Heft36 1 - SFB 580 - Friedrich-Schiller-Universität Jena

AUTOMOTIVE REFERENCES LITERATUR COMPANIES GO EAST -
GERMANY AND AUSTRIA
Regarding its niche competence, the Austrian
company has never had the assurance to be
and stay market leader, although the company
offers a special segment: the 4-wheel-drive.
However, different from cabriolet production,
this special engine technology could be
integrated in the production lines of the OEM.
They have nearly always been competitors
for this production, so that Magna Steyr was
in danger that OEM would undertake this
production on their own. Taking a look at
foreign investments, the Austrians “stayed at
home” as far as production is concerned. The
case study shows a surprising strategy: High
quality services are transferred or established
abroad while all production tasks remain in
Austria. At first glance, this strategy may seem
unrealistic and implausible. But reality shows
that thoughts about relocating high quality
services accompany foreign investments
considerations – regardless of whether
production will remain at the home-site
(Rudas, Witzani & Fritzer-Posch 2003).
Asked if they invest in Central and Eastern
Europe, the interview partners express two
statements. First, they affirm that the niche
and low volume production of premium cars
can only be done adequately with a skilled
labour force and trusted workmen by using
engineer support and experiences located
close to the production sites. In the eyes of
the interview partners, this is only the case
in Austria. Second, an investment
in Central and Eastern Europe for
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financial reasons is not needed, as
supplier parts can easily be purchased
from neighbouring countries (just
a few kilometres from the headquarter in
Graz). Beyond that, the company’s executives
refer to the next migration trend far more east
(because of rising labour cost, difficulties to
recruit skilled employees…).
Although it might be judged as “accompanying
measures” that could be neglected, the institution
of the “Automotive Cluster Steiermark” should be
named. The Bundesland Steiermark initiated
a relatively large-scale and financially wellsupported
institution that provides collective
goods specifically to the automotive industry.
Leading companies are AVL List (an engine
company) and Magna Steyr. Besides offers to
meet staff from other companies in order to
build business-networks, the effort to develop
cluster-specific infrastructure, the cluster acts
as a lobby for the Austrian automobile industry.
The initiative finds acceptance, which is not
self-evident, because the companies have to
pay to be members of the cluster. Therefore,
they staff the decision-making body and are
involved in decisions about new initiatives such
as the constitution of the automotive-specific
cooperation of all Steyrian universities and
research institutes to support the companies.
Regarding all these aspects, one must
emphasize that – compared to other European
contract manufacturers - Magna Steyr proceeds
and decides in a different role. As an affiliate
there are opportunities to compensate. As an
affiliate of a mega-supplier being part of a
large corporation, the company can benefit
from supplier-relations, utilize the corporate
structure and take advantage of corporate
decisions. Furthermore, interviews, reports and
other sources basically rely on information from
the “Magna era”. On closer examination of the
company’s history, it becomes apparent that this
contract manufacturer rather seriously starts to
play in the concert of the European contract
manufacturer since it became part of the Magna