AUTOMOTIVE CLUSTER BULGARIA HELD ITS ANNUAL INTERNATIONAL CONFERENCE IN SOFIA IN JUNE

From April 25 to 27, Bulgaria was the host of the international conference Automotive & Battery Forum 2023, organized by Automotive Cluster Bulgaria, in partnership with the InvestBulgaria Agency and Kinstellar. The event was held over three thematic days, during which over 40 established international experts from the automotive industry presented the latest breakthroughs and outlined the future development of battery technologies, digitilization of production, automotive software, cyber security, artificial intelligence and much more. The conference took place just one day after the signing of the declaration of Bulgaria’s accession to the European Battery Alliance – confirmation of our country’s and Automotive Cluster Bulgaria’s commitment to building a strong European battery value chain and a competitive industry. Among the official guests at the opening were the Deputy Prime Minister for the Management of European Funds Atanas Pekanov and the Minister of Economy and Industry Nikola Stoyanov. Deputy Prime Minister Pekanov emphasized the presence of all the prerequisites for a flourishing battery industry in our country, and Minister Stoyanov pointed out that electric mobility will determine the future of the industry in the next 10 years. It was also announced that a new industrial zone for the automotive industry would be established near the capital of Sofia – in Dobroslavtsi, which aims to attract new foreign investments with several government incentives and opportunities for partnerships. In line with the government’s efforts, Automotive Cluster Bulgaria continues to work actively to support new investors in finding suitable locations, partners and staff in Bulgaria. The Cluster has an impressive track-record, having already supported most of the large automotive investors in the region, such as Bosch Engineering Center, Etem Gestamp and many others, in their establishment in the country. On the second day of the Automotive & Battery Forum, which was named Innovation Day, several expert speakers discussed recent breakthroughs in the industry. Among them was Mariana Iteva from Veolia, who revealed what the company’s solutions are for a sustainable future of the industry. Eng. Krasimir Krastev from Siemens presented the company’s solutions guaranteeing safety in the production, storage and charging process of Li-Io batteries, and James Glover and Ross Bearman from Viridian EV and Orlin Radev from Ampeco took part in the panel on the future of charging infrastructure. The variety of international guests confirmed the increasing partnership of Automotive Cluster Bulgaria with several international organizations – Leena Thomas from Global Business Inroads talked about cooperation between India and Europe, while Abdullah Çerekçi from Zorlu Holding discussed the opportunities for partnership between Turkey and Bulgaria, which ACB is promoting thanks to a signed memorandum with its Turkish counterpart. The third day, Automotive Software Day, highlighted two key areas in the field of automotive – artificial intelligence and cyber security. This also corresponded with Automotive Cluster Bulgaria’s plans to develop a training center to upskill professionals in the automotive industry.

