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BIONADE GOES WESTGerman Refreshment Drink Enters the American Market

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T R A N S A T L A N T I C T I C K E RGerman American Company News 4

S P O T L I G H T SBionade Goes West 6

NRW Invest Opens Office in Chicago 9

Green Building Innovation Seminar:Training the Future 11

New Online Tool: www.germancompanies.us 13

Survey of German Firms: Facing Economic Realities 14

B U S I N E S S T O O L SNew CFIUS Regulations: Will investing in the United States become more difficult? 16

S P E C I A L R E P O R TAutomotive Special Report: Opportunities in Adverse Times 19

G A T O N - S I T EDreamCatchers Series: Part 9 Bianca Reich - Reich Realty International 24

M E M B E R P R O F I L EThe Ingenics Charta - Achieving Top Efficiency 28

F R O M T H E R E G I O N SGACC Highlights Review: October 2008 30

E V E N T C A L E N D A RFuture Events, Delegations & Trade Fairs 33

B O A R D T A L KDr. Michael Blank 34

I N S I G H T

Bringing a completely unknown German soft drink to “Coca-Cola country” is coura-

geous. Bionade, the world’s first non-alcoholic organically produced refreshment drink

(don’t call it lemonade!) has just entered the U.S.-market; a bottling plant in Iowa will

start operations next year.

How are the German companies in the U.S. dealing with the

financial crisis, – has it changed their strategy and outlook?

Droege & Company has asked over 300 decision makers for

their take on the current situation.

The economic crisis can also bring opportunities for German

automotive suppliers. This months Special Report on the auto-

motive industry - “Beyond the Storm” examines this industry seg-

ment, particularly in the Midwestern and Southern United States.

German Green Architecture is taking a strong foothold in the U.S. – rising energy costs

and increasing environmental standards are creating a higher demand for energy

efficient architecture. Supported by the German Ministry of Economics and

Technology, the GACC Midwest organized a “Green Building Innovation” seminars

at four Midwestern universities.

Nicola Michels - Editor, New York

[email protected]

C O N T E N T S

Exclusive cartoon by Heiko Sakurai www.sakurai-cartoons.de

GC_Ticker_206x276_1207_RZ.indd 1 18.12.2007 11:37:43 Uhr


NexHorizons chooses Blankom USAfor digital headend transition

NexHorizon will use BlankomUSA as its exclusive digital head-end provider for systems it willacquire in the future. NexHorizonrecently announced that it hadentered into a Letter of Intent toacquire Phoenix Communica-tions, Inc. of Michigan. That dealis expected to close in the firstquarter of 2009. Blankom USA isthe U.S. arm of Blankom Anten-nentechnik GmbH, Germany, oneof the world's leading providers ofturnkey headend solutions withmore than 10,000 installed sys-tems worldwide. • MarketWatch

German network vendor Ipoque opens U.S. headquarters

Ipoque, a leading Europeanprovider of Internet traffic man-agement solutions, announcedthat it has launched U.S. opera-tions with headquarters locatedin Londonderry, New Hamp-shire. The company alsoannounced the appointment ofJim Peschek as Vice President of

Sales, North America, to head thecompany’s newly opened U.S.office. Ipoque’s technology allowsorganizations to effectively moni-tor, shape, optimize, limit andcontrol bandwidth-demandingapplications. Founded in Leipzig,Germany, ipoque is the leadingEuropean provider of deep pack-et inspection (DPI) solutions forInternet traffic management andanalysis. • PRWeb

ASU, APS join TUV Rheinland in solar testing

Arizona State University, ArizonaPublic Service and an internation-al solar company are merging theirresources to create a new solar-testing joint venture in Tempe.The new business is being formedby TUV Rheinland Group, a $1.5billion corporation based in Ger-many, and ASU’s PhotovoltaicTesting Laboratory. TUV Rhein-land Group, which has more than12,500 employees and facilities inmore than 62 countries, primarilytests and certifies solar-energyequipment. The partners willform a new company called TUV

Rheinland PTL LLC, which willestablish a photovoltaic testingfacility in a 40,000-square footbuilding in a business park onRoosevelt Street south of Broad-way in Tempe. • East Valley Tribune

German Kontron buys Intel’s rackmount server line

Embedded computer manufacturerKontron AG (Eching, Germany)says he has signed an agreementwith Intel to take over its commu-nications rackmount serveractivities. The agreement refers to1U and 2U carrier-grade rack-mount IP security server productswith expected 2009 sales of about$40 million. It includes R&D andas support facilities in Columbia,South Carolina and manufacturingactivities in Penang, Malaysia. Thegroup currently has a total head-count of about 70 persons. • EE Times

Smart Fuel Cell opens U.S. office in Atlanta

SFC Smart Fuel Cell AG, a leadingprovider of fuel cell technologiesfor mobile and off-grid powerapplications, announced itsexpansion into the United Stateswith the opening of a sales andtechnical service office in Atlantato meet growing demand for itsfuel cell products for the defenseand industrial markets. SFC SmartFuel Cell AG is market leader infuel cell technologies for mobileand off-grid power applicationsserving the leisure, industrial anddefense markets. As one of Ger-many’s technology pioneers, SFC

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has won numerous innovationawards. • MarketWatch

Allianz invests $2.5 billion in Hartford Financial

Hartford Financial ServicesGroup, Inc. said that Germany’sAllianz SE will invest $2.5 billionin the U.S. life and propertyinsurer, sending Hartford sharesup as much as 20 percent, even asit cut its quarterly dividend andforecast losses. Allianz will alsobuy $1.75 billion in 10 percentjunior subordinated debentures.The debentures are callable at parbeginning 10 years after issuanceby Hartford. • guardian.co.uk

German Mann+Hummel sells U.S. subsidiary

As part of its targeted growth strat-egy for North America,Mann+Hummel, developmentpartner and original equipmentsupplier to the international auto-motive and mechanical engineeringindustries, sold its U.S. subsidiary,Universal Dynamics to Piovan ofItaly. Universal Dynamics is one ofthe leading American manufactur-ers of equipment for the plasticsprocessing industry, recording salesof approximately US$27.1 millionin 2007 and employing 120 people.• MarketWatch

Lufthansa Technik expands capacity in Tulsa, OK

At a press conference chairmanAugust-Wilhelm Henningsen wentinto some detail regarding

Lufthansa Technik’s recent growthin the U.S. and Switzerland. Bizjetin Tulsa, Okla., a subsidiary ofLufthansa Technik, is now expand-ing its capacity to includenarrowbody executive/ VIP interi-or work. A new facility there willbegin outfitting Airbus A318 Eliteswith individually customized cab-ins beginning next year, under thecertification authorities granted tothe parent company. • AINonline

Drahtzug Stein Holding to open plant in Craven, NC

German manufacturer DrahtzugStein Holding Company will opena plant employing between 80 and100 people in New Bern, NC inJune 2009. Company PresidentWolfgang Stein said that the com-pany, which has produceddishwasher baskets internationallyfor BSH Home Appliances for 40years, will invest $16 to $18 mil-lion to begin U.S. productionhere. The company plans to growto full capacity manufacture of twomillion polyamide-covered steeldishwasher baskets a year to meetfuture BSH domestic demand.• EncToday.com

Sony completes deal to buy out Bertelsmann

Sony has completed a take-over ofthe Sony BMG music companywhich it had previously sharedwith Bertelsmann. Sony paid lessthan 1 billion euros to buy outBertelsmann. SMEI is expected tohave annual revenues of 3 billioneuros ($4 billion) and to employ a

staff of around 6,000. Bertels-mann, based in Guetersloh,Germany, said it would keep theBMG brand and gear its remain-ing music business to music rightsmanagement, representing artistsand authors mainly in Europe.BMG Rights Management wouldretain “selected European musiccatalogues” with the work of morethan 200 artists which had beenmanaged by the joint venturewith Sony. • DW-World.de GAT

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At a time, when organic prod-ucts are as desirable in theUnited States as in Ger-

many, a small German companyenters the U.S.-market with itsorganically manufactured non-alcoholic refreshment drinksunder the Bionade trademark.

