Patricia Moreira (CEAGA): "Galicia is the only region in which an extraordinary plan for the automotive industry has been set up"

Director of the ZF plant in Porriño, Patricia Moreira assumed the presidency at one stage of what is now the Galician Automotive and Mobility Cluster. In this interview, she discusses the current situation of the sector in Galicia.

AutoRevista.- After a record year in terms of turnover and exports, what are the prospects for maintaining or exceeding this level in the current year?

Patricia Moreira.-  Well, our prospects are not so encouraging. In fact, according to CEAGA's estimates, at European level (our companies' main market), 17.2 million vehicle units will be manufactured this year, which represents a drop of 4.2% compared to 2023. Due to supply problems and the uncertainty generated by the energy transition, production forecasts for the coming years have been reduced, remaining at around 17.3 in 2025 and 17.4 in 2026. The impact of this situation is particularly noticeable at the global level. Whereas in March this year global production in 2024 was expected to reach 90 million units, in September the forecast was reduced to 88.5 million units.

According to the market intelligence company, S&P Global, the fall will also affect the Spanish market, from 2.4 million vehicles produced in 2023 to 2.3 million in 2024 and 2.1 million in 2025, a fall of more than 8%. These forecasts will therefore also affect the magnitudes of Galicia's automotive and mobility sector.

AR.- How is CEAGA's fifth Competitiveness Plan going to be deployed?

P.M.- At CEAGA we are currently immersed in the implementation of the fifth Competitiveness Plan for the Galician Automotive and Mobility Ecosystem - PCAM 2030. It is a living plan, which will be updated at least every two years. It has been carried out in conjunction with the cluster companies and, most importantly, it integrates the sensitivity and needs of all: SMEs, large companies, technology suppliers, manufacturers, new mobility companies, etc. It has been a joint work of the whole sector with a great participation of the companies. We are all rowing together in the same direction.

The PCAM 2030 is a living plan, which will be updated at least every two years

The key areas in which we are developing the new cooperative projects are  innovation, people, mobility, impact of electrification, reactivation of the sector, industrial competitiveness, supply chain, sustainability and new regulations and energy. In addition, it has completely new lines of action: impact of electrification, sustainable mobility and talent attraction.

AR.- The interaction of the Galician automotive sector with the local OEM, Stellantis Vigo, and the Purchasing Department of this manufacturer is a relevant factor in the dynamics of the sector, how do you continue working with this OEM and with others beyond the Galician geographical framework?

P.M.- We currently make up a large innovative ecosystem of more than 200 companies, including component companies, the technology centre, start-ups born within the BFA accelerator and, of course, Stellantis. We have a model based on cooperation and collaboration. Always looking for a joint objective: to improve the competitiveness of the Galician automotive industry. To this end, last July we met with Stellantis' Vice President of European Procurement to request that Galician suppliers approved to supply components to Stellantis be consulted in the company's future tenders, especially those linked to a new platform, and also to inform them about the main initiatives deployed in Galicia with the aim of helping to strengthen the competitiveness of suppliers established in the region.

In July we met with Stellantis' Vice President of European Purchasing to request that Galician suppliers approved to supply components to Stellantis be consulted in the company's future tenders

AR.-How is CEAGA supporting the transition of its companies to electric and electrified vehicle projects while still maintaining projects linked to projects linked to internal combustion engines?

P.M.- In the new strategic plan we have a specific action plan called ‘Electrification Impact’ which, of course, includes specific projects such as, for example, a plan for the development of new products/investment in the field of electric vehicles. It is a fact that electrification has established itself as a transformative force, imposing a number of challenges and challenges for our sector. However, in this electrification process there will be many companies that will suffer and others that have to reinvent themselves. The key is to help them invest in retrofitting their production lines. With this objective in mind, we are working hand in hand with the Xunta de Galicia to set up, in record time, an extraordinary aid plan for suppliers, endowed with 18 million euros.

 Another important point for us is to support workers in this change of paradigm. Thus, from CEAGA we are promoting a plan to retrain and retrain workers, through an agreement workers, through an agreement with the Xunta de Galicia, to train them in the new competencies required by the vehicle new skills required by the vehicle of the coming years.

AR.- Entrepreneurship through the continuity of a fruitful incubator such as BFA and the promotion of highly qualified training with projects such as Talent Race, how important will these two vectors be for the future of the Galician sector and what weight do they have in CEAGA's strategy?

