Asime holds the 3rd International Automotive and Mobility Congress in Vigo

 Asime holds the 3rd International Automotive and Mobility Congress in Vigo
  • Asime has held, yesterday and today in Vigo, the 3rd edition of the international congress AutoMob Summit.
  • The event brought together more than 100 representatives of the leading companies in the automotive and mobility industry at national and international level, who addressed the current state of this industry, with a special focus on the automotive sector, but also on mobility as a whole, the supply chain, the challenge of decarbonisation and digital disruption.
  • The event featured presentations by representatives of OEM manufacturers such as Volvo, MAN and UNVI; value chain tiers such as Gestamp, GKN Automotive and CIE Automotive; industry organisations such as the European CLEPA and the Portuguese AFIA; technology centres such as CTAG; logistics and transport operators such as Suardiaz, Baleària and Cabify; and engineering companies such as CT Engineering Group.
  • In the institutional section, the President of Asime, the President of the Port Authority of Vigo, the Regional Minister of Economy and Industry, the Regional Minister of Presidency, Justice and Sports of the Xunta de Galicia, the Secretary of State for Industry and the Mayor of Vigo took part.
  • AutoMob is sponsored by Carburos Metálicos, CT Engineering Group, Eurofit Group and GKN Automotive.

This morning, at its headquarters in Vigo, Asime held the conference day of the third edition of the AutoMob Summit congress, which began yesterday with a business visit to the GKN Automotive plant and a networking cocktail to promote business generation.

The AutoMob International Congress has moved today to the headquarters of the metal cluster of Galicia, which has offered a meeting for more than 100 business representatives and leading organisations in the automotive industry, transport and mobility. They addressed the state of the industry, with a special focus on the automotive sector, but also on mobility as a whole (aerospace, rail, maritime and new means of transport for passengers and goods), the supply chain, the challenge of decarbonisation and digital disruption, among other topics.

The event was sponsored by Carburos Metálicos, CT Engineering Group, Eurofit Group and GKN Automotive, with Grupo Precisgal and Imecnor as silver sponsors.

Justo Sierra, President of Asime, highlighted that: ‘This third edition of AutoMob Summit comes at a strategic moment for the mobility and automotive industry, in which we are experiencing an unprecedented transformation, marked by the uncertainty that prevails in the electric car, the fierce competition from powers such as China. At the same time, freight and passenger transport must also respond to the enormous challenges of decarbonisation, while new alternatives are emerging in terms of propulsion and ways of getting around. In this 3rd edition of AutoMob, we are highlighting the relevance of the metal industry and its associated technologies, which is the backbone of all mobility vectors, by land, sea and air’.

In order to explore all these topics, AutoMob has had more than 20 speakers: OEM manufacturers such as Volvo, MAN and UNVI; tiers of the value chain such as Gestamp, GKN Automotive and CIE Automotive; sectoral organisations such as the European CLEPA and AFIA in Portugal; technology centres such as CTAG; logistics and transport operators such as Suardiaz, Baleària and Cabify, and engineering companies such as CT Engineering Group.

Regarding the state of the sector, Asime points out that the Galician automotive industry closed the year 2023 with significant increases of 17% in turnover and 2.5% in employment. Vehicle manufacturing increased by 33.7%, as did registrations, especially of electric, hybrid and green fuel vehicles, which grew by 22%. Other mobility sectors such as aeronautics and aerospace recorded significant increases of 5% in employment and 25% in turnover, driven by the recovery of commercial aviation to pre-pandemic levels, but also by the huge market niches opened up in defence and drones.

However, Asime stressed that ‘the situation today seems to partially break with this upward trend, especially in the automotive industry, because the transition to electric vehicles is putting the European industry as a whole in check, as consumer demand for these cars is not taking off at the necessary speed. No matter how much Europe tries to set the pace of vehicle decarbonisation at a political level, the reality is that the consumer does not seem to be prepared to assume the cost involved. It is therefore necessary to put in place greater incentives for the purchase of these vehicles, both in terms of amount and payment terms, as the delay in receiving the MOVES plan subsidies makes it difficult for many consumers, especially the middle classes, to access this type of vehicle’.

At the same time, Asime stressed: ‘both in the automotive sector and in the rest of the mobility sectors, it is particularly important to focus on local value chains, to support national companies and for governments to prioritise the production of certain strategic components or materials in the European Union. In this sense, the tariff policy imposed by the EU on Chinese cars is a first step, not without controversy, but it cannot be an isolated measure, we must be committed to a competitive Europe at the industrial level, and this must be a commitment by everyone, from the large automotive manufacturer to the last small manufacturing plant or workshop in the value chain’. Asime insists that this commitment is demonstrated ‘with the awarding of new projects or contracts, in which, under no circumstances, should price be the only award criterion. Proximity, agility and efficiency must also take precedence, otherwise, the consequence will be a reduction in staff and production and the weakening of a value chain that now comprises more than 200 specialised companies in Galicia’.