In 1995, Dieter Leipold, thenmaster brewer of the Ostheim’sPrivatbrauerei Peter, invented ahealthy soft drink using beer-brewing principles.

The first case shipped in 1995,but lean years followed as thecompany unsuccessfully tried tomarket Bionade solely on itshealth claims. The turning pointcame in 1999, when marketingexpert Wolfgang Blum arrived.He gave Bionade a new packagingdesign - a slick retro blue, whiteand red logo, and a new strategy,branding it as a hip lifestyle drinkthat happened to be healthy.

With no budget for television orprint advertising, the companyneeded to get everyone else - espe-cially the media - to spread theword, Blum says. So Bionadesponsored hundreds of sporting,cultural and kid’s events acrossGermany. Finally, sales picked up.

After this great success through-out Europe, Bionade decided toenter the U.S.-market in 2008.Together with ALB – Gold Teig-waren GmbH, Bionade plans tobuild a 121,500 square-foot pro-duction facility, sitting on a65-acre site in Amana, Iowa. Itwill include a small restaurantand visitor center. The $50 mil-lion project will create 99 newjobs in production and manage-ment, as well as approximately 25new positions for the restaurantand visitor center. The environ-mentally green facility will beconstructed to higher standardsthan the LEED Green BuildingRating System™, and will be oneof the first of its kind in the Unit-ed States. The facility will besurrounded by an organically cul-tivated herb garden, with thepurpose of educating the cus-tomer and consumer aboutingredients such as herbs andspices used in ALB-Gold’s noodleproducts, or fruits such as elder-berries used in the Bionadebeverage. To suit American tastes,Bionade is contemplating addingnew flavors, like cranberry.

Now, of course the major hur-dle is just getting the drink onstore shelves.

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Bionade Goes WestBionade, the world’s first organic non-alcoholic refreshment drink enters the American market.


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>>

For years this 40-year old man-ager has been the head of thefamily company operating outof Ostheim in the Rhoen. In2007 Kowalsky won theYear’s Outstanding Executiveof a Mid-Sized Companyaward. It is one of many hon-ors and prizes he has won.Here he discusses his plans forthe American market.

GAT: This year you have startedto do business in the UnitedStates. How far along are you?

KOWALSKY: A few monthsago we received the approvalsfrom U.S. authorities. Theprocess cost us a lot of time andan unbelievable amount ofmoney especially on account ofthe lawyers needed for the permitprocedures. We were examinedfrom head to toe. It turned outthat Bionade® is really not a bioweapon. The Americans had aninconceivably difficult time witha new type of beverage. Theycouldn’t imagine that such athing exists. To some civil ser-vants at these authorities any-thing new is their biggest enemybecause what is new is not cov-ered by regulations. They fearhaving to act and making deci-sions on their own initiative.Now we have all that behind us.In April started bottling to fillthe first containers which weredelivered in the United Statestwo weeks later.

GAT: What strategy have youadopted for the U.S. market?

KOWALSKY: It is completelydifferent than ours here, if merelyfor the fact that the country ischaracterized by entirely differentdimensions. In order to get a feel-ing for the market we are first sell-ing the product in San Francisco,New York and also in Los Angeles.What are the attitudes taken byAmericans? What do and don’tthey understand? We have learnedthat the word fermentation isfraught with pitfalls becauseAmericans always associate fer-mentation with alcohol. But wehave sensed a demand. Our associ-ates in the United States receivescores of e-mail inquiries.However we have to take the com-petition very seriously. Companieslike Coca Cola or Pepsi are deeplyrooted in the public’s conscious-ness. They maintain strong linksto university campuses andschools and enjoy a position of

power that is hardly imaginablehere in Germany.

GAT: But apparently you areconfident enough to haveplanned a production plant onthe other side of the Atlantic.

KOWALSKY: Correct. Freightcharges are so high and that is idi-otic considering that it does nottake long for a local bottling plantto make sense. After all, Bionadeconsists mostly of water. The bot-tling plant in Iowa is to start oper-ations at the end of 2009. Therequired concentrate will comefrom us in Ostheim. We are eagerto reach a viable volume as soon aspossible, but nevertheless we wantthe business to grow organically. Itis going to be challenging.

GAT: At last count Bionade grewby 300 percent from year to year.In 2007 you were relieved thatthere was practically no summerweather and therefore managedto keep pace with demand.What’s ahead?

KOWALSKY: The years of 300percent gains are behind us. Thereis nothing wrong with that, yetyou have to get used to it. You getused to unusual things very quick-ly. This year we expect a 100 per-cent increase in volume.

Interview with Peter KowalskyHead of Bionade

Translated from “MainFranken”,a magazine of the “MainPost”,4/08 by Angela Jacobsen [email protected]


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PRIVATBRAUEREI PETER KGEstablished: 1827Employees 92Part time: ca. 7

Sales volume: 5 million bottles per year

Product range/regional:RHÖN PILS

Product range/national: RHÖNER (organic specialty beer) Premium Pils, Dark beer, Flavored beers Rote Holle and Gelbe Lili made with BIONADE Elderberry and Lycheerefreshment drinks.

BIONADE International GmbHEstablished: 1995Employees: 7

Sales volume: 3 million bottles per year

Product range/international: BIONADE Elderberry, Lychee, Herbs and Ginger-Orange

Export countries: South Europe, West Europe, North Europe, USA, Japan

BIONADE GmbHEstablished: 2002Employees: 57Part time: 30

Sales Volume: 200 million bottles per year

Product range/national: BIONADEElderberry, Lychee, Herbs and Ginger-OrangeBIONADE Aktiv (mineral drink for athletes)

Distribution channels: Health food stores,LEH, beverage wholesale and retail, drugstores, restaurants, hotels, community catering (schools,authorities, company cafeterias), beverage vending machines

Bionade Corporation is a young,innovative and privately ownedGerman company producing anddistributing organically manufac-tured non-alcoholic refreshmentdrinks under the Bionade trade-mark. Borrowing from age-oldbrewing techniques, Bionade isproduced through a completelyorganic fermentation process.Based in Ostheim, Germany, theBionade Company is situated inthe Bavarian section in theBiosphere Reserve “Hohe Rhön”.The company is an offshoot ofthe local Private Brewery, Peter,www.rhoenpils.com.

ABOUT BIONADE GMBH

www.bionade.com

GAT


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The aim of the new office is thetargeted acquisition of investorsin North America, and in partic-ular in the Chicago MetropolitanArea. The economic region sur-rounding the USA’s third-largestcity offers a differentiated anddiverse economic structure withnumerous internationally oper-ating companies. The office’sactivities will be to intensify thedirect contacts to the economy,federations, institutions, cham-bers, and politicians in order toinform them about the strengthsof NRW as a business location.

GAT: NRW seems to be on a glob-al quest of expansion; as recently asAugust you opened a new office inIndia, and now in the beginning ofOctober a new one in the U.S.?

BAGANZ: We are already themost important investment loca-tion in Germany for Americancompanies. There are actuallyaround 600 US firms in theRhine and Ruhr region, includ-ing such renowned companies asFord, 3M, UPS, QVC, USG orthe Aptar Group, but there arestill excellent opportunities formore growth. The United States

accounts for the highest share offoreign direct investments inNRW (approx. 16.6 billionEuros). Trade between the USAand North Rhine-Westphaliatotaled around 15 billion Eurosin 2007 and has grown by about30 percent over the last ten years.

GAT: Why did you chooseChicago to set up an office?

BAGANZ: The Midwest is apower-house just like us: NRW isthe favorite investment region forthe United States, conversely, theMidwest is also Germany’s num-ber one for setting up shop.Michigan alone always ranks 1stin the nation in the number ofmanufacturing jobs created byGerman subsidiaries. Also,from a structural point ofview, the entire Midwestoffers similar clusters of man-ufacturing and service sectorsthat we find in our region.

GAT: Are you worried aboutthe current economic climate onboth sides of the Atlantic?

