How Dependent is the Austrian Automotive Industry on Volkswagen

The Austrian automotive industry is heavily reliant on German carmakers, with 65 percent of the companies exporting directly to Germany. Recent challenges faced by VW, including plant closures and downsizing, threaten Austrian suppliers, particularly in automotive clusters in Upper Austria and Styria. This study identifies 135 Austrian companies connected to VW, categorised by supply type (e.g., components, machinery, electronics). Approximately 6,300 jobs are directly at risk, with dependencies concentrated among a few large firms. Component suppliers are most vulnerable to immediate effects, while machinery suppliers may face longer-term impacts from cancelled projects. These findings highlight the need for structural reforms in the EU automotive supply chain, including energy cost reductions, increased automation, and enhanced technological competitiveness, to mitigate risks and ensure resilience in the face of industry challenges.