WARSAW/PRAGUE, Nov 9 (Reuters) - For air filter maker PZL
Sedziszow, Poland's ambitious plan to produce an electric car
from scratch could be the catalyst that helps the auto parts
industry catch up with foreign neighbours.
The company started making battery packs two years ago and
believes the government's 5 billion zloty ($1.3 billion) plan to
build two electric car models will attract more global
automakers to emerging Europe's biggest economy.
"Only new mobility can really boost car production in
Poland," owner and chairman Adam Sikorski told Reuters.
"If the manufacturers see there are sufficient and reliable
suppliers of electric car parts in Poland, they will be more
willing to place assembly plants in Poland."
Auto parts manufacturing accounts for 11% of industrial
production and 4% of gross domestic product in Poland, far less
than in Slovakia, Hungary and the Czech Republic, where the
sector accounts for more than a third of industrial output.
But Warsaw believes the switch from combustion engines to
battery cars could provide an opportunity to close the gap.
In July, state-owned ElectroMobility Poland unveiled
prototypes for the Izera SUV and hatchback, two electric models
aimed at the budget market which it plans to launch in 2023.
It's a risky bet.
Government efforts to kick start car industries have a
chequered history at best, with Britain's attempts to help
DeLorean establish a supercar business in the 1980s proving a
costly and embarrassing failure.
Global automakers with decades of experience are already
churning out electric models, and the pressure on Poland's
public finances from the COVID-19 pandemic raises questions over
how much money it will be prepared to put behind the plan.
However, advances in computing and software have lowered
engineering barriers to entry into the auto sector, allowing
Germany's Deutsche Post, for example, to develop its own
electric delivery van, the Streetscooter, from scratch.
And to lessen the risk, Poland will license the
manufacturing platform from a foreign partner, Piotr Zaremba,
head of ElectroMobility Poland, told Reuters.
He declined to name the partner but said it was an automaker
that has brought about 20 new vehicles to market in the past
five years.
In the electric vehicle sector, Germany's Volkswagen
has said it plans to license its manufacturing
platform and has already struck a deal with Ford.
Volkswagen declined to comment for this story.
"We are not building the platform from scratch because it is
too big a risk, from a technical and business perspective,"
Zaremba said. "So at every stage we try to reduce the risk by
using tested solutions."
Starting at a small scale will allow Polish suppliers to
grow alongside the project, building their competitive strength,
which will also help them in foreign markets, he added.
NATIONAL CAR
A highly-skilled, but relatively low cost, workforce has
helped to turn the Czech Republic, Slovakia and Hungary into
investment and production hubs for global car manufacturers such
as Volkswagen, Audi, Daimler and Kia
, among others.
Poland has lagged behind, but believes the switch to
electric mobility has created a new opportunity.
It has already used generous incentives to attract Asian
battery firms such as LG Chem and Guotai Huarong to
strengthen its position in the industry.
Under pressure to reduce emissions, the government said in
2016 it wanted to have one million electric vehicles on the road
by 2025. At around 15,000 currently, that looks a long shot, but
officials hope growing interest in electric cars will help fuel
demand for the Izera models.
Climate Minister Michal Kurtyka predicted Poles would
embrace a national car brand, and its success could raise the
international profile of the country's auto parts industry.
"We have a chance to add an additional boost to this
ecosystem which already exists," he told Reuters.
Even if project doesn't succeed, it could still provide a
boost to the components sector.
"It is difficult to produce a car from scratch and equally
difficult to do it in big volumes," said PwC CEE automotive
industry leader Jens Horning. "But this will attract innovation
and new technology in the supplier space."
($1 = 3.7968 zlotys)
(Writing by Michael Kahn, Additional Reporting by Ed Taylor in
Frankfurt, Editing by Mark Potter)