BAGANZ: This crisis is obvious-ly a big challenge to all of us. Yet

we believe that there is plenty ofpotential slumbering here whichwill benefit both economies. As Isaid, the U.S. is currently alreadyone of the most important trad-ing partners for us. NRW isGermany’s economically largestfederal state creating 22% of theentire German GDP. By openingour office at this moment in time,we are demonstrating our confi-dence in the American marketand at the same time want tobring a new dynamism to oureconomic relations.

www.nrwinvest.llc.com

GAT

Office opens in ChicagoNew state representation aims to win U.S.investors for North Rhine-Westphalia (NRW)

NRW.INVEST

(NORTH AMERICA) LLC

Economic Development Agency

of the German State of North Rhine-Westphalia

Dr. John D. Gatto, President

150 North Michigan Avenue, Suite 2940

Chicago, IL 60601, USA

Tel.: 312 629 7500 • Fax: 312 629 7501

e-mail: [email protected]

Dr. Jens Baganz, State Secretaryfor Economic Affairs and Energy, NRW


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From September 16-19, 2008 aselect group of leading expertsfrom Germany and the US

presented a week of “GreenBuilding Innovation Seminars” atleading Midwest universities,including the University of Illi-nois at Urbana-Champaign, theUniversity of Illinois at Chicago,the Graduate School at School ofthe Art Institute in Chicago, andthe School of Architecture andUrban Planning at the Universityof Wisconsin in Milwaukee.Overall, over 600 enthusiasticstudents and professors joined thearchitectural experts for an inter-esting exchange of ideas in theseeducational institutions, withstanding-room only crowds at 3of the 4 locations. This impressiveattendance illustrates the curiosity

and interest U.S. stu-

dents have about Germany’sadvancement in green technologyand energy efficient architecture.

These “Green Building Innova-tion Seminars” were sponsoredby the German Ministry of Eco-nomics and Technology in orderto inspire the next generation ofarchitects, construction engineersand facilities managers. The Ger-man American Chamber ofCommerce of the Midwest, aspart of their “Training theFuture” efforts, presented devel-opments of innovative Germangreen building technologies.

Keynote speakers included DavidCook, Partner at BehnischArchitekten in Stuttgart, Ger-many and Dr. Ing. RobertHimmler, Managing Partner at

energydesign asia in Stuttgart,Germany. Both experts stressedthe importance of the buildingenvelope and climate modelingin terms of energy efficiency andpromoted an open dialoguebetween (climate) engineers andarchitects for building projects.

Additional speakers includedGreg Thomson, Assis-

Training the FutureStudent Architects Flock to Presentations by German Green Building Experts

Written by Daniela Daus and Janka Pieper

Packed Auditorium at University of Wisconsin in Milwaukee

>>


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S P O T L I G H T S

tant Professor at the School ofArchitecture and Urban Planningat the University of Wisconsin inMilwaukee, who spoke aboutUWM’s Carbon Neutral HouseProject for the renowned SolarDecathlon competition, whichwas won by Darmstadt Universityin 2007. 20 universities from allover the world take part in thiscompetition organized by theU.S. Department of Energy todesign, construct and operate themost attractive and energy-effi-cient solar-powered house. DavidWhite from Transsolar in NewYork discussed the company’srecent climate engineering proj-ects on the East Coast and MarkFrisch from Solomon CordwellBuenz presented their joint proj-ect, Loyola InformationCommons at Loyola University inChicago: a digital library withoutbooks. The building is a fascinat-ing example of outstandingGerman climate engineeringfacilitated by Transsolar, in com-bination with appealing andtransparent architecture, allowingfor a reduction of its ongoingenergy consumption of morethan 50%. Rico Cedro, Asso-ciate Principal and Directorof Sustainable Design atKrueck & Sexton, spokeabout the process ofplanning the architec-turally unique SpertusInstitute for JewishStudies in Chicago,with one of its majorgoals being bringing natu-ral light even to the coreparts of the building.

The speakers also had in-depthdiscussions with professors of theindividual schools and toured sig-nificant new projects. Many ofthem have incorporated Germantechnology and expertise, mostnotably a low income housingproject, and a larger house cur-rently under construction, bothbuilt to passive house standards.The next Passive House InstituteUS project will demonstrate pas-sive house constructiontechniques in a 48-unit projectfor low income housing, also inUrbana, Illinois. Speakers andprofessors also toured the LoyolaInformation Commons at LoyolaUniversity in Chicago, which twoof the speakers were involved withduring its planning and construc-tion process, as well as the SpertusInstitute of Jewish Studies indowntown Chicago. The SpertusInstitute, currently in the processof receiving LEED silver, servesnot only as a museum but also asan educational institution, as wellas a cultural center.

To download presentations

and watch videos of some of the speakers

from the seminars, please visit www.gaccom.org.

For further information, please contact

Mark Tomkins, Director of Consulting Services

at the German American Chamber of Commerce

of the Midwest at [email protected]

or call 312-494-2172.

Natural Light inside the Spertus Institute of Jewish Studies in Chicago

GAT


S P O T L I G H T S

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For over 30 Years the GermanAmerican Chamber of Com-merce has been publishing its

company directory “Subsidiariesof German Firms” on an annualbasis. This publication hasbecome a classical Who’s Who ofGerman-American business rela-tions. It lists over 3,500 HQs andbranch offices of German firms inthe United States, as well as theirparent companies in Germany -with detailed information such astop executives, email-addresses,number of employees, turnoverand NAICS classification.

Now, three decades later, theonline version is finally launched:www.germancompanies.usenables listed subsidiariesto update their entriesonline, add informationsuch as company logosor presentations. Atthe same time, thewebsite enables visitorsto perform detailedsearches and downloadsto excel. Visitors can regis-ter on a basic or unlimitedlevel, depending how muchdata is requested.

New online:www.germancompanies.us3,500 German Subsidiariesat your fingertips

GAT

For further information or banner advertising please contact your nearest

German American Chamber of Commerce:

GACC South Atlanta Office: Stefanie Jehlitschka

404.586.6803 • [email protected]

GACC Midwest Chicago Office: Janka Pieper


GACC New York Office: Nicola Michels



Impacted by the economicdownturn, German compa-nies in the United States are

reacting by taking measures tocope with a long-term crisis.Most are opting for cost-cut-ting measures. That, insummary, is the result of aquick survey of more than 300decision-makers in Germancompanies in the UnitedStates. The poll was conductedby Droege & Comp., a man-agement consultancy.

Responding to the new economic realities

“The financial crisis has affectednumerous German companiesoperating in the new economicclimate that has beset the UnitedStates,” according to Dr. BjörnRöper, Partner in the New Yorkoffice of Droege. His evaluationis supported by the replies to thesurvey. More than 70% of therespondents reported feeling theeffects of the downturn already;40% indicated being strongly oreven severely affected. More than

half of the firms questioned not-ed that demand is down ten ormore percent, while a fifth of thesurvey participants reported even15% or more declines. Onlyslightly more than a fourth of thecompanies surveyed have notexperienced lower sales.

The vast majority of the polledmanagers are expecting the currentfinancial crisis to spread rapidlythroughout the economy; 86%foresaw deterioration of consumermarkets, and 76% predicted post-ponements in plant and

equipment investments. In addi-tion, more than three-quarters ofall those polled (76%) expectedincreases in unemployment.

Long-term structural crisis

“We have to be prepared to copewith a long-term U.S. businesscrisis, requiring painful adjust-ments,” says Lars Knorn, also aNew York-based Droege Partner.His assessment is reflected in theresults of the survey. 76% ofthose questioned expect the

financial crisis to last more than ayear. The poll also showed that areturn to stable growth patternsmay be delayed even longer.Almost four of five respondentsbelieve that it will be at least oneyear before the U.S. will resumestable expansion (defined as morethan 2% economic growth). Everysecond respondent believed that itwill take 12 to 18 months toregain the momentum. An evenmore pessimistic attitude of thevagaries of U.S. economic devel-opment is seen by another thirdof the poll participants who

S P O T L I G H T S

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German Subsidiaries in the U.S.Facing Economic Realities

Summary of replies to a survey of German decision-makersin the United States by Droege & Comp.

