In Austria, 135 companies supply German VW factories, with 6,300 jobs directly dependent on VW orders. Most of these companies are located in the automotive cluster in Upper Austria and Styria.
This is evident from a current study by the Supply Chain Intelligence Institute Austria (ASCII), the Logistikum of the University of Applied Sciences of Upper Austria and the Complexity Science Hub (CSH).
The crisis at the German car manufacturer will therefore mainly have an impact on parts manufacturers in the short term, while machine suppliers are more likely to suffer losses in the long term. According to the study, the domestic automotive industry produces 28.5 billion euros worth of goods annually, of which 85 percent is exported. 65 percent of that goes to Germany.
“Ultimately, the current crisis at VW is just the tip of the iceberg. Structural reforms across the EU and a clear setting of priorities are needed to avoid far-reaching losses in value creation across the sector and to narrow the gap with China with the next technological leap,” said Markus Gerschberger, Deputy Director of ASCII.
These include reducing energy costs, increasing automation and promoting technological competitiveness, he cited in the study published Monday.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
