Mechanical Engineering and Automotive in Saxony
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AN INDUSTRIAL REGION WITH DEEP ROOTS
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Author and responsible for content / All information were compiled and published by: Stefan Schandera, Gigahertz Ventures GmbH (Dresden, Germany)
Saxony used to be one of Germany’s industrial heartlands. Mechanical engineering in Chemnitz, vehicle manufacturing in Zwickau, research in Dresden – this was not a periphery, it was the center of industrial development. Ukraine shares a similar legacy: once a major hub for locomotives, aircraft, and space technology – first under the Tsar, later as a key part of the Soviet Union. Two regions, both shaped by engineering – and by disruption.
Where Audi Was Born
In 1909, August Horch founded the Audi brand in the Saxon city of Zwickau. A few years later, Horch, Wanderer, and DKW merged into Auto Union – the predecessor of today’s Audi AG. During the Cold War, Saxony remained an industrial base. Zwickau produced the Trabant – a compact passenger car that became one of the most widely used vehicles in the Eastern Bloc. Meanwhile, mechanical engineering continued, supported by hands-on training at the technical universities in Dresden, Chemnitz, and Zwickau.
Photo: Horch 420 Cabrio (1931) by KarleHorn, via Wikimedia Commons, licensed under CC BY-SA 3.0 Unported.
Collapse and Recovery
After German reunification, much of this collapsed: factories closed, jobs were lost, entire industries vanished. But Saxony managed to rebuild – not from scratch, but from what remained: experience, skills, and infrastructure.
Back on the Map
Today, Volkswagen produces only electric vehicles in Zwickau – climate-neutral and at scale. BMW and Porsche manufacture in Leipzig. Over 1,000 specialized companies operate in the region: automation, precision parts, robotics. Research institutes like Fraunhofer IWU develop practical solutions for industrial production – not just concepts.
New Pressures, New Opportunities
Yet Saxony’s industry is once again under pressure – this time from decarbonization, digitalization, and global uncertainty. Energy costs, supply chains, workforce shortages, AI integration – these are not abstract trends but real challenges for Mittelstand and global players alike. Ukrainian tech companies can offer something valuable here: experience with rapid digital adaptation, resilience under crisis, and a growing base of engineers and IT talent. Joint projects – in automation, predictive maintenance, simulation, lightweight construction – are not charity, but shared strategic investment.
Why This Matters for Ukraine
Ukraine is not starting from zero. It has deep industrial roots, strong engineering education, and a growing digital and tech sector. What’s missing in many places is production infrastructure – not ideas or skills.
Saxony offers something complementary: factories, machines, process experience. What Ukrainian companies bring – especially in software, automation, and adaptive problem-solving – can fill real gaps. This is not about aid or reconstruction slogans. It’s about building things together.
Joint ventures, supplier relationships, pilot projects in manufacturing – these are realistic next steps. Companies on both sides stand to gain: Ukraine gets access to advanced production environments; Saxony gets access to flexible, tech-savvy talent and fast iteration.
This is industrial cooperation where it counts – at machine level, not on panels.