The automotive cluster in Stuttgart, Germany developed due to the region's strong education and technology focus, as well as government support for research. Stuttgart is home to renowned universities that supply the automotive industry with well-trained specialists. The automotive industry in Germany grew significantly after WWII and further with reunification and EU integration, driven by high domestic demand for quality products. Stuttgart pioneered the automobile with Carl Benz and Gottlieb Daimler developing the first car there in 1887. Today, the cluster includes major automakers like Daimler, Porsche, and suppliers like Bosch, and benefits from linkages to related industries like electronics, logistics, plastics, and steel.
3. Education & Technology From 19th century: government-financed system for education - focus on scientific research Baden-Württemberg (Stuttgart region) : the most renowned universities in Germany 9 state universities - 3 privates - 22 public colleges Technologically oriented - offer special courses for the automotive sector - more applied research Supply automotive companies with well trained, practical specialists Government-financed system for research in technology, science and business Science-based firms with in-house R&D laboratories
4. Growth Drivers Demand After WWII: Federal Republic Of Germany (West) 1990: Germany reunification + 17 million people 1992: Maastricht Treaty - Creation of the European Market German consumers’ behavior - demand for high quality products Engineering-driven concepts in Germany vs consumer-driven convenience concepts in cars in the US Government Policy 19th century : Abolishment of traditional restrictions on the freedom to engage in business Infrastructure: launch of construction of roads and canals, encouragement of railway construction
6. Development of the Industry Stuttgart region: development of the 1st ever automobile in the 1887 by Carl Benz and Gottlieb Daimler Development of DaimlerChrysler, Porsche & Bosch 1800s:import of technical know-how from Britain and Belgium in machine-building, iron and steel industries 1920s: Industry consisted of 150 small automotive/components producers 1934: Nazi government ordered the industry to standardize production Formation of Automotive Industry Economic Group 1930s: Nazi government initiatives – production going from 52,000 to 352,ooo units Late 1930s: 3rd largest automobile manufacturer in the world