While Israel does not engage in large scale vehicle manufacturing, more than 100 Israeli manufacturers supply systems, parts, modules and tooling to both original equipment manufacturers (OEMs) and to the secondary market. Originally established to support, among others, the security and aircraft industries, Israeli companies have successfully adapted relevant technologies that were utilized for the military to civilian uses and made themselves a prominent technology destination for the international automobile industry.

Israel exports around $800 million worth of automotive parts and systems annually, many of which are utilized by leading manufacturers such as Daimler, Jaguar, BMW, VW, PSA, GM, MAN, International Truck & Engine, Renault-Nissan, Ford and Volvo as well as to Tier 1 suppliers such as: Delphi, Bosch, Valeo, Autoliv, Faurecia, Johnson Controls and Magna Styer. 

Israel’s highly skilled workforce, strict compliance with international quality standards, sophisticated computerized logistics and advanced R&D capabilities and investments positions the country as a prime destination for outsourcing and development of new products to global vehicle manufacturers and their suppliers. In the past few years Israel pioneered a number of breakthrough technologies including specialized materials, advanced electronics, communication systems, driver awareness systems, automotive IT and security.  As electronics become an increasingly significant part of the automotive industry, having risen in recent years from 15 to 35% of total car costs, Israel is well positioned to become a leader in this niche market.

Why outsource in Israel? Four benefits: more advanced and innovative technical solutions, lower costs, reliable on-time delivery, and high-quality parts.

This partnership with Israel will strengthen our ability to collaborate with a country on the cutting-edge of …technologies. We are aggressively targeting companies in the automotive, life sciences, advanced manufacturing and alternative energy industries…. 

 (Gov. Jennifer Granholm, Michigan, 11/18/08)

Main Industry Segments:

Innovative Materials

Israel's application of innovative materials for the automotive industry combines increased safety with the utmost in comfort. Breakthroughs have included TexoPlast's tough, lightweight fabric featuring a soft, luxurious-to-the-touch material on one side with a hard plastic shell on the other, and Raviv's carbon fabric heated seat pads that offer safer, more energy efficient, uniform seat temperature.  BGN Technologies, the technology transfer company of Ben Gurion University has available innovative materials such as: Light Weight, high-strength boron-carbide armor; Consolidated light alloys with Nano/Sub-micron structure – light materials based on aluminum, magnesium and titanium; and Cellular magnesium foam for special energy absorbing applications. FriCSo Ltd. provides a patented, environmentally friendly, nano-layer based surface treatment that significantly reduces friction between moving parts.  

Advanced Electronics and Automation Technologies

Israeli companies offer electronic systems, equipment and products which improve the accuracy, quality and efficiency of vehicle production and are also leaders in the field of driver vision systems, biometric-based security and integrative communications systems, including night vision systems, on-board driver assistance systems, telematics, navigation & control systems, sensors, voice processing solutions and testing & measurement solutions.

Israeli software companies are joining the automotive scene in growing numbers. They provide, among others, software for Digital Broadcast Receiving applications; Robust embedded security solutions as well as process-oriented software linking product engineering with all manufacturing disciplines.

New Israeli "vehicle to environment" communications systems including satellite TV reception promise to change the entire driving experience. Performance improvement features include engine control modules, an electronic voltage regulator, and a system to monitor fluid quality and temperature (using microwave transmissions).

Clean-Tech Initiatives

Limited by scarce natural resources, Israel's pioneering status in environmentally friendly technologies has also carried over to its automotive industry. One example from BGN Technologies is its partnership with Exxon Mobil Corporation to manufacture a container for alternative hydrogen fuel that is exceptional in its content ability as well as in the amount of security it provides.

ETV Motors Ltd., is an Israeli start-up developing innovative electric vehicle propulsion technology. The company's activity is focused on a novel, high-efficiency, dual–power micro-turbine and a proprietary high voltage lithium-ion battery. Integration of these optimized components will result in an unparalleled electric vehicle propulsion platform.

