Automobile
Industry in Israel
Israel, a prominent
destination on the map of global automobile industry, does not manufacture cars
domestically with an exception of a relatively small special vehicles trade
production (such as vehicles for military or police use, fire-fighting units,
and off-road vehicles). In its history of 60 years, only two attempts were made
to develop an auto-manufacturing base in Israel and the last one was in
1960s. However thanks to its highly educated workforce and culture of
innovation, Israel
offers some of the best automotive technologies in the world. Israel is already a choice source
for quality aluminum-magnesium castings and steel assemblies for Jaguar, MB,
BMW, GM, VW, Peugeot, and Volvo. Jaguar gets its engine heads and Audi buys
engine valve springs from Israel.
Israel’s
automotive industry consists of manufacturers that design and produce
high-technology automotive parts, tooling, systems and sub-assemblies.
Subcontracting is an important component of the industry. Originally
established to support the security,
aircraft, and automotive industries, Israel’s subcontracting industry
successfully integrates all types of complex production processes required for
industry giants. Israeli automotive companies operate in diverse areas like
High pressure die-casting; forging; cold forming & stamping; turning &
milling; metal injection molding; plastic - injection & blow molding;
rubber – extrusion, molding, compression, injection; plating etc. They supply
parts, systems, modules & tooling to the Original Equipment Manufacturers
(OEM’s) and also to the secondary market.
Key Segments –
Metal,
Machinery and Plastic and Rubber
Israeli
companies use their advances in the fields of metals and composite materials to
manufacture metal rods and coils; iron and steel castings; pipes and valves;
and tanks, tools and locks for automotive companies. In the field of machinery,
Israeli companies have earned reputation in manufacturing heavy agricultural
equipment, pumps, compressors and turbines. Plastics industry comprises about
5% of Israel’s
total industrial production. Many plastic manufacturers subcontract for leading
automotive companies in the world.
Success
Stories - (Courtesy - Israel
21C)
Raviv
carbon fabric heated seats, the system designed and manufactured at Kibbutz Revivim in the Negev, proved itself during a drive in
freezing Michigan
weather, now is in development for introduction with a major automaker.
TexoPlast's new hardened fabric, tough and
lightweight, that features a soft, luxurious-to-the-touch material on one side,
and hard plastic shell on the other perfect solution for the cabin floor for a
European Commercial Vehicle Manufacturer.
High-end
luxury seating fabric, called Impala manufactured by Magical Industries that
feels like leather and is anti-stain, has earned high marks in durability
tests.
Electronics
& Automation Technologies - the Multiplier
Electronics
will be the industry multiplier of the future. "Electronic devices and
systems used in a car is around 15 percent of total car cost and is set to increase up to 35%. It is a sector, experiencing
impressive growth. Israel, a home to hi-tech companies offers a number of
innovative technologies in the areas of Driver safety systems, Telematics, Tracking technologies, Manufacturing control
software, Navigation & control systems, Diagnostics, Sensors, Testing &
Measurement solutions, On-board driver assistance systems and so on. Presently,
around 400 Israeli companies operate in the field; more than 150 of them export
close to US $ 1 billion mostly to Western European and American companies.
Success
Stories - (Courtesy - Israel
21C)
IPU
Industries is developing a 360 degree vision system for cars that combines
thermal imaging, radar warning and video cam designed to distinguish and
identify pedestrians, animals and other objects on possible collision course. Elbit and MobilEye are also
developing driver vision systems for Ford, while Idesia
uses driver heartbeat for a biometric-based security.
IPU’s distribution units (PDU) is an intelligent fuse
box, the PDU monitors and supports auxiliary applications such as security systems, audio, GPS, satellite TV, coffee
warmer, and fog lamps. It is easy to assemble, and operates safely with a
minimal energy loss. New Israeli "vehicle to environment"
communications systems include satellite TV reception.
Innovate
to Survive -
Rising
prices of fossil fuels, cities congested with traffic and sever market
competition is forcing auto-manufacturers to innovate cars with higher safety,
fuel efficiency and facilities for users. Israel is among world leaders in
innovation. It has the highest ratio of Engineering graduates and Scientists as
proportion of population. Israel’s
highly skilled workforce, strict compliance to international quality standards
and sophisticated, computerized logistics make it a preferred destination for
R&D for automobile companies. So far Israel has innovated
a number of path breaking technologies and successfully converted technologies
for military use for civilian purposes. Israeli companies also offer electronic
equipment to improve the accuracy, quality and efficiencies of vehicle
production.
Project Better Place, Israel
In
addition, Israel
government has taken a strategic decision to push forward the development of
the electric car for mass transportation. Government of Israel is a partner in “Project Better Place”,
a brainchild of Israeli wiz-kid Shai Agassi (who was number 2 in German MNC SAP) aims to mass
manufacture zero emission cars by the end of 2011 along with necessary
infrastructure of charging batteries and switching stations. Agassi has succeeded in security
US $ 200 million of investment. Automaker Renault-Nissan will manufacture cars
that will run on batteries which can be recharged by electricity and can be
replaced at roadside service centers. Danish Government has joined the
Government and the project has attracted interest of several Government and
leading auto companies.
Contact
Information
For
further information, please contact Trade Department of the Consulate or
contact
Uri Pachter - Executive: Subcontracting & Automotive
The
Israel Export & International Cooperation Institute
29 Hamered st., Tel-Aviv 68125, Israel
Tel. +972-3-5142811 Fax. +972-3-5142881
E-mail: urip@export.gov.il