The Luxembourg Automotive Sector 

With 10,000 employees in almost 40 companies generating more than €1.5 billion annual turnover, Luxembourg has become a key location in Europe for Tier 1 and Tier 2 suppliers to the automotive industry. 

It is easier to understand the intrinsic value of the Luxembourg Automotive Sector if you understand its place in in the European and ultimately global markets. With nearly 731 million inhabitants and over 22 million new passenger car and light truck registrations each year, Europe remains the largest automotive market worldwide. In 2007, more than 24 million light vehicles were produced in Europe alone, compared to 75 million worldwide for the same period. By 2010, the European demand for light vehicles is expected to exceed 22 million cars, which makes the automotive industry a highly dynamic sector of the European economy.”

If you drive a car, you probably already know Luxembourg 

As much as two-thirds of the value of a car is now designed and produced by outsourced companies and people are becoming more aware that parts in their cars are very often made in Luxembourg. Because of its central location and multinational workforce, Luxembourg-based companies can build and maintain close relationships with their clients, adapting products precisely to their needs. In fact, for example, Luxembourg based companies with a global presence have been well positioned in ADAS and active/ passive safety systems development for many years.

The country’s stability and cooperative labour situation ensures “on-time” delivery, while the government strongly backs R&D projects.

Within Luxembourg’s Automotive sector there is a wide range of expertise in components and services, including:

  • Chassis & body Power train/Fuel management Active/passive safety – ADAS
  • Vehicle dynamics
  • Vehicle connectivity & Infotainment Comfort & convenience – HMI

Luxembourg is a major place for the automotive industry’s supply chain with an exceptional business environment. All major car manufacturers (from France, Germany, United Kingdom, etc.) can be supplied from Luxembourg on a same day delivery basis, thanks to a central location at the heart of Europe and well-developed transportation and communication networks (modern logistic parks and many others logistic advantages). Luxembourg highly competitive business environment is particularly favourable for specialised Tier 1 and Tier 2 suppliers, who provide almost two-thirds of the average car’s value added.

Top tier automotive suppliers enjoy Luxembourg central location in Europe and its unique capacity to design both research and business activities with a tailor-made regulatory framework.


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