• German companies in the UnitedStates, already impacted bybusiness downturn, prepare forlong-term U.S. economic crisis

• Primary reaction: adoptingcost-cutting measures

• More than 50% of surveyrespondents see concurrentopportunity for moving ahead aggressively

Translated by Angela Jacobsen [email protected]


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expect an improvementin the U.S. economic cli-mate in two or more years.

Focusing on reducing overhead costs

How are the companies reacting tothe economic crisis and the result-ing pressures on margins? Themajority of companies anticipatethe need to adopt operationalmeasures in reaction to marketconditions. Particular attention isbeing paid to reducing overheadcosts (62%). Moreover, the pollindicates many survey participantsare looking for potential savings inpurchasing as well as in short-termadjustments to product and serviceofferings. Such core measures areto be accompanied by price reduc-tions as well as increases (31% and24%, respectively) and by short-term inventory reductions (21% ofthose questioned).

Two-thirds of the companies con-sider the financial crisis a threat,but more than one-third sawopportunity in the current eco-nomic climate. The poll identifiedtwo market segments which couldrealistically benefit from the crisis:renewable energy which, due to itshigh growth rates, is likely toattract capital and emerge fromthe crisis as a winner. Further-more, the lower propensity ofinvestors to take risks should –experience shows – prove to be aboon to stable businesses likepharmaceuticals and foods.

Above all, the crisis is being seen asan opportunity by companies

which, thanks to their strong com-petitive position, are positioned todeal with growing pres-sures on prices andmargins. The survey alsoreveals that com-

panies providing products andservices that help customers toovercome the crisis willstand to benefit fromthe current situation.

Three different types of attitudes prevail

Basically, Germancompanies in the Unit-ed States take three differentattitudes toward combating the cri-sis: Half of the firms (52%),classified as “attackers”, are dealingaggressively with the predicamentby being proactive, capitalizing onopportunities and seeking to comeout of the upheaval in a strongerposition. Another 38%, catego-rized as “defenders”, takelargely a wait-and-see attitudein an effort to get a clearer pic-ture of the situation beforeimplementing any remedialmeasures. To tackle theupheaval, another 10% of therespondents are putting “substi-tutes” in place and have begun toshrink their U.S. involvement.

Which of the 3 following response-types best describesyour company’s reaction to the current crisis?

• We are an “aggressor” and try to seizeall opportunities that the crisis brings up

• We stand at the side lines and observe as the crisis unfolds

• We have started to retreat

9.5%

52.4%38.1%

GAT

How are others in your industry reacting to the current crisis?

• Price cuts• Price increases• Short-term sales of inventory• Adjustments to product and service portfolio• Cost-cutting via purchasing optimization• Cost-cutting through overhead reduction• Other16.7%

61.9%40.5%33.3%21.4%23.8%

31%

How are others in your industry reacting to the current crisis?

• Slowing consumption• Increasing inflation• Increasing unemployment• Delay in capital investments• I do not see any effect on the broader economy• Other11.9%

4.8%

78.6%76.2%26.2%85.7%

Droege & Comp.

is the 2nd largest management

consultancy of German origin.

New York Contact: Droege & Comp. Inc.,

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These days, foreign companiesintent on making a signifi-cant investment in the

United States will have to be a bitmore patient. The newly-issuedregulations governing approvalfor foreign investments havespurred intensive discussions inWashington. Many foreign min-istries, companies, law firms andadvocacy groups have weighed inwith their arguments and asked

for changes.We will

have to wait how the U.S. Treas-ury, the vested authority, reacts.

The discussion has been prompt-ed by a new investment lawenacted in summer 2007 by theBush government. The ForeignInvestment and National Securi-ty Act of 2007 (FINSA 2007)which became law on October26 of that year authorizes thepresident of the United States toreview foreign investments on acase-by-case basis and disallowthem if these projects lead to for-

eign control and couldthreaten the security of

the United States.FINSA is not veryspecific on someimportant elements

of the new regula-tions; for instance

it fails to definewhat is meant

by the presence ofa “foreign invest-

ment” or theacquisition of “foreign con-

trol” over an American company.The government’s CFIUS – the

Will investing in the UnitedStates become more difficult?New CFIUS regulations for approval of foreign investments

1 6

B U S I N E S S T O O L S

by Alexander v. Hopffgarten

Legal Counselor, BFAI

German Office for Foreign Trade

Translation by Angela Jacobson Associates • [email protected]


www.bfai.de


B U S I N E S S T O O L S

Committee on Foreign Invest-ment in the United States - wastherefore charged to prepareappropriate regulations. Theywere published on April 23,2008 in draft form.

However, public hearings on theRegulations Pertaining to Merg-ers, Acquisitions and Takeoversby Foreign Persons, (“Regula-tions”) show that the affectedcompanies require still moreclarity in order to better assessthe prospects for an investmentproject in the United States.

Affected foreign investments

Above all, foreign companies willhave to know under what cir-cumstances they can be affectedby the new approval regulations.Generally FINSA 2007 appliesonly to investments which repre-sent a “covered transaction”. Thatincludes any merger, acquisitionor any form of takeover whichcan give a foreign person controlover a U.S. enterprise (§ 2 (a)(3)FINSA 2007).

“Greenfield” investments continue to be welcomed

The new regulations are unlikelyto affect German companiesintending to erect new produc-tion facilities on their own orwanting to establish new enter-prises. The term “covered

transaction” continues to excludeso-called greenfield investments.

When do foreign companies exercise control?

The need formore specificsabout “foreigncontrol” as aresult of aninvestment rep-resents oneproblem arisingout of the plannedregulations. Accordingto business associations andattorneys the regulations leaveconsiderable room for improve-ments. In § 800.203 (a) theregulations define “control” asthe direct or indirect ability of aforeign investor to "determine,direct or decide important mat-ters” affecting a U.S. business.Therefore the regulations define“control” by foreign investorsstrictly in terms of function.Numerical voting rights or thesize of the participation by for-eign investors are essentiallyirrelevant. In accordance with §800.203 (c) the regulationstake account of these circum-stances only in certain caseswhereby, as an exception, cer-tain minority participations arenot to be considered indicativeof the exercise of foreign con-trol. It is however still subject toquestion to what extent these

Alexander v. HopffgartenLegal Counselor, BFAI -German Office for Foreign [email protected]

AB

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>>

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exceptions will play an actualrole in practice.

More information required for investigation

The proposed regulations willrequire the submission of sub-stantially more information fora “covered transaction” to theCFIUS. Even though the regu-lations do not propose a blanket

obligation for disclosures, com-panies that consider themselvessubject to the provisions aregenerally expected to submit a“voluntary notice” about theirinvestment plans to the govern-ment investment committee.That applies as much to the for-eign company as to thedomestic enterprise targeted bythe planned foreign investment.In line with § 800.402 of theregulations the voluntary noticeby the foreign company mustreveal details, among others,about the type of transactionand business plans.

A properly submitted noticeleads to a review for whichCFIUS is accorded 30 days toarrive at a decision. During thisperiod CFIUS checks whetherthe investment will bring aboutcontrol of a U.S. company andtherefore could qualify as athreat to the security of theUnited States. If the answer isnegative, the investment can as arule be made as planned; if not,a further investigation is under-taken which is to last no longerthan 45 days. In some respectsthe planned regulations repre-sent a tightening of formerinvestment regulations.

German companies wanting toinvest in sensitive areas likespace, chemicals, semi-conduc-tor, telecommunication orenergy technologies will have toanticipate higher expenses forevaluations and consultations.It is the only way to minimizethe risks of subsequent unfore-seen hurdles.

