Andrada Verdes, LEONI Wiring Systems Romania: The automotive industry plays a key role in the local economy, placing our country in an important position

Business Review Magazine’s “Industries to watch in 2024” shines a spotlight on Andrada Verdes from LEONI Wiring Systems Romania, who discusses the transformative trends impacting the automotive industry and its supply chain. Verdes addresses the challenges and opportunities brought about by the transition to electric vehicles, the advancement of automation, and the strategic importance of human resources. The discussion also ventures into the realms of geopolitical stability, rising utility prices, and LEONI’s commitment to sustainability through its ReWire program, emphasizing the company’s proactive stance in navigating the industry’s green transition.

What are the main opportunities and challenges in the manufacturing industry in 2024?

LEONI Romania is a center of excellence in the production of wiring harnesses and components, our company has been awarded many times by its customers for the quality of production and agility in the implementation of new projects. Our vision is to continue to develop the capabilities of our specialized workforce, continuously improve our working environment and strengthen the retention and satisfaction of our team members.

The automotive industry is during a global paradigm shift, driven by two significant forces: technology and sustainability, which are transforming the industry at an accelerating pace. The challenges we face as suppliers to the automotive industry related to European and national regulations (e.g. those related to taxation or labour), as well as consumer behaviours that influence demand in the medium to long term.

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In the context of the legislative changes adopted at the European level to promote the transition to electric cars, given LEONI’s position in the production chain, we believe that our main responsibility is to optimally meet the needs of our customers, regardless of the demand context. Also, the higher degree of automation brings added flexibility to production, increases the quality and thoroughness of the finished product, and helps to increase the qualification of the staff, thus providing a professionally and financially satisfying working environment. In this race towards automation, support from the authorities is needed for the whole production environment.

A constant challenge we face in the industry is human resources. Both at the group and local level, LEONI is focused on providing optimal working conditions, and a fair salary package that rewards the effort, dedication, and loyalty of employees. We also promote development opportunities through a well-structured career plan tailored to everyone’s skills and commitment. We need to maintain and develop our existing staff by implementing strategies that deliver sustainable and high-performance results.

How will demand evolve amid the current geopolitical and economic uncertainty?

Our commitment to developing operations in Romania has been constant for over 20 years, during which time the local team has progressed and positioned Romania as a global pole of excellence in the production of wiring systems for the automotive industry.

Notably, the automotive industry plays a key role in the local economy, placing our country in an important position among countries with significant production of motor vehicles and components. For the future, we believe that a major impact on demand will be the support given to our industry to develop and provide the necessary human resources for the innovative projects we bring to Romania. A challenge for us is the lack of predictability in the economic environment, which affects both large companies and the ecosystem around us equally. LEONI Romania is supported by almost 1000 suppliers, and companies that have Romanian capital, and when we make business plans, in all cases we also consider the evolution of our partners.

Fortunately, LEONI Romania is no longer negatively influenced by the geopolitical situation now. However, we are mindful of rising utility prices, influenced by the conflagration in the Middle East. We are already seeing an upward trend in international transport prices. Although geographically the conflict is more distant, we foresee the same negative impact we experienced when the war in Ukraine started.

How does the manufacturing industry influence the transition to a green economy?

In today’s global landscape, the green economy and sustainability transcend rhetoric. They have become a moral compass and a shared global commitment. At LEONI, we have embraced this responsibility, imagining a future where green and resource-efficient mobility is not an aspiration but a universal reality. Our journey towards this vision is rooted in the belief that our products serve as the “nervous systems” of countless vehicles, uniting sustainability, and mobility in harmonious sync.

Our unwavering commitment to this cause led us to introduce the ReWire sustainability program in 2021, replacing our previous Agenda 2030. Within this framework, sustainability has been integrated into our corporate strategy, driving our progress towards a more sustainable future. We have 100% certified green energy in our factories in Romania, and we are looking to find solutions to replace gas with another source that is also 100% sustainable.

Notable improvements include a science-based CO₂ reduction pathway and alignment with the Corporate Due Diligence in Supply Chains Act.  More than half of the business developed in Romania is the production of wiring systems for electric, hybrid and hydrogen-fueled vehicles.