VDA Managing Director Braunig: "German Suppliers Show Their Drive for Innovation at Auto Shanghai"

By German Association Of The Automotive Industry vda, PRNE
Monday, April 18, 2011

German Pavilion With 28 Automotive Supply Companies - China Continues to Display Potential

SHANGHAI and BERLIN, April 19, 2011 - "The German suppliers are making an impressive show of their drive for
innovation at Auto Shanghai. As many as 28 automotive supply companies are
presenting their innovations at the German Pavilion alone. And a further 12
suppliers from Germany have their own separate stands at Asia's most
important automotive trade show," stressed Klaus Braunig, Managing Director
of the German Association of the Automotive Industry (VDA), at a press
conference in Shanghai.

Braunig pointed out that the German automotive supply companies had
certainly grown just as rapidly as the dynamic Chinese passenger car market
in recent years. "In 2010 this market increased by more than one third
compared with the previous year to 11.3 million units. In the same period our
suppliers too boosted their presence in China substantially. The number of
production plants of German automotive supply companies - including
subsidiaries, joint-ventures and holding companies - grew by almost a third
to currently 180. This has also had an impact on employment figures. More
than 60,000 people in China are now working for German automotive supply
companies and their subsidiaries - in mid-2009 the number was just under

In the coming years too German suppliers plan to expand their presence
further in China, the growth market. "Let me give you two examples -
Schaeffler is already expanding and consolidating its production capacities
in China," emphasized Braunig. Schaeffler is creating 1,500 new jobs in China
this year alone. Only a few days ago the Bosch Group announced it would be
employing a further 5,900 people in China by the end of 2011. "And the 28
exhibitors at the VDA German Pavilion see major potential in China," added
Braunig. He also pointed that the industry and its workforce in Germany too
profited from the German automotive industry's international commitment on
the world markets. "As a rule of thumb, three new jobs in other countries
create or secure one job back in Germany."

Braunig went on to say that the Chinese market, that is expected to grow
by 11 percent to 12.5 million passenger cars in 2011, was not only concerned
with growth in figures. "China is increasingly developing to a market with
high technological demands. In view of rising emission levels and legislation
too, optimising the powertrain of automobiles with classic internal
combustion engines enjoys high priority." Furthermore, China was playing a
key role in developing electromobility. "Our suppliers possess great
expertise in both areas - conventional engines and alternative drive systems
- expertise that is in great demand in this dynamically growing market,"
emphasized the VDA Managing Director.

Braunig also said that VDA had been attending Auto Shanghai - and Auto
China in Peking that alternates with this show - for many years now. "Both
trade fairs have become steadily more important. They reflect the dynamic
growth in this great country," said Braunig. "Alongside our vehicle
manufacturers who have production plants in China, many of our supply
companies have also been operating here for years."

The following companies are represented at the German Pavilion for
automotive supply companies supported by VDA: AMK Automotive GmbH & CO. KG,
Berger Holding GmbH & Co. KG, Brose Fahrzeugteile GmbH & Co. KG, Buehler
Motor GmbH, C. Rob. Hammerstein GmbH & Co. KG, ebm-papst St. Georgen GmbH &
Co. KG, Emitec Gesellschaft fuer Emissionstechnologie GmbH, Evonik Industries
AG, FEBI Ferdinand Bilstein GmbH & Co. KG, Formel D GmbH, GPM - Gerate- und
Pumpenbau GmbH, Heyner GmbH; Hirschvogel Umformtechnik GmbH, hofer powertrain
GmbH, J. Eberspacher GmbH & Co. KG, Jaeger Poway Automotive Systems
(Shenzhen) Ltd., Joker Logistics Exhibitions & Events GmbH; Kiekert AG, MS
Motor Service Asia Pacific Co Ltd., Muhr und Bender KG, Oris Fahrzeugteile,
Scherdel GmbH, Seeger-Orbis GmbH, Sonderhoff Chemicals GmbH, W.E.T.
Automotive Systems (China) Ltd., Webasto AG, Witzenmann GmbH, Woco
Industrietechnik GmbH.

Braunig explained that China as a growth market required greater presence
of German vehicle manufacturers and automotive supply companies on the
ground. For this, German companies received support from VDA's Quality
Management Center (VDA-QMC), which helps train auditors as well as to train
and certify suppliers. The VDA-QMC office in Peking was opened in 2005, and
the branch in Shanghai one year later.

At the close of his speech Braunig stressed: "Auto Shanghai has become
one of the most exciting automotive trade shows in Asia. The world's most
important International Motor Show is the IAA Cars, which is organized by the
VDA and will open its doors in Frankfurt in Germany in September. We expect
over 900 exhibitors from all over the world and thus a far greater number
than at the last IAA Cars. Of course we are especially delighted that an
increasing number of Chinese exhibitors will once again be present at this
year's IAA."

    Contact: Eckehart Rotter
    VDA - Press Department
    Tel.: +49-30-897842-120
    Email: rotter@vda.de



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