Furthermore, the Israeli government has made a strategic decision to support the development of an infrastructure for mass transportation using electric vehicles, in cooperation with “Better Place” a project initiated by Israeli entrepreneur Shai Agassi, which aims to build an electric car network by the end of 2011.

Automotive Industry Highlights

MobilEye Vision Technologies introduced the Advanced Warning System (AWS), a camera based driver assistance system for accident prevention and mitigation which alerts the driver when the car is too close to the vehicle in front of it or when the vehicle is about to exit the roadway or change lanes. The company's customers include BMW, Volvo and GM. MobilEye is the recipient of several prestigious awards including the “Red Herring Top 100 Innovators Award” and the “Frost and Sullivan 2006 Entrepreneurial Company of the Year Award” in the Automotive Industry.

"They (MobilEye) have superior image processing technology that allows for the integration of a large number of applications into one camera," Walter Hagleitner, an expert on driver safety systems with ADAS Management Consulting in Bregenz, Austria (as reported in Business Week 12/8/08)

CogniTens provides comprehensive dimensional measurement solutions focused on improving engineering and manufacturing processes allowing its customers to significantly improve product quality, shorten development cycles, and cut manufacturing costs. In 2006 the company was awarded the “Automotive News PACE Award” honoring innovative automotive suppliers as well as ”Frost & Sullivan’s Technology Innovation of the Year Award.”  Customers include: Daimler, Ford, GM, Honda, Magna International, Mazda, and Toyota among others. 

Raval Ltd. specializes in the development and production of automotive fuel tank venting systems in response to new international environmental and safety regulations. Customers include, among others: Porsche, Audi, VW, Daimler, GM, Hyundai, Mazda, Bentley, and PSA.

Nextec Technologies specializes in high precision, non-contact 3D laser scanning for geometry inspection, quality control and reverse engineering applications. The technology is now incorporated into the vehicles manufactured by VW, Audi, Mitsubishi, and Rolls Royce.

ApNano Materials in collaboration with the Weizmann Institute of Science has developed NanoLub, the world's first synthetic lubricant to be based on spherical inorganic nano-particles.  The company was selected by Red Herring, the US investing journal, as one of the top innovators driving global markets in 2005.

MAG-EH is a world class supplier of integrative mechanical and electro-mechanical assemblies for the automotive industry. Products include: Electronic Parking Brakes, Body & Chassis Hardware, Seat Hardware, Spare Tire Hoist Carriers and Shift Mechanisms. Customers include: GM, Opel, Audi and VW.

Plasan Carbon Composites supplies strong and resilient parts made of carbon fiber whose light weight allows for overall reduction in vehicle weight. Customers include: Ford, GM & Chrysler.

PrimeSense has developed a revolutionary low cost 3D capturing device. Its application in cars includes: controlled air bag activation based on spatial detection of the occupant’s positions and movements; driver awareness detection based on head and eyelids spatial position and movements; driver attention monitor; child abandonment detection; as well as easy and reliable operation of car systems with hand or head gestures. The company is cooperating with a leading Japanese vehicle manufacturer to develop a unique and innovative infotainment system,  

Tadir-Gan Group – TG Group incorporates three companies: Tadir-Gan (Precision Products) 1993 Ltd., Ortal Diecasting & Tadir-Gan Europe. TG Group covers the three High Pressure Die-casting processes: Aluminum, Magnesium and Zinc, with full synergic cooperation and higher capabilities. Tadir-Gan (Precision Products) 1993 Ltd. is a two-time winner of the GM Worldwide "Supplier of the Year" award for its achievements in quality, service, technology and price. Ortal Diecasting won the “ZF Ls Best Supplier award.” TG Group's customers include: GM, Ford, VW/Audi, MAN, Porsche, Jaguar, PSA, TRW, Valeo, Autoliv, Draexlmaier, and ZF Lenksysteme.