optimising automotive competence FKG

oPTIMISInG aUToMoTIvE coMPETEncE

FKG is the official non-profit trade organisation of the Scandinavian automotive industry. The 25 year-old organisation is also a member of the European Association of Automotive Suppliers, (CLEPA) and utilises this network to increase its contacts and strengthen the position of its suppliers. The association helps OEMs, component manufacturers and designers with everything from advice on legislation and quality control to sourcing new business partners. Philip Yorke reports.

For more than 25 years FKG has made a significant contribution to the development of the automotive industry and suppliers in Scandinavia, by working actively as their spokesperson for the industry to influence, politicians, authorities and the media. The association also creates meeting places to strengthen business relationships, provide opportunities for growth and work to promote future competence and excellence within the automotive industry.

FKG also works continuously to improve the industry’s business conditions. This takes place as a result of its contact with government, parliament, trade and commerce organisations, as well as with Scandinavian research institutes and universities. The organisation also collaborates with a wide range of other industries and organisations on temporary one-off projects. Another important role of FKG is to have contact with the media and to provide information about automotive suppliers and their goals. FKG is consistently consulted when special events take place within the automotive industry.

Promoting new initiatives

The automotive trade magazine ‘Vehicle Component’ is published by FKG five times a year and has a circulation approaching 5000 copies. It also contains the Automotive Technical Association member’s magazine, SVEN, which is an informative newsletter presented in e-mail format that is distributed five or six times per month. This important publication promotes new initiatives within the automotive industry and creates various forums for suppliers to discuss the latest developments in order to help them to make key strategic decisions.

The association also arranges key meeting places to help its members develop new initiatives for their business and to promote growth. A good example of this is the meetings that it arranges at special booths when suppliers gather together at important supplier trade fairs. In addition, FKG arranges business meetings between its members, car manufacturers and component suppliers in other countries under the umbrella title: Go Global.

meeting future challenges

The fast changing and increasing demands on the automotive industry generated by governments and consumers alike is driving the need for new initiatives and new negotiation techniques. FKG continues to develop the competence of its members to deal with future challenges and carries out national branch seminars that cover various topics such as financing, quality, contract law and industrial finance. The association also analyses and comments on current issues affecting the industry so that its members can gain a better understanding of new contracts and thus be able to offer qualified acceptances etc.

FKG is the contracting partner in the joint financed automotive research programme that involves manufacturers and government agencies. This on-going programme is called FFI (Strategic Vehicle Research and Innovation). The organisation also supports suppliers with the formulation of new projects and applies for funding in order to start projects. FKG carries out a profitability analysis each year of the entire automotive market and when required will examine the overall state of the market in relation to such things as the price of raw materials and the changing structure of the industry, and these are carried out at regular intervals.

New branch initiative

Recently FKG formulated a new branch initiative for the Swedish automotive industry that is driven by innovation. The initiative is based on a number of key considerations including the on-going collaboration between parties with similar agendas and the prevailing market conditions for growth. In addition, it is based upon the understanding that the automotive industry accounts for sustainable growth and the development of society. It also relies on a commitment from suppliers to carry out research and development programmes as well as offering a trade policy that provides competitive neutrality.

As a full member of the European supplier organisation, Clepa, with its head office in Brussels, FKG utilises this well-established network in order to create new contacts and to reinforce the Scandinavian suppliers’ position. Clepa’s strength as an organisation comes partially from its network of large global supplier companies and in part from its national and regional branch organisations. The big companies provide Clepa with leverage in its contacts with the OEM car manufacturers. Furthermore, the many medium-sized component suppliers are represented by its branch organisations, which in turn provides Clepa with legitimacy within the EU.

Increasing value of Scandinavian exports

Scandinavia and in Particular Sweden is one of the most dependent regions when it comes to relying on its automotive industries for employment and export revenues. The total value of exports from the Swedish automotive industry, for example, increased to more than K150 billion, which represents 12 per cent of the country’s total exports – making it by far the biggest single industry in Sweden.

From an international perspective Sweden is unique with three car manufacturers that are responsible for manufacturing and development. In addition, two of the world’s largest manufacturers of heavy vehicles, namely Volvo and Scania, are based in Sweden along with the Volvo Car Corporation. These companies constitute an important part of industry and commerce and significantly impact on Sweden’s economic growth. The Scandinavian automotive industry has a high share of the Nordic country’s exports and of its combined manufacturing abroad where approximately 85 per cent of passenger cars and 95 per cent of its heavy vehicles are manufactured outside of Scandinavia.

The association’s many branch organisations work with other key entities such as the Norwegian organisation Norpart, as well as with many Finnish suppliers. The FKG also collaborates with countless other automotive trade organisations including ACS (Slovenia), AFIA (Portugal), AGORIA (Belgium), ANFIA (Italy), AUTIG (Denmark) and FIOEV (France). FKG works actively to support and promote the automotive industry and its suppliers.

In order to be approved for membership the company must have a connection with the automotive industry. This applies to manufacturing companies, as well as to service companies. n For further details concerning the unique range of services offered to the automotive industry by FKG visit: www.fkg.se