Automotive Austria Automotive Austria One Hundred Years of Official Austrian Vehicle Industry Representation Imprint Automotive Austria 1907–2007 Commemorative Volume in Celebration of One Hundred Years of Official Austrian Vehicle Industry Representation Publisher © 2007 Association of the Austrian Vehicle Industry Wiedner Hauptstraße 63, A-1045 Vienna, Austria T: +43 (0) 590 900-4801, F: +43 (0) 590 900-289 E: [email protected] I: http://wko.at/fahrzeuge All rights reserved. Authors: Prof. Dr. Alois Mosser, Dr. Gerhard Bruner Translation of the English edition: LanguageLink Sprachdienste GmbH, Wambachergasse 4, A-1130 Vienna, Austria, T: +43 1 804 34 30, I: www.languagelink.at Overall visual concept and cover: ylem unique advertising werbeagentur, Landstraßer Hauptstraße 75–77, A-1030 Vienna, Austria, T: +43 1 595 50 01, I: www.ylem.at Illustrations and photos: The picture credits can be found on page 84. The photos on pages 101 to 193 were provided by the individual member companies. The copyrights to these photos are held by the respective companies. Coordination: FEEI Management-Service GmbH, Mariahilfer Straße 37–39, A-1060 Vienna, Austria, T: +43 1 588 39-0 Production: Falter Verlagsgesellschaft m.b.H., Marc-Aurel-Straße 9, A-1010 Vienna, Austria, T: +43 1 536 60-0, I: www.falter.at Printed in the EU March 1, 2007 5 Contents Generaldirektor Mag. Max Mustermann Forewords 9 A Century of Safeguarding the Interests of Member Companies | Bruno Krainz 11 Lively International Demand for Automobile Products “Made in Austria” | Prof. Dr. Bernd Gottschalk 13 Austria – A Center of the Automotive Industry | Federal President Dr. Heinz Fischer 15 Key Industry for Austrian Transport Policy | Federal Minister Werner Faymann 17 The Vehicle Industry – An Austrian Success Story | Federal Minister Dr. Martin Bartenstein 19 A Century of Successfully Representing the Vehicle Industry | Dr. Christoph Leitl 21 The Vehicle Industry – One of Austria’s Most Important Industrial Sectors | Dr. Veit Sorger One Hundred Years of Official Austrian Vehicle Industry Representation Alois Mosser and Gerhard Bruner 27 Establishment and the Growth of the Industry 37 Interest Representation and the Industry Association during World War I 39 Interest Representation during the First Republic 39 Restructuring and Rebuilding 43 Activities during the Corporate State until Dissolution 47 Industry Representation during the Second Republic 47 Reorganization and Restructuring 54 Building a Viable Automobile Industry in Austria 71 Europe’s Impact 85 The Chairmen and Directors 86 The Secretary Generals 87 The Association Offices 89 The Authors Members 93 A Brief Portrait of the Association of the Austrian Vehicle Industry | Walter Linszbauer 97 List of Members Automotive Austria One Hundred Years of Official Austrian Vehicle Industry Representation Forewords Forewords 9 A Century of Safeguarding the Interests of Member Companies Bruno Krainz The fascination with mobility is probably as old as humankind itself. Is it any wonder that humans have sought to improve mobility since time immemorial? It is left to ingenious engineers, entrepreneurs in the truest sense of the word, to contribute with their inven- tions and innovations to achieving this age-old dream of mankind. Austria is one of the countries whose excellent educational system, both academic and vocational, creates su- perb conditions for allowing space for these developments and innovations. It should come as no surprise that the first gasoline-powered vehicle was created in Austria, the “Marcus- Wagen.” A whole new industry was about to take off. The businesspeople involved recognized early on that they would have to coordinate their activities. The vehicles had to be standardized to satisfy the fledgling traffic regulations. In their attempts to export, the companies had to make their way through a veritable jungle of trade barriers. The Association of the Austrian Vehicle Industry was formed at this time with the stated purpose of represent- ing the interests of the vehicle industry in all relevant areas. Over all these years of it doing so, requirements have naturally changed and become more complex. After World War II, Austria put the social partnership system in place, opening up the broad field of representation of employer interests, particularly in collective bargaining rounds. The vehicle industry had to start almost from scratch in the post-World War II era, just as many other industries did. Passenger vehicle business was quite limited, but the output of utility and two-wheel vehicles grew steadily. The automotive supplier sector also developed positively. Industry in general became increasingly globalized and the vehicles sector naturally also felt the effects of this change. Internationalization