AUTOMOTIVE & BATTERY FORUM 2023 OUTLINED THE TRENDS AND ACHIEVEMENTS IN THE INDUSTRY

From April 25 to 27, Bulgaria was the host of the international conference Automotive & Battery Forum 2023, organized by Automotive Cluster Bulgaria, in partnership with the InvestBulgaria Agency and Kinstellar. The event was held over three thematic days, during which over 40 established international experts from the automotive industry presented the latest breakthroughs and outlined the future development of battery technologies, digitilization of production, automotive software, cyber security, artificial intelligence and much more. The conference took place just one day after the signing of the declaration of Bulgaria’s accession to the European Battery Alliance – confirmation of our country’s and Automotive Cluster Bulgaria’s commitment to building a strong European battery value chain and a competitive industry. Among the official guests at the opening were the Deputy Prime Minister for the Management of European Funds Atanas Pekanov and the Minister of Economy and Industry Nikola Stoyanov. Deputy Prime Minister Pekanov emphasized the presence of all the prerequisites for a flourishing battery industry in our country, and Minister Stoyanov pointed out that electric mobility will determine the future of the industry in the next 10 years. It was also announced that a new industrial zone for the automotive industry would be established near the capital of Sofia – in Dobroslavtsi, which aims to attract new foreign investments with several government incentives and opportunities for partnerships. In line with the government’s efforts, Automotive Cluster Bulgaria continues to work actively to support new investors in finding suitable locations, partners and staff in Bulgaria. The Cluster has an impressive track-record, having already supported most of the large automotive investors in the region, such as Bosch Engineering Center, Etem Gestamp and many others, in their establishment in the country. On the second day of the Automotive & Battery Forum, which was named Innovation Day, several expert speakers discussed recent breakthroughs in the industry. Among them was Mariana Iteva from Veolia, who revealed what the company’s solutions are for a sustainable future of the industry. Eng. Krasimir Krastev from Siemens presented the company’s solutions guaranteeing safety in the production, storage and charging process of Li-Io batteries, and James Glover and Ross Bearman from Viridian EV and Orlin Radev from Ampeco took part in the panel on the future of charging infrastructure. The variety of international guests confirmed the increasing partnership of Automotive Cluster Bulgaria with several international organizations – Leena Thomas from Global Business Inroads talked about cooperation between India and Europe, while Abdullah Çerekçi from Zorlu Holding discussed the opportunities for partnership between Turkey and Bulgaria, which ACB is promoting thanks to a signed memorandum with its Turkish counterpart. The third day, Automotive Software Day, highlighted two key areas in the field of automotive – artificial intelligence and cyber security. This also corresponded with Automotive Cluster Bulgaria’s plans to develop a training center to upskill professionals in the automotive industry.

GEFCO BULGARIA PRESENTED LOGISTICS SOLUTIONS FOR THE AUTOMOTIVE INDUSTRY TO TOP MANAGERS IN THE SECTOR

GEFCO BULGARIA IS TAKING PART IN THE FIRST INTERNATIONAL AUTOMOTIVE CONFERENCE. KRUM DONCHEV, SALES AND MARKETING MANAGER, PRESENTED THE GROUP`S EXPERIANCE IN THE MANAGEMENT OF FRIGHT FLOWS OF AUTOMOTIVE MANUFACTURERS IN RUMANIA. The event, organized by the Automotive Cluster Bulgaria, was opened by the President Rosen Plevneliev and gathered more than 300 top executives from the automotive industry in Europe and Asia. Main topics are the opportunities for investment in the sector to produce cars and presentation of good practices of companies already invested in our country, such as the auto parts manufacturer Würth Elektronik IBE Group, Integrated Micro-Electronics Inc., Johnson Controls and others. “GEFCO will definitely contribute to the development of the sector in Bulgaria through its experience and expertise in the automotive logistics. We strongly believe in the willingness of the Bulgarian government to actively support the development of the automotive industry. We believe the sector will be a key factor in the growth of our economy.” said Krum Donchev, Sales and Marketing Manager of GEFCO Bulgaria. He presented operational solutions developed by GEFCO for automotive corporations with production facilities in Romania. The solutions combine internal corporate logistics with outbound ground freight flows, rail transport, and quick shipments from suppliers. The Bulgarian subsidiary of the company offers a full range of logistics solutions in response to the growing presence of Automotive manufacturers in the region, and the growing demand for transport and logistics services for import and export. GEFCO Bulgaria has also been an active member of the Automotive Cluster Bulgaria since the autumn of 2012. The first International Automotive Conference Bulgaria is the first of its kind in the sector in the country and also one of the biggest business events of the year in Bulgaria. The conference participants consider the expansion of their business on the fast-growing Eastern European market. Speed-Press Agency

