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Major addition to Gothenburg's automotive cluster

Geely Innovation Center Europe is an important addition to Sweden as a research nation. Western Sweden's automotive cluster will be further strengthened and made even more attractive.

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According to analyses conducted by Business Region Göteborg, the automotive industry is the sector that delivers the greatest spin-off effects in the rest of the economy. One new job in the automotive industry creates an additional 2.4 job opportunities elsewhere.

Consequently, the research-focused Geely endeavour, with space for at least 3,500 employees, is important for several reasons. It confirms the Gothenburg region's strong standing in expertise and innovation and can lead to other actors also choosing Gothenburg. Parallel to this, it broadens both the employment market and expertise in the region. The opportunity to get involved in the development of new transport services is appealing in itself and will attract even more skilled Labour.

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Henrik Einarsson

"What's more, it creates new jobs in completely different sectors, which provides employment for many people and economic growth for both the Gothenburg region and Sweden as a whole," says Henrik Einarsson, Head of Establishment and Investment Services at Business Region Göteborg.

In recent years, the automotive cluster has developed bit by bit, attracting both well-established and new actors. Large companies such as CEVT, the new car brand Lynk & Co, the two Volvo groups, Ericsson, the software development start-up Zenuity and many small, innovative companies are creating new products and services.

Lindholmen Science Park is home to developers from many different parts of the industry, all gathered in a small geographic area. This high density alone is a competitive advantage. It promotes networking and spontaneous collaboration on ideas across company and industry boundaries.

Geely's decision also strengthens Gothenburg's chances of being chosen for Sweden's national research centre for electromobility, which is currently under consideration.

"The automotive industry is undergoing great transformation, with Gothenburg claiming world-leading positions in many fields. The major trends are electrification, self-driving vehicles, connected vehicles and the sharing economy," says Henrik Einarsson.

The high level of expertise is behind the automotive industry's rapid growth in the region. However, as the industry undergoes transformation, the required skill sets are also in flux and the risk of a shortage of specialist workers can pose a challenge. This is an issue that needs to be addressed not only by the industry, but also by universities and other stakeholders.

A report from Region Västra Götaland and Business Region Göteborg highlights the issue in interviews with 20 different companies. It is apparent that human resource planning will be a critical component moving forwards.

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