The reasons why Motorola chose France Khaldoun ANASTAS Olivier BROCHE Denis FEDERICO Gwendoline...
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Transcript of The reasons why Motorola chose France Khaldoun ANASTAS Olivier BROCHE Denis FEDERICO Gwendoline...
The reasons why Motorola chose France
Khaldoun ANASTAS
Olivier BROCHE
Denis FEDERICO
Gwendoline KASTLER
Guerric PHELIP
Morgan VAN BAREN
Mastère Spécialisé Management de Grands Projets
Synopsis • Motorola• About the Crolles center• Typical French assets• Typical French drawbacks• Specific reasons for Crolles2
Motorola in the World • Global leader in integrated
communications and embedded electronic solutions
• 30 bln$ TO, 110,000 employees around the world
• Developing different activities in telecommunications and electronics
Motorola in France
• In 1967 Motorola chose France to set up its first non-American factory
• 3,100 employees on 4 sites : Paris, Angers, Toulouse, Crolles
• Vehicle electronics, mobile phones, semiconductors, R&D and sales
About the Crolles Center (1/3)
• April 12th 2002, Motorola joins Philips (Europe n°1) and STMicroelectronics (World n°3) at Crolles
• Pre-existing European alliance between Philips and STMicroelectronics
• An alliance due to excessive R&D costs
About the Crolles Center (2/3)
• Technical Goal : next generation system-on-chip (SoC) product development for low-power, wireless, networking, consumer and high-speed applications
• Strategic Goal : World leadership of nanometric technologies for SoC
2 major goals
About the Crolles Center (3/3)
• Total Investment : 2.8 bln€, over the next 5 years, equally supported by all three members
• Largest investment on French territory of the last 10 years
• 1,500 direct jobs and 4,500 indirect jobs created
Typical French Assets (1/2)
• High Quality infrastructures• High Quality telecommunication
services• Free and national healthcare system• High Quality of life• Excellent free and national education
and training system
Typical French Assets (2/2)
• Economic and political stability• Central position in Western Europe• Member of the euro zone• Abundant and low cost energy
Exceptionally attractive environmentExceptionally attractive environment
Typical French Drawbacks (1/2)
• High labor taxes• High production taxes• High taxes on managers’ wages• Powerful French unions (Strikes,…)• 35-hour week policy
Typical French Drawbacks (2/2)
• “French Specific” attitude• Fab Closing or moving is very expensive• Unfavorable stock-option policy
Specific reasons for Crolles2 (1/3)
• Motorola’s favorable history• Necessary grouping• Existing alliance between Philips and
STM
From our interview with Mr. Lavigne
Specific reasons for Crolles2 (2/3)
• French R&D assets– Brains– Research Credit Tax unique in the world– 1/2 of the European R&D centers are in
France
From our interview with Mr. Lavigne
Specific reasons for Crolles2 (3/3)
• Government implications– France is the 2nd leading country for large
projects– Active AFI– Crolles2 project signed in 6 days– 108,000 € tax reductions and other incentives
for every job created
From our interview with Mr. Lavigne
Conclusions
• Crolles2 implantation is successful• France is attractive for R&D• … But : if taxes were lower, the HQ
would come more easily to France
HQ + R&D = IndustriesHQ + R&D = Industries