ANDREA CASTRONOVO, BMW: ELECTRIC CARS ARE THE INVESTMENT OF THE FUTURE

GREECE AND THE CZECH REPUBLIC WILL BE AMONG THE FIRST GETTING THE REVOLUTIONARY I3. BULGARIA WILL HAVE TO WAIT AND BE PRAPARED FOR THAT STEP The world is changing rapidly, the electric mobility is the future, and those who does not realize it today, tomorrow will be in the position of Kodak and Nokia, said Andrea Castronovo, president of BMW Group Central and Southeast Europe. The examples indicate improvidence. Kodak – a leader in photographic materials has missed the oncoming of digital photography, and Nokia has lost its market leadership after the invasion of the smartphones. Currently, BMW took the leadership in the development of electromobility by the city electric vehicle i3 and the sporty plug-in hybrid i8. In both cases it is revolutionary approach. They are not standard models with added battery and electric motor but models entirely designed in accordance with their intended purpose. Lightweight materials, new carrosserie design, advanced engines and batteries to achieve relatively low cost and high run are used. In combination with the models entire complex support services are launched that aim to make their use more acceptable to customers now and in the future. Such are mobile applications that allow the battery charging to be monitored and managed over the phone; the navigation will register not only charging boots, but stops and timetables of public transport, to provide integrated transport solution. Customers will have the opportunity to rent appropriate cars for holiday needs. The investment in the BMW project “i” project is significant and returns on it will be on a later stage. Thanks to that technologies that will bring great benefits in the future are now being developed, said Castronovo. The launch of the BMW i3 begins in the countries that express interest in and are prepared for electric vehicles in terms of legal issues and charging infrastructure. Among these countries are the Czech Republic and Greece. In Bulgaria, this advent-guard model will come later, when the country is ready. Speed-Press Agency

DIFFICULT START FOR “INDUSTRIAL COMMERCE”

THE COMPANY TAKES OVER THE SALES OF HYUNDAI IN BULGARIA 15 YEARS AGO. The current official dealer of the Korean brand is one of the success stories in the Bulgarian automotive business. “Industrial Commerce” gets the rights in 1998 in a very unfavorable position. At that time the crisis in Bulgaria coincides with the crisis in Korea. Hyundai has no plants in Europe, the products are aimed for the Asian customers, and shipping costs are high. Before that there have been two bankruptcies of importers in Bulgaria, an accumulated distrust in the brand and many lawsuits to dealers. These 15 years mistrust is overcome, we have built a strong trade and service network covering the country. Presents us Savina Konstantinova, CEO of “Industrial Commerce”. The efforts of manufacturer and seller complement this success story. For the same period, Hyundai has become an ambitious global player, with strong positions in Europe, with European products having excellent quality and impressive design. “What also helped us is the international branding. Hyundai is a sponsor of all major sporting events – football tournaments, competitions, and this makes the brand better known, “said Savina Konstantinova. However the Sales Championship Title of Bulgaria on the Old Continent is mostly due to the team of the local dealer. “Our mantra is customer satisfaction rather than volume or profits. This is the main reason for our success.” said Konstantinova. Speed-Press Agency

BULGARIAN PROTOTYPE IS GOING TO GENEVA

BASED ON THE CURRENT MODEL THERE IS A PLAN THE CREATION OF MOVING PROTOTYPE TO TAKE PLACE IN GENEVA BUT THIS DEPENDS ON FINDING SPONSORS. There are plans for project “electric taxi” developed by the students from the Technical University Sofia, to be presented at the Geneva Motor Show in March 2014, said Professor Harald Leschke at the International Automotive Conference Bulgaria 2013. Based on the current model there is a plan the creation of moving prototype to take place in Geneva but this depends on finding sponsors. The moving prototype can be used by suppliers of parts and components to show their products in the Global Automotive Forum. The project “E- Taxi” developes further the successful “Universe”, which was developed by Bulgarian students led by Professor Leschke and Prof Draganov. The electromobility is unavoidable and should be prioritized – coming up to the taxi it will have the greatest positive impact. Speed-Press Agency

