With 9,000 employees in 30-plus companies generating more than €1.5 billion annual turnover, Luxembourg has become a key location in Europe for first and second tier suppliers to the automotive component industry.
As much as two-thirds of the value of a car is now designed and produced by outsourced companies. Because of its central location and multinational workforce, Luxembourg-based companies can build and maintain close relationships with their clients, adapting products precisely to their needs. The country’s stability and cooperative labour situation ensures “in-time” delivery, while the government strongly backs R&D projects.
Around one-fifth of the sector’s activity in Luxembourg is devoted to research and development. Examples abound: IEE, whose sensing products are becoming standard in most of the world’s cars; multinational tire manufacturer Goodyear; Guardian Industries, producer of high-specification glass for the automotive and construction industries; Delphi Automotive, with a Customer Technology Centre, Global Powertrain and European Thermal Division HQs.