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GAT


For many months now,negative headlinesabout the state of the

automotive industry have beenhitting the newsstands all overthe U.S. Layoffs, plant closings,and a decrease in sales are the bigheadlines that have caught ourattention lately. Whether it’sGeneral Motor’s, Ford’s orChrysler’s massive loss in stockvalue, their combined layoffs ofworkers and accelerated plantclosings – reminders of the direcondition of the automotiveindustry reach us daily.

It is undoubtedly a very difficulttime for the industry. Rising fuelprices caused radical shifts in con-sumer demand. Skyrocketing rawmaterial cost, and stringent emis-sions standards had already caused

a slowdown. The credit crisisand resulting economic uncertain-ty have contributed to the creationof a “perfect storm” in the automo-tive industry. Most headlines havefocused on the Original Equip-ment Manufacturers (OEM), butthe network of automotive suppli-ers has been hit as well. Thesesuppliers affect our economy morethan most people realize.

Until the end of the 20th centu-ry, U.S. automakers assembledlarge numbers of individual partsused for their cars directly on thefinal assembly line. This haschanged. The increasing com-plexity of the vehicles means thatin many cases it is more cost-effi-cient for OEMs to buy complete

How the Crisis in the U.S. Automotive Industry Hides

Future Opportunities for German Suppliers


1 9


Written by Virginia Attaway, Janka Pieper and Stefanie Jehlitschka

Beyond the Storm

>>


2 0



assemblies from their suppliers,the so-called “Tier 1” suppliers.These suppliers buy sub-assem-blies from their own suppliers,called Tier 2, who buy from theTier 3 suppliers. Because of thisshift, thousands of suppliersmake up the bulk of the automo-tive industry, as opposed to thehandful of OEMs like Ford,General Motors (GM), VW andToyota who make headlines.Automotive suppliers today makeup 78.3% of the work force inthe industry, according to Dr.Thomas Klier, senior economistat the Federal Reserve Bank ofChicago. In addition, these sup-pliers, who operate over 3,000plants in the U.S., provide 70%of the added value of vehicles. AsDr. Klier puts it, the answer tothe question, “Who really madeyour car?” is: The suppliers.

More and more of these suppliersare foreign-based. According toAutomotive News, of the largest150 suppliers of original equip-ment in North America, in 2007only 59 were U.S.-owned, downfrom 108 in 1994. Just as suppli-ers headquartered in the U.S. arealso producing overseas to be

closer to their customers, suppli-ers with overseas headquarters areproducing here. The trend willcontinue, according to Dr. Klier,as “more of the parts made inNorth America and vehiclesassembled in North America willbe produced by corporationswith global headquarters outsideof the continent”. OEMs like towork with suppliers with globalfootprints, so that they cansource parts from the same com-panies for use in Europe, NorthAmerica, and Asia. This changein the American automotiveindustry has been extremely ben-eficial for German suppliersactive in the U.S.

Germany has long been strong inthe U.S. automotive market, andthis trend continues in the sup-plier sector. In 2007, Germanyranked 5th in automotive partsimports, after Canada, Mexico,Japan, and China. Well-knownGerman suppliers to the U.S.include Behr, Bosch, Brose Con-tinental, MAHLE, Webasto, andZF Friedrichshafen, just to namea few. In addition to serving U.S.and German OEMs in NorthAmerica, increased U.S. produc-

DEF IN I T ION OF T ERMS :

OEM: Original Equipment Manufacturer,such as Volkswagen, General Motors,Toyota, etc.

Suppliers: Companies that produces parts,assemblies, and entire systems for vehicles.“Tier 1” suppliers sell directly to the OEMs.Some of the largest German Tier 1s include Continental, Robert Bosch, and ZFFriedrichshafen. Tier 2 suppliers sell theirparts and assemblies to the Tier 1s, and buy the components they need from the Tier 3 suppliers.

Powertrain: All of a vehicle’s componentsthat produce power and transmit it to thewheels, including engine, transmission, and driveshaft.

Diesel: Can refer to a fuel or the enginethat burns it, as well as the vehicle that it powers.

Hybrid: A car or truck with two differentpower sources. The Toyota Prius is probablythe best-known hybrid today. Like hybridsavailable from other manufacturers, it usesa gasoline engine plus an electric motorpowered by batteries. Hybrids of the futuremay be any of a number of combinations of power sources.



tion from Asian OEMs like Hon-da, Nissan, and Hyundai meansthat German automotive suppli-ers can seize the opportunity forlong-term contracts with Asianmanufacturers as well.

The current economic downturnhas sent shockwaves through theautomotive industry from theOEMs down through all the“Tiers”. No supplier, even theones with a global footprint, isimmune from the consequences.However, those who can survivethese troubled times, may seegreat opportunities in the future.This might be particular true forGerman suppliers, as the US auto-motive industry begins to followthe trends already set in Europe.

As we have seen, the demand forSUVs and trucks has plummetedin 2008, which coincides with arise in demand for small cars. Thefamous German miniature car,the Smart ForTwo, virtually soldout even before the first car rolledof the ship, while sales of the Eng-lish Mini Cooper, owned by theBMW Group, are up 34% overlast year. Honda and Toyota’ssmall cars have also done well,especially compared to the rest ofthe market. These small cars havesmaller engines and higher fuelefficiency, and the trend isencouraged by stricter fuel econo-my standards as well as the risingprice of gas. German and Euro-pean manufacturers have beenfocusing on smaller, more effi-cient cars for a long time, andtheir expertise is in demand, espe-cially for highly-efficientpowertrains (engines and trans-missions, and their components). Diesel is another area where

European/German automotivetechnology can excel. Most U.S.consumers remember the loud,dirty diesels of the 1970s, butclean diesel is a reality, as Euro-peans have known for years.Until now, no diesel models inthe U.S. met emission levelsrequired by California, New Yorkand six other U.S. states, so thatthey could not be sold in thesestates. Volkswagen’s and Mer-cedes-Benz’ new “50-state cleandiesels” are the first to have emis-sions low enough to be sold in all50 states. In fact, the InternalRevenue Service (IRS) hasapproved them as “lean burn”technology, so buyers will get atax credit for having a fuel-effi-cient vehicle – the first taxcredits offered to non-hybrids. BMWalso has plans

to launch 50-state diesels thisyear. Just as diesel fuel is differentthan gasoline, the engines thatburn it are different as well, andso this shift towards diesel tech-nology will open doors forsuppliers of all kinds of diesel-related components.

Companies that are not part ofthe traditional supply chain,including service providers like T-Systems or German softwaremaker dSPACE, can also benefitfrom the current change in theautomotive industry as well. IAVAutomotive Engineering Inc., a

2 1


>>


subsidiary of Germany-basedIAV GmbH, provides engine andpowertrain testing services, aswell as gasoline, diesel, hybridand advanced engine engineering

and development services. IAVemploys over 100 people at itscurrent North American head-quarters and tech center in AnnArbor, MI. They are expandingto a new tech center and plan toemploy 150 people by 2012.

Suppliers and service providersthat focus on optimizing efficien-cy - including both fuel-savingtechnology and lightweight com-ponents - as well as “clean”technologies including cleandiesel, have a green future aheadof them, if they can withstandthe difficulties of the presentmarket. Although no one knowshow long this storm will last,


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there just may be a brighter,clearer future ahead.

The Regions

The traditional center of theindustry, “Detroit” has become amoniker for the entire automo-tive industry. Today, the industrystretches across a north-south axisof over 800 miles. Interstate 75runs through Michigan, includ-ing Detroit, and all the way downto Atlanta, GA and beyond,while Interstate 65 starts innorthern Indiana and continuesto Birmingham, AL and beyond.The majority of the U.S. autoindustry is located in or near thisI-75/I-65 corridor, often referredto as “Auto Alley,” though pro-duction does spread across all ofNorth America, as shown in theimage. Due to the varying eco-nomic histories of the differentregions, the southern and north-ern ends of Auto Alley havedeveloped very different profiles.

