Transcript Motorola 2003

Mastère Spécialisé Management de Grands Projets
The reasons why Motorola chose
France
Khaldoun ANASTAS
Olivier BROCHE
Denis FEDERICO
Gwendoline KASTLER
Guerric PHELIP
Morgan VAN BAREN
Synopsis
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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)
2 major goals
• 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
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)
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Economic and political stability
Central position in Western Europe
Member of the euro zone
Abundant and low cost energy
 Exceptionally attractive environment
Typical French Drawbacks (1/2)
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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)
From our interview with Mr. Lavigne
• Motorola’s favorable history
• Necessary grouping
• Existing alliance between Philips and
STM
Specific reasons for Crolles2
(2/3)
From our interview with Mr. Lavigne
• French R&D assets
– Brains
– Research Credit Tax unique in the world
– 1/2 of the European R&D centers are in
France
Specific reasons for Crolles2
(3/3)
From our interview with Mr. Lavigne
• 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
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 = Industries