UP TO 4-5 YEARS, “LITEX MOTORS” WILL REACH FULL CAPACITY

GREAT WALL VEHICLES PRODUCED IN BULGARIA WILL BE AVAILABLE IN ITALY, CZECH REPUBLIC, AUSTRIA AND POLAND. The partner of Great Wall “Litex Motors” will produce 2,000 vehicles this year in the factory in the village Bahovitsa, Lovech. Next year, the production will be increased up to 5,000 vehicles and 15 thousand in 2015. Untill 2017 full capacity shall be reached – 50 000 cars on two shifts, was anounced during the second day of the International automotive conference. “The reason for the gradual increase and still working below the full capacity is the brand developing and the production in parallel. Great Wall is still entering in the new markets and the next year will cover the countries of our region, such as Romania, Greece and Serbia. We are already operating in Montenegro and Macedonia. Up to 4 years we will have a sales network in Italy, Czech Republic, Austria, Hungary, Poland, Slovenia and the region around Bulgaria.” said Anton Donchev, international director of “Litex Motors”. The plant in Bahovitsa works with Bulgarian suppliers and local staff. “Since the beginning we had the idea to use local suppliers and employees. All rechargeable batteries are Bulgarian; lubricating fluids are “Prista Oil” (also Bulgarian supplier). But after all that is final assembly, which limits us in choosing only local contractors.”,said Donchev. “Litex Motors” has held talks with 10 of more than 100 Chinese companies before launching negotiations with “Great Wall”. “We decided that “Great Wall” has the highest growth potential in Europe. Currently, this is the largest Chinese manufacturer of SUV cars and pickups. The production began in January 2012. This is the first factory which produces Chinese cars in the EU.Capacity is 50,000 cars a year in two shifts , but with the addition of a third shift it can reach 100 thousand units. At the moment the entering on the markets in Western Europe is not on the agenda and we have permission from the headquater to grow up to the Czech Republic.”, said Donchev. “Litex Motors” are very satisfied by the quality of production, which is controlled at the end of each zone. “Because of this we were awarded as the best Great Wall plant outside of China two following years and even some recognize us as better than the parent factories in China.” said Donchev. Within a few months the plant is going to start the production of Steed 5 pickup trucks and the SUV Hover 6. The company does not seek to offer the lowest price in the market but the best value for money, attractive products, between 3 to 5 years warranty and best after-sale service. For 2012, Great Wall occupies the 6th place in sales with 3 models and 6.42% market share. The company is the leader in light freight vehicles market. Speed-Press Agency

THE PROGRAM FOR THE SECOND DAY OF THE INTERNATIONAL AUTOMOTIVE CONFERENCE IN SOFIA

TODAY SPEAKERS WILL BE REPRESENTATIVES OF AUTOMOTIVE MANUFACTURERS SUCH AS PORSCHE, BMW AND GREAT WALL. The second day of the International Automtive Conference emphasized the analysis of the advantages and disadvantages of investing in the automotive sector in Bulgaria. The first presentation was held by Mr. Anton Donchev, Litex Motors/Great Wall, which revealed the ambitious program of the company, having the first and the only for the moment modern factory in Bulgaria for production of vehicles. Mr. Thorsten Jordan, Managing Director of Würth Elektronik IBE Group, and Mr. Zlatan Kitanov, General Manager in the Bulgarian subsidiary revealed the difficulties the company is facing at the opening of its production facilities in Bulgaria and panel presenters led by Svetoslav Mladenov, Investment Agency, discussed the advantages for the foreign investors. By the end of the day upcoming presentations are: Mrs. Savina Konstantinova from “Industrial Commerce” will speak for the success of Hyundai in Bulgaria, Mr. Plamen Mitev Willi Betz Group and Mr. Thibaut de Vaureix from Integrated Micro-Electronics Inc. The second part of the day is taken up by participants from the automotive industry like Dr. Andrea Castronovo, president of BMW Group Central and Southeastern Europe, which will make a presenation on the innovative brand BMW “i”. Ph.D. engineer Vladimir Popov from Porsche AG presents the vision of electromobility in the sports segment as Head of Engineering Energy Management Panamera at Porsche. The ecology topic and electro mobility continues in the panel discussion “Industrial Cluster “Electric vehicles“, Bulgarian Sience Academy, Technical University-Sofia, and “Leschke Design“. Speed-Press Agency

