrial petrochemicals, located in clusters on the Seine and Elbe coasts. The companies in this group work in co-operative cooperation with automotive corporations. Mutual integration of technologies helps to achieve the operation of vehicles with improved parameters, thus improving the quality of manufactured transport in the long term and the level of competitiveness among consumers.

Western Europe leads the world in the production of chemical products, including high-tech petrochemicals and lubricants. The development of the latest synthetic formulations has made it possible to significantly increase the service life of metal parts. Along with antifriction qualities of high-tech alloys, synthetic oils make it possible to reduce wear of structural elements of automotive equipment to a possible minimum.

This activity is closely related to non-ferrous metallurgy and the development of new antifriction, duralumin and other types of alloys with specific properties. Magnesium alloys characterised by high-temperature properties are leading among the offerings. Magnesium is 36% lighter than aluminium and 78% lighter than iron, they allow to perform high-quality casting of any complex structures. These products have high durability at operating temperatures up to 175 C.

In mass production, magnesium alloys are used for lightweight car discs with increased strength, chassis and body components. Titanium discs have improved technical characteristics, the strength of which is twice as high as that of alloy steels. Silicon-alloyed aluminium rims are highly valued in the automotive industry.

 

In recent years, automotive technology has expanded its technological assets through the use of the latest materials: lightweight alloys, composite materials, including carbon fibre reinforced plastics. Examples include the synthetic material CFRP - Carbon Fibre Reinforced Plastic, which is used to make the body of the BMW i3 electric car.

Reducing the weight of a hybrid vehicle reduces battery capacity. Carbon fibre is used to manufacture parts. This is the Transverse Composite Leaf Spring rear suspension for small cars.

Energy technologies

The manufacturers' production efforts are aimed at reviving the technological solutions developed in the first half of the 20th century, electric and gas hybrids. For the production of electric hybrids, European companies are in close production relationships with power equipment manufacturers, whose centres are located in Germany, the UK, the Netherlands and France. EU countries are leading the way in the development of on-board electronics.

Production of components and spare parts

The majority of automotive concerns use third-party components on assembly lines. The industry attracts and provides permanent orders to a wide range of manufacturers, ensuring the acquisition of added value and forming the gross product of the region. The following companies are worth mentioning among the manufacturers:

• INA is a leading manufacturer of bearings; the company owns the FAG brand, producing hubs, wheel bearings, ball joints, running gear and suspension parts, cooling system pumps. Parts under these brands are also supplied by Ruville, a parts packager;
• Bosch - Bosch spare parts are used 70% automotive corporations on assembly lines. The company also supplies high quality service equipment;
• Lemforder (ZF Friedrichshafen AG) - produces chassis parts, steering parts, silent blocks, auto parts are considered the best on the market. It has no less than 600 science-intensive patents. VW-Audi uses 100% of Lemforder parts on assembly lines. Regular customers of the company are Toyota, Mercedes-Benz, BMW, GM, Renault, PSA, DAF, Ford, Iveco, Scania;
• SWAG (Bilstein Group) is a leading manufacturer of suspension, chassis, steering and other spare parts. Parts are characterised by the highest possible quality standards;
• Elring - gaskets and rubber seals, oil seals and sealants, the company's sales activity covers more than 140 countries;
• Victor Reinz, a company after the merger of Victor (USA) and Reinz (Germany) is an advanced manufacturer of oil seals and gaskets;
• Sachs (ZF Friedrichshafen AG) is a leader in the production of shock absorbers and clutch components, produces support bearings. Sachs parts are installed on F1 sports cars (Ferrari, Sauber, Toyota), as well as on cars racing LeMans, WRC (Ford WRC);
• ContiTech Continental is a high-end rubber and plastic manufacturer;
• Hella - supplier of on-board electrics and lighting elements, etc.

Most parts and component manufacturers do their own research and offer solutions to car manufacturers.