Opening

During the institutional opening of the event, Carlos Botana, President of the Port Authority of Vigo, highlighted the role of ports in the automotive and mobility sector: ‘The port of Vigo moves 650,000 cars a year, but more than that, automotive parts are leaving from here to all destinations in the world. Proof of this is the 40% growth of the container terminal, linked to a large extent to these automotive components. Our task, from the port, is to work on reducing logistics costs and to debate in forums such as AutoMob on technological development, which is going so fast that we are going to see different solutions for each transit, from hybrid and electric ships, gnl, biogas and even, sooner rather than later, methanol ships…. We have to articulate multiple solutions for every need.

For her part, María Jesús Lorenzana, Regional Minister of Economy and Industry of the Xunta de Galicia, stressed that ‘Galicia has a lot to say internationally because of the weight of the automotive industry in our economy. We are at a key moment in which, from the administration of the Xunta, we are trying to accompany companies. Therefore, we are working on the master plan for the automotive industry, while we have launched extraordinary aid for the components industry worth 18 million euros, an additional line for the CTAG, the extension of MOVES III for the purchase of electric vehicles, and the reduction of bureaucracy in the administration to transform the dialogue with companies, which are the ones that generate economic development and quality employment. Lorenzana also called for the highest quality standards in the management of European funds and their fair distribution, taking into account the weight of each industry and each community: ‘Galicia has received 642 million out of 33,000 available, of which half is still unresolved. We are the 6th community in receiving funds from the VEC, when we are one of the most powerful communities in the automotive sector. European funds must be decentralised, it is the communities that have the capacity to ensure that this money reaches companies’.

Closure

In the institutional section, Diego Calvo, Regional Minister of the Presidency, Justice and Sports of the Xunta de Galicia, declared that: ‘The Xunta has the Galician mobility strategy, to guarantee sustainable travel, which means reducing road travel by 5%. We have to opt for alternatives to the private car, and reduce travel time. We are committed to sustainable mobility with pedestrian and cycle paths, park and ride facilities, safe school routes and more recharging points. We are also committed to public transport with a plan of 140 million euros per year and intermodal stations, but we need the central government to continue supporting the Ave and the medium distance train.

Rebeca Torró, Secretary of State for Industry of the Spanish Government, wanted to be present at this meeting, where she highlighted that ‘this forum comes at a key moment, due to the geopolitical reality and strong competition that surrounds us. The Pertes are the key lever to avoid being left behind in the global race for electric mobility. The Perte VEC, with an investment of 3,700 million euros, is a mechanism that has been evolving in its multiple calls for proposals, to anchor strategic projects in our country. The different lines have meant a public investment of 1,800 million euros in Spain. Great figures, but the important thing is to translate them into reality, as in Galicia, which has received 164 million euros of the funds managed by the Ministry of Industry, 93 million euros have gone exclusively to electric vehicles to Galician companies and SMEs such as Stellantis, with 54 million euros, or Borgwarner, with 25. We cannot work in isolation, but with a Europe that is committed to energy transition for a real European industrial policy that allows us to compete globally, from the pacts and not the division.

The congress was closed by the Mayor of Vigo, Abel Caballero, who stressed that ‘We are living a moment of redefinition in the location of the industry in the world, and we have to be there, because here we have the capacity to take risks and attract investment. The first thing is to invest in electric and connected vehicles through European funds. But we are also developing a new model of urban mobility in Vigo, with 35 ramps and lifts and with the support of 100 million European funds through the Spanish government for the city of Vigo’.

Key messages from the 6 thematic sessions

In total, the congress hosted 6 sessions on current issues in the automotive and mobility industry.

The first of these addressed the challenges from the point of view of OEM manufacturers, led by Volvo. Jorge Muñoz, Dircom of the company, explained its commitment to personal, sustainable and safe mobility, while highlighting several of the challenges faced by manufacturers. ‘It is time to find a better balance between free trade and producing where we sell. We are also in the midst of a determined shift towards electrification and phygital distribution models, which must evolve traditional dealer networks. On the other hand, to face the arrival of new brands and third countries, we have to focus on continuous improvement and differentiation, while promoting autonomous driving to reduce human error, which is behind 90% of accidents’. Muñoz also proposed making progress in improving government regulation through the figure of sectoral clusters and forging strategic alliances with technology companies to further advance innovation in the sector.