THE ADVANTAGES IN INVESTMENT IN BULGARIA WERE PRESENTED

STABLE CURRENCY, LOW TAXES AND GEOGRAPHIC LOCATION ARE THE MAIN QUALITIES THAT FOREIGN COMPANIES ARE SEEKING. Advantages and disadvantages of investing in Bulgaria were presented in the International Automotive Conference in a panel moderated by Svetoslav Mladenov, Executive Director of the Investment Agency. “Bulgaria has many advantages as a strategic location, very low wages; flat income tax 10% and 0% for regions with low unemployment. Investors receive shorten administrative procedure by one-third, also financial assistance for training employees to acquire vocational training and infrastructure development. By the end of the year we will have 50 working factories in the automotive industry.”, said Mladenov. His statement was confirmed by Mr. Alexander Uzunov, Head Key Projects at Behr-Hella Thermocontrol. The company invests in construction of a new plant for auto parts in Bozhurishte, close to Sofia for 42.5 million lev. “We have looked at more than 50 locations in Europe and we took into account several factors such as quantity, quality, logistics, payroll, stability, legislation. We have received support by the Bulgarian government. We were thinking also of Macedonia, but chose not to take it because of our specific needs. For example proximity to international airport, as it is in Sofia.”, said Uzunov. According to the professional, Bulgaria must do more to improve the image of the country for foreigners on their first arrival. Dr. Mitko Vassilev, CEO of the German-Bulgarian Chamber of Commerce, presented analysis, according to which 75% of the 78 German companies in the country would invest again and are satisfied with its operations in the country. “The result is good and positive, but still low when compared to other countries. SMEs have a huge potential for development. In Germany there are more than 400 supporting programs; in Bulgaria we still don’t have such amount. Yes, there is corruption, as well as in Germany, but last year there was no change in the right direction.” said Vassilev. Mr. Marcel Schwab from Ernst & Young promised assistance to all companies that are preparing to invest in Bulgaria. “We can help the companies with information about the legislation system. Bulgaria is much better country as what pictures are showing abroad. Companies feel these advantages and we support them. Here are coming investors who need low-cost productivity and highly qualified staff. I am telling them to invest the difference of lower taxes, compared with other places, in training. This will have a very quick return on investment. People are very well educated in the schools, but not in the technical sense. I think many still do not prefer Bulgaria as a destination because of ignorance.” During the discussion was presented the investment of Kemmler Electronics. The company has a plant in the Czech Republic for 17 years, but in long term position, the operations will become too expensive. “Therefore, we decided to find another place to invest. Looked at opportunities in Serbia, Slovenia, Ukraine, and finally decided to come to Bulgaria. According to us here the situation is stable as for the political environment and currency, which is one of the most important factors. The Czech Crown changed with 30-40% in the recent years and this has had a huge impact for us as a producer. Bulgaria is also in the heart of Europe, and there is a sea connection with Turkey. In contrast to our center in the Czech Republic, here the people can do much more things besides production.” said Stefan Reiber of Kemmler Electronics. Speed-Press Agency

IN EACH CAR THERE IS SOMETHING BULGARIAN

THE PLANT WÜRTH ELEKTRONIK IBE IN BELOZEM HAS PRODUCED 202 MILLION PARTS THAT REACH ALL CAR MANUFACTURERS The supplier of electronic components Würth Elektronik IBe is working in Bulgaria since 2002 when purchasing a neglected barn in Belozem and hires its first employees. In ten years the business has grown over 200 times and last year they produced 203 million parts that are built into larger components of the next in the chain and can practically reach every car on the planet. So it appears that on average at least two gadgets in every car are made in Bulgaria, said at the International Automotive conference Mr. Thorsten Jordan , Managing Director of Wurth Elektronik IBe. The company itself is a model of rapid development. Founded in 1982 in a small garage in Germany, takes advantage of the fast growing market of electronic components in cars and currently has plants in the Czech Republic, Mexico, and China. The Bulgarian factory has 243 employees and is second after the Czech one, but it is larger than in Mexico, China and Germany. “We have not had any problems; we are trying to think locally and give the responsibility of the local team. This formula works well.” said Jordan. Future plans envisage the transfer of new, more intelectual activities in Bulgaria to exploit the potential to create more attractive jobs for young and higheducated people. Our story here is successful and this allows us to give advice to other investors. “Do not copy- paste a model from one to another country. This culture is different from the one in Germany, but that does not mean you can not develop a successful business.” added the manager of the Bulgarian branch Zlatan Kitanov. Speed-Press Agency