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AUTOMOTIVE SWEDEN
NEWSLETTER
Swedish subcontractors gather strength for the IAA
Never before have so many Swedish subcontractors joined forces to market themselves in the German market. 26 Swedish companies are represented when the German IAA exhibition hall in Hanover opens on 22 september.
The initiator for the effort is the FKG (Scandinavian suppliers in the automotive industry) which together with its member companies has over 545 sq m at its disposal spread over three blocks.

Svenåke Berglie, Managing Director FKG, how is it that so many have come together this year in particular?
We had a joint exhibition stand of 420 m2 in 2008, and had a feeling that there could be slightly more interest this year. We booked 450 m2, but had to negotiate almost another 100 m2. We believe that many companies realize that there are large attractive customers abroad and that they are as competitive as their foreign competitors. As far as I know, this is the biggest effort that a Scandinavian supplier industry has ever made at a motor show.

What does this major venture for the automotive industry mean in Sweden?
Internationalization is one of the strongest trends in the automotive industry. Countries such as China, India, Brazil and Russia are emerging as the big future markets, with China already the biggest. Some products can be exported, but a local presence is also a must. That so many companies are investing in IAA demonstrates that they want to gain a stronger market position.

Is a turnaround in the industry in sight, or do you feel the need to become more international in order to survive?
The volumes are clearly on the rise, in particular in commercial vehicles. Structural changes in customers are continuing and are increasing demands for an international presence.

What is the most important strategy for Swedish subcontractors who want to succeed in Germany?
To develop German customers requires a local presence with at least marketing, sales and project management. The customers are large and all competitors of any size have a high level of local service. Production can be located elsewhere. A few years ago we took the initiative to start a local office in Germany to enable Scandinavian suppliers to start up operations in the country more easily and to do so in a flexible and cost effective manner. The company REC was inspired by this idea and now has contracts with six companies.

How important is the IAA exhibition?
As the world´s largest trade show for commercial vehicles it is an important meeting place. Everyone is there.

sep 15 2010
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