This initial presentation was followed by a panel of automotive tiers, with the companies Gestamp, GKN Automotive and CIE Automotive, who discussed the engineering, logistics and digitalisation challenges faced by suppliers in the value chain in order to remain competitive. Fernando Royo, Gestamp Vigo Plant Manager, stressed that ‘at this time of unprecedented transformation, electrification is already a reality and a challenge in itself. A reality, together with industrial digitalisation and sustainability, which for suppliers such as Gestamp represents a key opportunity for the automotive industry to continue to be the economic and technological pillar it has been for years’. Camilo Gómez, Head of Industrialisation of New Products and Processes GKN Automotive, highlighted that ‘we have to focus on people, on the tasks that add the most value, look for our strengths and find different ways to compete, which are not only based on labour and operating costs. In our case, at the Vigo plant, we have gone from 60 robots to 190, dedicating a huge effort to integrating our workers with this automation technology’. Íñigo Loizaga, Director of Engineering, Quality and Environment at CIE Automotive, stressed that ‘Not all technologies are effective, you have to choose the one that works for each plant. At our plant in Ourense, for example, we do forging, which is a traditional technology, but we are leaders because we work with on finding the best team, motivating them and being super efficient, hand in hand with local suppliers’.

In the international section, AutoMob featured a panel with experts from Europe. The top representatives of CLEPA (the European Association of Automotive Suppliers) and its counterpart in Portugal (AFIA) spoke about shared challenges and also about investment and cooperation opportunities in a globalised environment.

Benjamin Krieger, Secretary General of CLEPA (European Association of Automotive Suppliers), recalled that the electric vehicle fleet is currently 450,000 units below forecast, while the overall fleet has lost two million units since the pre-pandemic. ‘The technological part will be solved with time and money, but the basic problem is that the consumer is confused and does not dare to buy electric vehicles, because of cost and uncertainty. At the same time, automotive companies have made huge investment efforts for a demand that does not exist now. The sector is firmly committed to decarbonisation, but Europe has regulated without having an industrial policy behind it; we need a roadmap agreed with all the agents in the value chain’.

Jorge Castro, Vice-President of AFIA (Portuguese Association of Automotive Manufacturers), stressed that ‘it is clear that the electric car will take off, but it needs more time, time that companies do not have, as many of them are SMEs that cannot afford the huge investments required for this conversion, accelerated by the deadlines set by Europe. Now they have approved tariffs on China, but it is still an artificial measure, we need to demand a minimum percentage of local components in cars sold in Europe, otherwise the impact on the local value chain is irremediable’.

Luis Moreno, Managing Director of the CTAG technology centre, gave a presentation on electric vehicles: ‘Globally, the latest forecasts expect electric vehicles to reach a 50% share of sales and 30% of the total fleet by 2035. However, to get there, we face multiple challenges in Europe. While hybrid sales are growing exponentially in China, Europe should review its ban, as it is not justified on emissions. On the battery side, we need to create our own ethical external chain, where sustainable mining in Europe can make a difference. We also need to scale up local battery production and improve permits, authorisations, incentives and public policies to facilitate deployment, stimulate production and promote training.

In terms of freight transport, MAN Truck & Bus spoke about road transport and Suardiaz about maritime and ro-ro transport. Romina Fernández, Branch Manager Galicia at Suardiaz, stressed that ‘transport operators are making great efforts to integrate fuels that produce fewer emissions, working hand in hand with universities on combustion with ammonia, hydrogen and other biofuels’. Jerónimo Miranda, Electromobility Expert at MAN Truck & Bus Iberia, for his part, stressed that ‘There is a lot of doubt among end customers, but electrification in heavy transport is perfectly viable. The challenge is the great tensions in the logistics chain, because it is increasingly demanding to minimise stops, which makes it difficult to introduce electric vehicles because stopping to recharge is inevitable. If we manage to make this more flexible, the technology is ready and proof of this is our electrified heavy-duty vehicles that are already in operation. In parallel, another challenge is the charging infrastructure for heavy vehicles in Europe, due to space and the low number of existing points, and the need to redefine the profession of the truck driver to make it attractive to the new generations.

The last panel addressed the challenges of future mobility and passenger transport. Javier Cervera, Head of Energy Transition at Baleària, highlighted ‘its commitment to decarbonised ships such as the Cap de Barbaria, built at the Armón Shipyard in Vigo, but also to other solutions such as dual engines that allow us to use liquefied natural gas, which reduces emissions by up to 25%’. For his part, Eloy Pérez, CEO of UNVI, confirmed that ‘electrification is coming slower than expected, the investment effort is very high and all the legal changes and the regulatory framework is generating a lot of instability for both individuals and medium-sized companies like ours. Jose Evelio, Country Manager Spain, addressed mobility from an aerospace perspective, with his participation in air taxi initiatives but also in a groundbreaking space tourism project, HALO Space, which is currently in the testing phase. ‘It is an initiative of a Spanish entrepreneur, with 100% national engineering, which is going to send a pressurised capsule that goes up with a helium balloon to about 30 kms and allows you to see the curvature of the earth as a space experience. These are 8-passenger + pilot spacecraft, costing less than 200,000 euros, which are moving towards a new idea of mobility into space’. Finally, Javier Dorado, Director of Public Affairs at Cabify, stressed that ‘young people are moving towards shared mobility and not necessarily towards owning a vehicle. In this context, interoperability and route optimisation will make a difference’.