US automotive giants invest in Sweden
Johnson Controls, IAC, General Motors expand in Sweden. 750 new jobs created thanks to new investments.
The Swedish automotive industry is booming thanks to new investments from Johnson Controls, IAC, and General Motors SAAB. The expansion of the three vehicle firms will help create some 1,000 new jobs across Sweden.
Johnson Controls Sweden AB, a global developer of vehicle systems, is expanding its investment in Sweden. Its new expansion investment is estimated to be in the region of SEK80+ million and will include 50 new jobs at the start of the investment and up to a total of 150 new jobs after two years. The firm has been present in Sweden for about 10 years, and develops and manufactures interior systems, seats, and electronics for Swedish automotive OEMs.
Next, one of the biggest investments in Swedish automotive components production yet has been made by IAC (International Automotive Components Group), one of the world’s largest automotive interiors suppliers.
IAC is investing SEK 800 million in a new Swedish car component factory in Torslanda outside Gothenburg. The firm has acquired 40,000m2 of land (with an option to buy a further 10,000m2) to build a state-of-the-art 20,000m2 production site. The plant will create 700 new jobs, 350 of which will commence this in 2008.
“This is one of the biggest investments in Swedish components production for the automotive industry,” said Marcus Nyman, CEO of IAC Sweden.
“We will create a new world-class production system in order to meet the heavy global competition, not to mention from the factories in low-cost countries. This investment considerably strengthens the automotive cluster in the Western Sweden,” Nyman added.
Having a presence in Gothenburg means higher volumes, collected competence and closeness to customers such as Volvo cars and Volvo trucks. IAC’s components will be delivered to the assembly plants of Volvo cars and Volvo trucks at Hisingen, as well as SAAB’s factory in Trollhättan and Scania’s truck factory in Södertälje, south of Stockholm. The Swedish operation is one of IAC’s largest, representing half of the firm’s business in Europe. IAC ranks among the world’s top 35 global suppliers based on of original equipment sales in 2006, and generates SEK6 billion in Sweden alone.
Automotive giant General Motors SAAB is also expanding its operations in Trollhättan. GM SAAB has announced it will make around 100,000 cars from its small vehicle platform in Trollhättan over the next two years, equating an investment of around SEK7-10 billion. The investment will safeguard some 1,000 jobs in the region.
This investment implicate that General Motors continues to develop Trollhättan to one of its most important R&D and manufacturing sites. This investment will add substantially to the automotive cluster with the aim of continuing to build knowledge in the automotive field. The investment will have a great impact on Swedish suppliers of equipment and engineering services.
The manufacturing plant in Trollhättan will become one of the key plants in Europe with capability to manufacture small General Motors cars. The investment is set to create well-paid jobs that attract skilled trade labour and individuals with advanced engineering capabilities.
It will also generate additional engineering support service revenues for companies in the region and specifically in the community. Last but not least, the current investment is of special importance for Sweden since this type of operation also includes R&D, and will thus strengthen the Swedish automotive industry in both short and long term perspectives.
For further information, please contact:
Andrew Lord
Brand financial manager, Johnson Controls Sweden AB
Tel: +46 (0)31 764 38 29
Email: andrew.lord@jci.com
Marcus Nyman
CEO, IAC Sweden
Mobile: +46 (0)70 674 7010
Email: marcus.nyman@iacgroup.com
Jan-Åke Jonsson
Managing director, SAAB Automobile
Tel: +46 (0)520 850 00
Email: jan-ake.jonsson@se.saab.com