South

Including Tennessee, Alabama,Georgia, South Carolina, andsurrounding states, the Southhas drawn an increasing num-ber of new production facilities,especially from foreign-ownedmanufacturers. These manufac-turers and suppliers have beendrawn to the South because ofits relatively low wage rates,minimal union influence, andthe subsidies offered to compa-nies creating new jobs. As KenStewart, Commissioner of theGeorgia Department of Eco-nomic Development, states,

“Companies are finding thatthe lower than average cost ofdoing business combined with avital workforce make it an idealplace to manufacture a qualityproduct at a competitive price.”Volkswagen has announcedtheir new plant in Chattanooga,TN, and many of their suppli-ers are expected to follow.Suppliers serving BMW inGreenville/Spartanburg, SCand Mercedes-Benz inTuscaloosa County, AL, arenow aiming to supply othermanufacturers such as Hyundaiin Alabama, Nissan in Ten-nessee as well as Kia in Georgia.

North

The northern end of Auto Alleyincludes Michigan, Ohio, Indi-ana, and Illinois as well assurrounding states and Ontario,Canada. Michigan is a researchand development (R&D) power-house, and it “is still number onein the U.S. when it comes tovehicle-related R&D as well asindustrial R&D intensity,”says Martina Schlagweinfrom the Michigan Eco-nomic DevelopmentCorporation. Manycompanies choose tolocate their R&D cen-ters in the North –sometimes even if pro-duction is in the South -because of the availableengineering talent, as well asthe opportunities and synergiesthey can gain from the extensivesupplier network located there.Those that have productionactivities in the North point to

the large pool of experiencedworkers as a key advantage. Withmore than 350 subsidiaries anddivisions of automotive suppliers,the German automotive supplierindustry has a very strong foot-print in Michigan.

Due to the importance of Ger-man companies to the U.S.automotive industry, the GermanAmerican Chambers of Com-merce are deeply involved in theindustry. Whether it is assistingindividual German companiesstart or expand their operations,hosting an Open House at theCenter for Automotive Researchin Ann Arbor, MI, exhibiting atthe Society of Automotive Engi-neers (SAE) World Congress inDetroit, MI, or visiting VW’snew production site in Chat-tanooga, TN, the GermanAmerican Chambers of Com-merce are there.

Your automotive contacts at the German American Chambers

of Commerce:

South: Martina Stegmeier, German American Chamber

of Commerce of the Southern U.S., Inc.

404-586-6808 • [email protected]

North: Virginia Attaway, German American Chamber

of Commerce of the Midwest, Inc.

312-494-2163 • [email protected]

GAT


P A R T N I N E

Hamburg is a city characterizedby Hanseatic traditions andGerman “Gemuetlichkeit”.

Charming red brick and half-tim-bered houses, luxurious villaslining old boulevards, cozy cot-tages shoulder to shoulder alongnarrow avenues, as well as its har-bor and waterways invoke theinimitable flair of bygone days andgood old German tradition.

The city has aptly been called the“Gateway to the World”due to its history as theembarkation point forgenerations ofimmigrants to

the new world. When I was bornin Hamburg thirty three years agoto a merchant family, little couldanyone have guessed that I wouldone day make the transatlanticjourney like thousands before meand leave my footprints on theU.S. state of Texas.

“Honest and true to our word”—this old maxim of Hanseatic

merchants still ringstrue today as the

P E R S O N A LB A C K G R O U N D

G A T O N - S I T E


2 4

www.reich-realty-intl.com

German EntrepreneurialSpirit in the United StatesPart Nine tells the story of Houston based

Bianca Reich from Hamburg.


ca! I like to call it my second life,because it is so very different.

Cultural Surprises

Just to name a few: the smorgas-bord of worldwide cuisine; thepresence of every major retailchain in every American suburb;the mega-highways, mega-stores,mega-meals, and mega-churches;a drive-through version of anyservice imaginable; and of course,24/7 accessibility.

The mindset was different, too.Everywhere it seemed as if unlim-ited opportunities were offered

to strike it big in this country,if only one had enough faithand stamina to see it through.

America is still the land ofopportunity and every yearthousands enter seeking fameand fortune.

Biggest Challenge

The biggest challenge in such atransition is to reestablish yourselfin a new society. This requires anunderstanding and acceptance of

foundation we were raised on andlive by.

When I was young my familytraveled a lot in Germany andbordering countries which mayhave inspired my first professionas travel agent and tour guide.

As an adult I traveled the globefor many years. The more coun-tries I visited and the morecultures I experienced the hun-grier I became to discover theworld on my own.

Why America

My company was sending manycharter flights to New York andSan Francisco, cities I started tofall in love with and wanted tolive in. I had achieved all I couldwith the company I worked forin Hamburg. I was ready for anew challenge.

Allow me to explain my fam-ily’s propensity for travel. Mygrandmother’s family is fromCuxhaven and claims manysailors and pilots.

As a lumber merchant, my grand-father visited the Muir Woods,New Orleans, Galveston, Beau-mont, Houston, Atlanta andmany other places in the U.S.between 1907 and 1912. We stillhave old postcards he wrote tomy grandmother. My motherdecided she wanted to visit thesecities to trace her father’s jour-neys. Traveling across the sevenseas seems to have been in ourfamily’s blood all along.

In pursuit of her dream, mymother bought some property inFlorida. One day we received anoffer from a Swiss company to sellSwiss timeshare units in the USA.We took that as a call from destinyand moved to Florida in 1987where I embarked on mysecond profession, learn-ing about real estate.

This marked the begin-ning of my new life inthe new world: Ameri-

2 5


>>

Bianca Reich

Bianca Reich

[email protected]

832-212-6400 phone

832-243-9688 fax

FAST FACTS RE I CH -REALTY- INTERNAT IONAL

Name of President: Bianca Reich

Hometown: Houston, TX

Location: 10497 Town + Country Way #120, Houston, Texas 77024

Year Founded in the U.S.: 2005

Business Activity: Buying, selling, leasing of real estate

G A T O N - S I T E


d i f f e r e n c e s ,modification ofsome of yourtraditions, andintegrating thelifestyle you werebrought up andthe Americanlifestyle. For me atfirst it was a strug-gle to understandthe value of quanti-ty over quality inAmerica, and of coursethere are differences inconducting business.

Greatest Inspiration

What’s inspiring to me is thewealth of opportunity availableto all in this huge melting pot.

So often inthe U.S., fore x a m p l e ,someone is

selling theirfavorite bakedgoods to theirfriends, and

before you knowit they are run-ning their own

company and dis-tributing their productinternationally. Theencouragement andmotivation, the empha-sis on self-confidence,the How-To-Be an

Entrepreneur books, every-thing is available at your

fingertips. Where else can youbecome a millionaire overnight?

Continued training and certifi-cation with Keller WilliamsRealty University.

Reason for Starting Business

The main reason was the work visa.It would have been nearly impossi-ble to get it through an employer, sowe decided to invest in this countryand open our own business.

Also, since English is my sec-ond language I love helpingpeople build a bridge betweendifferent nationalities.

Source of Start Up Capital

We used our own money.

Biggest Obstacle

The biggest obstacle was in thebeginning to get the workingpapers. Once that was achievedanything was possible.

Future Goals

My goal is to increase my clientbase and to be the German realtyconnection across the Atlanticwho makes a difference. Reich-Realty International is known forhonest, loyal and dependableservice. I have been on both sidesof real estate transactions and it ismy goal to make sure that youwill experience no surprises at theclosing table.

The current buyer’s market offersamazing opportunities, especiallyfor European investors due to thefavorable exchange rate of the Euro.Look at www.har.com/1980945 forthis month’s feature.

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Achieving Top Efficiency

The Ingenics Charta

Expert factory planning. Effi-cient production. Lean officeprocesses. Optimized logistics.Seamless operations at home andabroad. For German-based com-panies, these concepts are longsynonymous with Ingenics. Nowclients across North America areincreasingly relying on “theIngenics Charta” to move pastthe competition.

GAT: What does Ingenics do?

REITHMANN: We offer nearlythree decades of experience help-ing companies across differentsectors – including automotive,aerospace, high-tech, and finan-cial services – achieve top effi-ciency in factory planning, pro-duction, and performance.

