Elena Arroyo (MCA): "We will promote all the synergies that the sector needs to build a solid project"

AutoRevista - Vehicle projects are being announced at various factories in Spain, including Stellantis in Madrid. How can companies in the Madrid region, given their geographical position, opt to participate in these projects? 

Elena Arroyo de Oñate.- The Robert Bosch plant in Aranjuez, together with Stellantis Zaragoza and Benteler in Burgos, have been the beneficiaries of PERTE VEC II. Although at the moment it is a provisional resolution of the Ministry of Industry, it is true that Bosch was also a beneficiary of PERTE VEC I, in which it works together with Volkswagen. In the first call for proposals, a consortium had to be set up in which, in addition, 30% of the financing was to be provided by SMEs. Thanks to this collaboration between the consortium and MCA, we were able to offer Madrid-based suppliers the possibility of carrying out certain tasks that the consortium considered to be the most appropriate for SMEs to develop. 

The future PERTE VEC III and PERTE VEC IV have already been announced, and although it will no longer be compulsory for companies to present themselves in consortium or involve SMEs, it is clear that collaboration between the links in the value chain will be key. In this sense, at MCA we will promote all the synergies that the sector needs to build a solid project, in the event that they decide to apply for the next two calls for proposals, of course. 

AR.- How can the cluster's collaborative or strategic actions increase the possibilities for these projects or others outside Spain?

E.A.de O.- At MCA we collaborate with Invest in Madrid and Madrid Investment Attraction to raise awareness of the automotive ecosystem in the region and attract the establishment of potential foreign companies related to the sector. In fact, we are very happy with the arrival of HORSE in Madrid, which is Renault's engine division. They have recently moved their world headquarters from Paris to Madrid, so we have the headquarters here, which is very positive.

In terms of outbound projects, MCA collaborates with the Enterprise Europe Network (EEN), which is a global support network for SMEs. In this joint work, we take advantage of international business opportunities to help cluster members to seek business agreements abroad. In this way, we connect supply and demand, so that business agreements materialise. 

AR.- Recently, MCA adhered to the ACEA Manifesto to achieve a more competitive, digitalised and sustainable European industry, how does the cluster intend to materialise this adhesion in projects?

E.A.de O.- The manifesto of the European Automobile Manufacturers Association highlights the value of the sector, makes five policy recommendations for the automotive industry to be at the centre of the agenda and proposes a roadmap to make it more competitive. At Madrid Automotive Cluster we could not agree more. I believe that the challenges are shared, and we need a stronger industry to be more competitive globally. In addition, in Madrid, there is the added problem of labour shortage, due to which companies have to turn down orders, which prevents them from growing. 

At MCA we are offering free training in IoT, programming, numerical control so that workers are up to date with the latest software on the market. In terms of hardware, the automotive industry needs to buy machinery, either to expand its production capacity or to renew the old one, so we advise them and help them to apply for grants to facilitate this investment. Thanks to this training in software and advice on machinery, companies increase their degree of digitalisation and make technological leaps. In terms of sustainability, we help the sector to reduce its energy costs, either by choosing the supply contracts that are best suited to its activity, or with subsidies for sustainable investments, such as the installation of more efficient air conditioning systems, the installation of solar panels, etc. 

AR.- Is the cluster working on specific actions to help companies in the transition to electrified propulsion?

E.A.de O.- The Madrid automotive and components industry is firmly committed to contributing to a low-carbon economy, with the aim of improving our energy efficiency and reducing CO2 emissions throughout the value chain. Technologically, we have come a long way in the last five years to achieve the transformation of the vehicle towards electrification, although the environmental conditions in which we find ourselves are not exactly favourable. In the regulatory framework, we find that regulations are ahead of business reality and are pushing for the introduction of electric vehicles, both battery and hydrogen cell, with the aim of improving air quality. In the market environment, the industry is not in the best conditions to achieve the objectives set. 

In the short and medium term, electromobility faces the major challenge of batteries, as the increase in the cost of electric vehicles compared to petrol vehicles is due to the cost of batteries. The raw material accounts for more than 80% of the cost, with lithium being the base material. It is vital to strengthen the lithium value chain in Spain and recover strategic autonomy, awaiting the appearance of sodium batteries that can mitigate this problem. 

The need to reduce local pollution for environmental quality reasons, as well as global emissions measured in tonnes of CO2 equivalent, have led to regulatory requirements that force the mobility industry to focus on new electric propulsion systems. In this sense, we do believe that sustainable mobility regulation is ahead of reality.

AR.- What actions are you carrying out to attract and retain talent, as well as in the area of training?

E.A.de O.- In MCA's Strategic Plan, the first priority is the search for professional profiles. The labour shortage is a problem in the automotive industry, I would say, in Madrid, in Spain and in Europe. This means that companies are unable to fill new orders, they have to turn down orders, which prevents them from growing. 

The connection between supply and demand of labour with a Vocational Training profile for maintenance, assembly, machining, welding, and similar tasks, is another axis on which we have worked in 2022 and 2023, with the participation of MCA in Madrid Motor Student, the racing car competition at the Jarama circuit, with cars designed and manufactured by university students. This is an area that will continue to be central in 2024, as companies still have unfilled vacancies for this type of professional. 

We identify and connect the right professional profiles to the specific needs of the automotive sector in Madrid. This includes raising awareness of the sector among young people, awakening vocations, and the active search for manpower; especially qualified vocational training (VET) for SMEs and Research, Development and Innovation (R+D+i) profiles for large companies in the sector. 

Another action we are carrying out is to connect VET centres with machinery software suppliers. In this way, the software supplier introduces its technology to the students, who in the future will be the factory workers, and potential prescribers of its brand. At the same time, the VET centre has recent software, which is applied in the market, and both teachers and students receive training. Thus, the company, once it receives the student, can be operational much earlier than if it had to spend months learning the system. This shortens the education-business gap.

AR.- How are you working with the Government of the Community of Madrid on lines of action to facilitate the competitiveness of companies and attract new companies and/or projects to the region?

E.A.de O.- The main line of action that MCA is working on with the Government of the Community of Madrid is the purchase of machinery. This is very important because the automotive industry is the second largest investor in fixed assets in Madrid, only behind the pharmaceutical industry. Companies make large purchases of machinery to optimise their production processes, so having stable and agile public aid is very important to incentivise these investments. A less mature area where we need to work even more on coordination is the attraction of vocational training labour. The work in factories has changed a lot, the conditions of cleanliness, automation and ergonomics are very good. In addition, salaries are above the wage agreement, since there is such a great need for personnel, they compete on the basis of economic conditions. 

The rest of the conditions are also good, because there is job stability, with very low turnover rates, and schedules that are met, because once you have finished your number of parts and hours, you go home. At MCA we are giving informative talks about the sector and its job opportunities, both to students in the 4th year of ESO and to vocational training centres. Our next step is to extend these talks to the parents of students, to give prestige to Vocational Training. VET is in great demand by companies, more so than a university profile, which there are plenty of. Moreover, it is a very practical training that is very close to the reality of business. We must continue working to promote and give prestige to industry.

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Interview published in AutoRevista 2.390