and division of labor required constant structural adaptation, causing old compa- nies to disappear and new ones to arise. Austria developed into a popular production location. Social tranquility, strike time measurable in seconds, and the partnership of its various social interest groups gave Austria a reputation among international companies of being a country one could trust. The social partnership system produced tangible successes. As representa- tives of their member companies and co-responsible for this success, the industrial associations remained true to their original purpose of safeguarding the interests of the companies. Automotive Austria One Hundred Years of Official Austrian Vehicle Industry Representation 10 These industrial associations are set up as corporations under public law and directly financed by their mem- bers. This is one reason they meet their representational obligations so efficiently. Today, the Association of the Austrian Vehicle Industry represents 180 companies with over 35,000 employ- ees. The vehicle industry is one of Austria’s three largest industrial sectors. Despite this impressive growth, the Association itself has managed to keep its organizational structure lean. It continues to have the lowest membership dues of all industrial associations within the Federal Economic Chamber in Austria. The available resources are carefully and frugally allocated. Part of them go to cover current operating expenses and part go to a foundation that helps promote research and development by awarding prizes to young engineers for outstanding master’s theses and dissertations. All this is possible because the Association is an autonomous entity within the Austrian Federal Economic Chamber and has the latitude it needs to give its members the best possible representation. We are therefore carefully following the efforts of other parts of the overall organization of the Federal Eco- nomic Chamber to bring about structural reforms to improve performance. One of our contributions to this discussion is our demand for improved member services at reduced costs. In the future, we expect to be able to continue our optimum representation of the interests of our member companies. That is our obligation. And we are prepared to fulfill it. Bruno Krainz President of the Association of the Austrian Vehicle Industry CEO of MAN Nutzfahrzeuge Österreich AG Automotive Austria One Hundred Years of Official Austrian Vehicle Industry Representation Forewords 11 Lively International Demand for Automotive Products “Made in Austria” Prof. Dr. Bernd Gottschalk The Association of the Austrian Vehicle Industry can look back on a long history as one of a group of institu- tions in the automotive industry that has helped to shape the fate of the sector from the outset. It is therefore a great honor for me to congratulate the Association on this major anniversary. I do so as President of the International Organization of Motor Vehicle Manufacturers (OICA), but also – with your permission – in my capacity as long-time President of the German Association of the Automotive Industry (VDA). Finally, the invention of the automobile is associated primarily with three names that forged additional strong bonds between our associations and industries: the Germans Gottlieb Daimler and Carl Benz and the Austrian Sieg- fried Marcus. Another of Austria’s most famous automotive pioneers was Ferdinand Porsche, who also put his indelible mark on the German vehicle industry. The Austrian auto industry recognized early on that its potential for domestic growth was limited and that it had to shift to global markets and prove itself there. That explains why Austrian companies became champions in the triple virtues of expertise, innovation and quality. This formula for success succeeded brilliantly, as the in- dustry’s 87 percent direct export ratio shows. Automotive products “Made in Austria” satisfy customers around the world. The prime export destinations are the European Union and the United States. With its superb engi- neering expertise, the Austrian vehicle industry is considered a worldwide leader in the sector’s development. In this capacity, it contributes significantly to Austrian economic growth as an employer, exporter, and generator of sales. The vehicle industry accounts for 11 percent of the national industrial output and 12.5 percent of total Austrian exports. The long-standing presence of a number of international, especially German, automotive groups attests to the excellent conditions Austria offers as a business location. Manufacturers such as BMW and MAN have plants in the country and DaimlerChrysler and Saab have production agreements for the complete manufacture of various vehicles in Austrian plants. Austria