P.M- For CEAGA it is essential to bring new talent to the sector, as we are immersed in a path of great technological and labour changes, which we must know how to take advantage of. Above all, in the area of people. We are aware that we have to anticipate the changes and continue to consolidate our mission: to promote high-impact cooperative projects that help to improve the competitiveness of the Galician automotive and mobility industry.

Both the talent attraction plan, Talent Race, and the Business Factory Auto initiative are two fundamental axes in our strategic plan. The BFA is currently in its eighth edition and has exceeded all expectations. Eight years after its in 2016, we can say that it has become a fundamental lever for transforming the Galician automotive industry. Undoubtedly, the main milestone is the figures achieved: 80 new companies created, the 119 million euros of turnover forecast for this year and the 725 jobs generated in Galicia. These are highly qualified and skilled jobs to meet the challenges of Industry 4.0.

 Both the talent attraction plan, Talent Race, and the Business Factory Auto initiative are two fundamental pillars of our strategic plan

Another important milestone for the BFA is the very high survival rate of the participating companies, as the vast majority of them have managed to consolidate themselves as part of the sector's value chain, and we even have important success stories such as Help Flash, Situm, Logicmelt or Efimob.

AR.- CEAGA has been very active in the field of international projects, especially in Europe, where it has projected its level of excellence as a cluster, how do you see the need for greater cooperation at European level to enhance the competitiveness of industry?

P.M.- For the European Commission, clusters have always been key players in promoting open innovation and industrial competitiveness. We have first-hand knowledge of the needs and capacities of our sector, which allows us to act as a bridge or link with SMEs and large companies in the development and implementation of strategic projects.

CEAGA has been actively involved for years in different projects with European funding, collaborating with other clusters and entities from different countries and sectors. Currently, we have four European projects underway aimed at improving the competitiveness of companies, mainly SMEs, either through their digital and sustainable transition (RESIST, SURE5.0), through energy flexibility solutions (FLEXIndustries) or by increasing their technological potential (BRIDGESMEs). Our experience over the years has enabled us to consolidate our position as a benchmark in the main European networks in the field of mobility and the automotive industry, such as the European Automotive Cluster Network (EACN), the European Clusters Alliance and the Cluster Excellence Expert Group (CEEG).

For us, it was essential to be present and to bring the voice of business to the discussion forums that directly influence decision-making on major industrial policies in Europe. We now aim to build on and expand this collaboration through even larger networks. The European Commission is championing the concept of meta-clusters, organisations composed of networks of European clusters around key ecosystems such as ours, where companies, public bodies and universities harness synergies to achieve common goals and secure the future of industry. For us, who have built our foundations on a strong spirit of collaboration, it is crucial to continue to count on this support from the Commission and all European networks to implement projects of value to companies and to ensure their access to European funds.

AR.- How should the dynamic of interaction with the Xunta de Galicia continue to develop with of Galicia with initiatives such as the Supplier Aid Plan?

P.M.- I would like to point out that Galicia is the only region where an extraordinary plan for the automotive industry has been done. In April, within the framework of our Assembly, we asked the Xunta de Galicia for help due to the growing threat of low-cost countries that are causing low cost countries that are causing our companies to lose important orders.

We worked hand in hand with the Xunta de Galicia to implement, in record time, an extraordinary aid plan for suppliers, endowed with 18 million euros

The Xunta's plan is now a reality and we have very positive feedback from CEAGA companies about this extraordinary 18 million euro aid plan for the sector. A first wave of CEAGA's own suppliers are being notified these days, in some cases obtaining close to the maximum subsidy (300,000 euros) and, also important, they are already receiving the amount of the aid.

We would like to highlight, without a doubt, the great joint work carried out with Igape [Galician Institute for Economic Promotion], in record time, to reinforce the competitiveness of the industry

The objective is to reactivate the sector at a time of challenges and major changes. From CEAGA we highlight, without a doubt, the great joint work carried out with Igape [Galician Institute for Economic Promotion], in record time, to strengthen the competitiveness of the industry, to face the great existing competition and to ensure that companies located in Galicia gain competitiveness and can opt for new contracts from Stellantis and other OEMs. We will always continue to support our companies, facing, all together, the new challenges that come as a sector and as a region.

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Interview published in AutoRevista 2.396