Israel is an increasingly big player in the automotive technology sector, with large global brands, such as GM, Toyota, Skoda, Fiat, Honda, Volvo, BMW, Hyundai, Daimler, and many others, having R&D centers in the country or developing partnerships with Israeli-based companies.
This month, Ford formally announced its launch in Israel of a new research center focusing on such technologies as sensors, automated-systems research, connectivity and in-vehicle monitoring. The company's Executive Chairman Bill Ford stressed the importance of being "in one of the world's leading innovation communities". Renault and Nissan opened a joint innovation lab in Tel Aviv earlier this month too, enabling their alliance to also collaborate with Israeli companies.
Israel's automotive technology sector has hundreds of start-ups developing new, cutting-edge solutions for existing and emerging global needs, such as cyberprotection, development of fuel alternatives, use of artificial intelligence for tracking, navigation, and more.
One of the major success stories has been Mobileye, a Jerusalem-based maker of autonomous vehicle technology, which was acquired by U.S. chipmaker Intel in 2017 for $15 billion. Another well-known name in smart transportation, Waze, was acquired by Google in 2013. One more notable example is Innoviz Technologies, a company developing LiDAR sensors used for navigation and safety purposes. This Israeli start-up has among its strategic partners and investors leading auto industry players such as Delphi Automotive and Magna International.
Among those who are represented on the national scene are both companies that specialize in innovation and veteran companies that engage in vehicle assembly and manufacturing processes. The various manufacturing companies in Israel support product development cycles from the initial design phase to final production. Many local manufacturers have supplied components and parts to large international corporations for decades. Another significant advantage is free trade agreements between Israel and many other countries and regions that facilitate commercial activity.
The presence of foreign companies in Israel has contributed greatly to economic growth and has a positive impact on employment, productivity, and knowledge flow as skilled employees switch to local companies.
