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Matthias Tupy, Brose

Maintaining Momentum Is The Challenge

Brose is a reliable partner to its customers and a responsible employer to its workers. It also contributes to the development of Serbia’s economy and society by supporting various projects in the fields of sport, culture, education and social welfare

Despite numerous challenges, Brose has succeeded in implementing all of its plans in Serbia. According to previous announcements, the company intends to complete its investment cycle in Pančevo by 2025, when it is projected to have a total of 1,100 workers and an annual turnover of 440 million euros.

Has Brose maintained the same positive rhythm since the initial period of its investment here?

– Brose has maintained its positive rhythm and achieved its goals in Serbia so far.

We have launched series production of electric motors for cooling fans, power steering motors and electric oil pumps, as well as electronics at our new plant in Pančevo in the summer of 2021. It was during that same year that we also launched our R&D activities in Pančevo, which we are expanding in accordance with our plan.

Have your plans changed? What kind of vision do you have now?

— Brose has not changed its plans to complete its investment cycle in Pančevo by 2025. The company has so far invested around 180 million euros in the new plant and expects to employ around 1,100 workers by 2025. However, our business development is linked closely to the situation on the volatile automotive market in general, which is today confronting several crises.

Brose’s vision is to shape the future of mobility with innovative, competitive and efficient mechatronic solutions. We are a reliable partner to our customers and a responsible employer to our workers. We also contribute to the development of Serbia’s economy and society by supporting various projects in the fields of sport, culture, education and social welfare.

With awareness of the fact that 50 per cent of new cars worldwide are installed with Brose parts, we can’t help but ask you what your Pančevo factory is sending out into the world…

– The Pančevo factory is an important part of Brose’s strategy to satisfy the growing demand for its products and to develop new technologies for the future of mobility. Our location is the development centre for Cooling Fan Modules (CFM) and we are developing and producing everything regarding that product, expect the plastic frame. Beside CFM, at the Pančevo factory we are also producing and exporting electric motors for steering systems and electric oil pumps, as well as electronics.

Serbia has taken commendable strides in enhancing its appeal to foreign investors and increasing its competitiveness

We are very proud that our products are innovative and installed in modern vehicles that provide a better consumer experience. For example, we are producing electronics for Radar – Smart opener generation 3, which enables hands-free opening of liftgate doors. These are mechatronic components and systems that provide comfort, safety and efficiency for motor vehicles. The electric oil pump in particular is a key component of hybrid and electric vehicles.

You have more than 650 employees and excellent cooperation with schools and colleges, while you pay above-average salaries and are considered a desirable employer… Do you believe that your success is dependent on your people’s level of education and motivation?

– Brose is a company that values its employees and their education and motivation. We believe that the company’s success is dependent on the quality and performance of its people, who are the driving force behind our innovative and efficient mechatronic solutions.

Brose offers its employees excellent working conditions and benefits, such as flexible working hours, health insurance, performance bonuses, training and development opportunities, and much more. We also cooperate with schools and colleges in Serbia to support the education and career development of talented youngsters.

Brose provides scholarships, internships, mentoring programmes and practical projects for students and graduates. Brose has also received the Top Employer 2023 award for its excellent working conditions and employee benefits. Brose is highly committed to CSR projects and supports the local community and students of the three biggest universities in Serbia, as well helping with donations to various humanitarian associations.

The industrial revival of Pančevo was launched by company ZF, after which Brose arrived, while we now have an announcement of the arrival of company Naval Box – CAL. Do you expect more German investors to arrive in the city?

– Pančevo has been attracting a lot of interest from German investors, especially in the automotive industry, over recent years. With regard to Serbia’s business environment, it is very evident that Serbia has taken commendable strides in enhancing its appeal to foreign investors and increasing its competitiveness. The challenge now is to maintain or even increase this momentum, especially under the impression of inflation that is a threat to all industries in all countries.

How do you see the future of the automotive industry? Could hybrid, electric or autonomous vehicles fully replace the kinds of cars that we drive today?

– The future of the automotive industry is influenced by many factors, and the automotive industry is currently already undergoing a major transformation, driven by four disruptive technology- driven trends: diverse mobility, autonomous driving, electrification, and connectivity.

It is expected that hybrid, electric and autonomous vehicles will gradually gain an increased market share and eventually dominate the automotive industry of the future. Autonomous vehicles are vehicles that use sensors, cameras, software and artificial intelligence to operate without human intervention. These types of vehicles offer many benefits for the safety, efficiency and comfort of drivers and passengers.

We are very proud that our products are innovative and implemented in modern vehicles, which provide a better consumer experience

However, there are also some challenges and obstacles that prevent hybrid, electric and autonomous vehicles from fully replacing the conventional cars that we drive today, such as the lack of adequate infrastructure and standardisation for charging, parking and communicating with these vehicles, as well as consumer acceptance and trust in these vehicles’ performance, reliability and range.

It is therefore possible that the conventional cars that we drive today will not be fully replaced by hybrid, electric and autonomous vehicles anytime soon. However, they will certainly play a more important role in the automotive industry and society over the long term.

As a result, the automotive industry will need to adapt to these changes and embrace innovation in order to remain competitive and relevant. With its product portfolio, Brose sees more opportunities than risks in this market development.

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