GAT: What is your relationshipwith your customers?

REITHMANN: As an industrialconsulting firm, we work withcompanies large and small, offer-ing everyone the same dedica-

tion. We see ourselves as a part-ner in supporting each client’sexact business needs. A case inpoint: our dedicated U.S. opera-tion, launched in direct responseto our customers’ requests for atrusted partner “on the ground”as they expanded to NorthAmerica. Today, we bring ourunique blend of German engi-neering and American manage-ment best practices to clientsacross the region.

GAT: What is your approach?

REITHMANN: Our mission issimple: to make sure our clients’factory planning, productionprocesses, logistics, and supplychain management operationswork perfectly – so they can focuson their core competencies andgrow their businesses. Ourapproach is a comprehensive one,covering all phases of the projectfrom initial planning, to systemsdesign, to final implementationand continuous improvement -leveraging synergies and accelerat-

2 8


M E M B E R P R O F I L E

www.ingenics.com

Interview with Stephan ReithmannVP, Ingenics Corp.

Stephan Reithmann, Vice President Ingenics Corp. Lutz Goergens, Consul General Atlanta, FRG

Joerg Herkommer, President Ingenics Corp.


ing ROI. To start, we work close-ly with our clients to understandtheir goals and requirements.After meticulously analyzing theircurrent state of operations, webuild a carefully defined, cus-tomized strategy, using tried-and-tested methodologies designed toachieve rapid results. Our rapidfactory method, for instance,shrewdly combines elements ofthe planning and implementationphases to get a factory up andrunning when and whereverneeded – dramatically reducingtime to market, without compro-mising quality and efficiency.

GAT: How do you put that plan into action?

REITHMANN: We count onour sophisticated tools, and mostimportantly, on our expert team.Unlike any other, Ingenics’ engi-neers, project managers, andstrategists understand the nuancesof each industry like true insiders– yet also bring an outsider’s freshperspective to drive successfulchange. Already at the top of theirclass, they keep abreast of the lat-est trends in science, technology,and business, continually rein-forcing our commitment to excel-lence. Their professional experi-

ence is coupled with extensivelanguage skills and familiaritywith local cultures worldwide,ensuring that we achieve successin every corner of the globe.

GAT: And the sophisticatedtools you referenced?

REITHMANN: We use cutting-edge systems for value streamworks mapping, workflow, knowl-edge management, and more.Ultimately, we provide end-to-endsolutions that increase efficiency,boost performance, and deliverrapid, tangible results.

GAT: What makes Ingenicsstand out?

REITHMANN: There is a com-mon thread that runs throughour integrated approach – fourvalues that drive our people,processes, and solutions. We callit the “Ingenics Charta.” It standsfor highly competent support atevery stage of the game; a cooper-ative effort in addressing currentand future needs; a proactiveapproach to moving projects for-ward; and above all, an innova-tive spirit - delivering ever-moresophisticated solutions to rapidlyimprove bottom lines.” GAT

Office

Ingenics

Ingenics is a leading industrial consulting firm, specializing

in the automotive, aerospace, high-tech, and financial

services industries. Clients include small- to mid-size

companies, as well as large corporations including Bosch,

BMW, Daimler AG, and Lufthansa. Ingenics maintains

offices around the globe and successfully manages

projects in China, Europe, the US, and more. Ingenics

offers an integrated approach to streamlining business

operations from start to finish, with an emphasis on:

• Factory & production planning

• Production efficiency

• Office efficiency

• Logistics planning

M E M B E R P R O F I L E

2 9


Stephan Reithmann, Vice President Ingenics Corp. - Joerg Herkommer, PresidentIngenics Corp. - Kristian Wolf, President & CEO GACC South - Dietmar Bogk,President & CEO DEKRA America, Inc.


F R O M T H E R E G I O N S

10/15 – Rosemont, IL. The German American Chamber of Commerce of the Midwest

(GACCoM) proudly presented Audi of America’s top executive Johan de Nysschen as

part of its ongoing CEO Speaker Series. Mr. de Nysschen talked about the development

of clean diesel and how to promote this new technology to the U.S. market. In light of

the current turmoil in the financial markets, he also commented on and explained how

the financial crisis is affecting the automotive industry. The audience was lucky to see

the new A4 and R8, and while a raffle for the A4 was planned, de Nysschen said

“rank has its privileges”, and decided to raffle off the R8 instead. The Audi R8 was

named as 2008 World Performance Car and also won World Car Design of the Year

2008. Mr. Wim van Acker, Managing Partner with Roland Berger Strategy Consultants

LLC acted as our moderator for the lively Q&A session. Thank you to our sponsors: Audi

of America, Lufthansa German Airlines, Roland Berger Strategy Consultants LLC, and

Schunk of North America. To view a video of the entire speech and discussion, please

visit www.gaccom.org and click on past events.

C E O S P E A K E R S E R I E S

San Francisco, CA

10/9 MN Chapter:

“The Transatlantic Relationship”

with Karsten D. Voigt

10/23 MN Chapter:

Luncheon with H.-U. Klose

10/7 3rd Green Initiative

Networking Event

10/28 Young Professional

Networking Event

10/2 Business Luncheon:

“Knowledge Management

in the Oil & Gas Industry”

10/1-3

Business Delegation

from Lower Saxony

10/6-11

Business Delegation

from Saxony

10/23

Octoberfest

GACC HighlightsOctober 2008

350 North Clark Street | Chicago, IL | 60610 | 800.453.0600 | www.mesirowfinancial.com

The Mesirow Financial name and logo are registered service marks of Mesirow Financial Holdings, Inc., © 2008, Mesirow FinancialHoldings, Inc. All rights reserved. Investment Services offered by Mesirow Financial, Inc., Member NYSE, SIPC • Insurance Servicesoffered by Mesirow Insurance Services, Inc. Consulting Services offered by Mesirow Financial Consulting, LLC

Investment Management

Investment Services

Insurance Services

Investment Banking

Consulting

Real Estate

For more information, please contact:

Christiane Bock, Vice President [email protected] Insurance Services, Employee Benefits

Ruth Hannenberg, Senior Managing Director [email protected] Services, B/D and IA

Peter Hegel, Managing Director [email protected] Management, Fixed Income

Ross Norstrom, Managing Director [email protected] Services, Property and Casualty

Serving the financial needs of institutions,corporations and individuals since 1937



F R O M T H E R E G I O N S

3 1


Chicago, IL

Atlanta, GA

Detroit, MI

Philadelphia, PA

Orlando, FL

Miami, FL

10/15 YEC Monthly Stammtisch

at Berghoff

New York, NY

9/30 Luncheon:

“325 Years: Celebrating

the German Legacy

in Philadelphia”

10/3 MN Chapter:

“Tag der Deutschen Einheit”

Celebration

10/20 2nd Germany Florida

Solar Energy Conference

10/15 D & O Liability

with Noerr Stiefenhofer Lutz

10/16 YEC BoatcruiseMinneapolis, MN

St. Paul, MN

10/16 Zeppelin

Anniversary Dinner

10/30 Members

Meet Members Deloitte

Houston, TX

10/9 YEC After-Work

Social Mixer @ East Andrews

10/21 Business Seminar

with Kevin Krause

10/21 Solar Energy

Reception

10/8 MI Chapter:

Unity Day Reception


Atlanta

German American Chamber of Commerceof the Southern United States, Inc.530 Means Street, Suite 120

Atlanta, GA 30318

T 404-586-6800 F [email protected] • www.gaccsouth.com

Chicago

German American Chamber of Commerceof the Midwest, Inc.401 N. Michigan Avenue, #3330

Chicago, IL 60611-4212

T 312-644-2662 F [email protected] • www.gaccom.org

Houston

German American Chamber of Commerceof the Southern United States, Inc.Texas Office1900 West Loop S., Suite 880

Houston, TX 77027

T 713-629-8787 F [email protected] • www.gacctexas.com

New York

German American Chamber of Commerce, Inc. 75 Broad Street, 21st Floor

New York, NY 10004

T 212-974-8830 F [email protected] • www.gaccny.comEditor & Advertising Coordinator:

Nicola Michels • [email protected] 212-956-1770 F 212-974-8867

Philadelphia

German American Chamber of Commerce, Inc.Four Penn Center, Suite 200

1600 John F. Kennedy Blvd

Philadelphia, PA 19103-2808

T 215-665-1585 F [email protected]

San Francisco

German American Chamber of Commerce Inc.California Branch201 California Street, Suite 450

San Francisco, CA 94111

T 415-248-1240 F [email protected]

Washington, DC AFFILIATED ORGANIZATION

Representative of German Industry and Trade1776 I Street NW, Suite 1000

Washington DC 20006

T 202-659-4777 F [email protected] • www.rgit-usa.com

T R A D EG E R M A N A M E R I C A N

T H E M A G A Z I N E O F T H E G E R M A N A M E R I C A N C H A M B E R S O F C O M M E R C E

German American Trade is publishedmonthly except bimonthly in January andJuly by the German American Chamber ofCommerce Inc., 75 Broad Street, 21stFloor, New York, NY 10004.

Reproduction in whole or in part of anyarticle is prohibited without permission.

Unsolicited manuscripts cannot be returnedunless accompanied by a properly addressedenvelope bearing sufficient postage. Editorreserves the right to edit letters to bereprinted. Editor and publisher cannotaccept any liability for the accuracy or com-pleteness of any material published.Contributed articles do not necessarilyreflect the Chamber’s position. If you haveany comments regarding articles in thismagazine, please call 212-956-1770.

Application to mail periodicals postage ratesis pending at New York, NY and additionalmailing offices.

One Year Subscription: US$ 50 (Euro 50,-)

Single copy: US$ 5

U.S. postmaster send address changes to:German American Trade, 75 Broad Street,21 Fl., New York, NY 10004.

Office of publication: New York

Publication date of this issue: Nov 2008

© Copyright 2008 German American Trade

GAT Editorial Team

Nicola Michels GACC NY [email protected]

Barbara Afanassiev GACC NY, Philadelphia [email protected]

Stefanie Jehlitschka GACC [email protected]

Anja Nemitz GACC NY, California [email protected]

Janka Pieper GACC [email protected]

Pia Spangenberger GACC [email protected]

Julia Zimmermann GACC South, Texas [email protected]

Design and Production

328 Commerce Street

Hawthorne, NY 10532

T 914-741-0445 F [email protected] www.thinkersdesign.com

3 2



3 3


Nov. 1-16

Christkindlmarket Oakbrook CenterOak Brook, IL

Held by GACCoMwww.gaccom.org �

E V E N T C A L E N D A R

from November 1 - 28, 2008Nov. 4

Afterwork Social Mixer Non-Partisan Election NightHouston, TX

Held by GACC Southwww.gacctexas.com �

Nov. 7

Annual Executive German Wine DinnerChicago, IL

Held by GACCoMwww.gaccom.org

Nov. 12

Green Building Innovation Conference Chicago, IL

Held by GACCoMwww.gaccom.org �

Nov. 12

Seminar with PersologNew York, NY

Held by GACC NYwww.gaccny.com�

Nov. 18

Business Luncheon Sponsored by BAC Atlanta, GA

Held by GACC Southwww.gaccsouth.com �

Nov. 19

YEC Monthly Stammtisch Chicago, IL

Held by GACCoMwww.gaccom.org

Nov. 18

Latin American Art Exhibition:Economy Meets the Arts Atlanta, GA

Held by GACC Southwww.gaccsouth.com �

Nov. 20

Gallery and Networking Receptionwith the Permanent Mission of Germany to the United NationsNew York, NY

Held by GACC NY and the Permanent Mission of Germany to the United Nationswww.gaccny.com

Nov. 20

MI Chapter: Annual Fall DinnerBirmingham, MI

Held by GACCoM MI Chapterwww.gaccmi.org

Nov. 20

"After Hours" BusinessNetworking @ INPAtlanta, GA

Held by GACC Southwww.gaccsouth.com

Nov. 28 - Dec. 23

CO Chapter: GACC Christkindl MarketDenver, CO

Held by GACCoM CO Chapterwww.gacc-co.org�

Nov. 27 - Dec. 24

13th Annual Christkindlmarket ChicagoChicago, IL

Held by GACCoMwww.christkindlmarket.com�

Nov. 21

GALA 2008 19th Annual Benefit EventPhiladelphia, PA

Held by GACC Philadelphia www.gaccphiladelphia.com�

Nov. 12

Panel Discussion: “USA after the Election - Impacton German-American Trade”Stuttgart, Germany

Held by all GACCs�

Nov. 11-12

Global Connect ExhibitionStuttgart, Germany

Held by all GACCs

Nov. 9

International BusinessConnections Forum at the TexasRenewables Conference '08Austin, TX

Held by GACC Southwww.gacctexas.com �

For all GACC Eventswww.ahk-usa.de


GAT: Dr. Blank, tell us a little bitabout yourself. What was yourprofessional background in Ger-many and what made you choosethis new challenge in New York?

BLANK: After studying econom-ics at the Technical University ofBerlin my first job was with “Afrika-Verein der deutschen Wirtschaft”(Africa Association) based inHamburg. After 4 years withAfrika-Verein I joined GTZ, theGerman technical co-operation.GTZ at this time was setting up a“Buero fuer die Zusammenarbeitmit der Wirtschaft” in the city ofBerlin. Before I started my workwith GACC, I was with DIHK, theAssociation of German Chambersof Industry and Commerce. DIHKserves as the “umbrella” for theentire network of GermanChambers – roughly 120 offices inabout 80 different countries. AtDIHK I was responsible for theintroduction and implementationof a new service concept,“DEinternational”, that would aimto streamline and harmonize theservice sector of all German cham-bers worldwide. After five years ofproject management, however, Ifelt it was time for a change.DEinternational now is on its way,and I was eager to look “from theother side”, that is working withone single chamber directly, ratherthan supporting the entire chambernetwork from Berlin. Here theGerman American Chamber ofCommerce, New York, was my firstchoice. I’ve known GACC NewYork from my DEinternational

experiences for quite a few yearsalready and always appreciated itsprofessional work - be it on its ownas well as within the context of theregional and global network.

GAT: What does the Chambermean to you? What impact doesthe Chamber have in your opin-ion in the bilateral relationGermany – USA?

BLANK: GACC New York is wellpositioned to further improve itsrole as service provider to Germanand American companies as well asto strengthen the ties between allGerman American Chambers(Atlanta, Chicago, New York, SanFrancisco). My personal objectivewill be to help GACC positioningitself even stronger within theGerman Chamber network bothon a regional and global level. Inthis regard I aim to foster co-opera-tions and exchange of ideasbetween the chambers. Since thebusiness relations betweenGermany and the U.S. are strongand most certainly will remainstrong over the years to come, I dosee great opportunities for theGerman American Chambers ofCommerce to position themselvesas the “one and only point of entry”for companies seeking businessopportunities in both countries.

GAT: How do you describe yourrelationship with America?

BLANK: I do have a very specialrelationship with the U.S.: In1988/89 I had the opportunity to

work as an intern with StinnesCorp., New York, and to studyeconomics for two semesters atStevens Institute of Technology,Hoboken in New Jersey as anexchange student. This was myfirst visit to America and I reallyenjoyed living, studying andworking here. Ever since I triedto come back to the U.S andNew York City at least once ayear. In 1991 I again had thechance to stay for half a year inthe city – working with theUnited Nations Department onTransnational Corporations. I amvery much looking forward toworking with the Chamber, liv-ing in one of the most excitingcities and learning even moreabout America, her people, poli-tics and culture.

BO

AR

D

ME

MB

ER

I

NF

O

Dr. Michael Blank Vice President and TreasurerGerman American Chamber of Commerce New York

(212) 974-1882

[email protected]

B O A R D T A L K

3 4


Interview with Dr. Michael BlankVice President and Treasurer GACCNY

GAT


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