Automotive Sector Overview

Lina Ostapchuk

Association Business Events Manager

Contact Me

From Goodyear tyres to a new 215-kilometre testbed for autonomous vehicles, Luxembourg is a regional automotive and mobility hub.

Thanks in large part to its vibrant business environment, bustling manufacturing and R&D facilities, and location between two of Europe’s largest car markets, Luxembourg is a key location in Europe for Tier 1 and Tier 2 suppliers. Long known for being home to important automotive companies such as Goodyear, BorgWarner, and IEE, Luxembourg is also home to a growing number of smaller companies and start-ups. The components produced in the country range from tyres and windshields to Advanced Driver Assistance Systems (ADAS) and human-machine interfaces.

Luxembourg: at the centre of a robust automotive region

The automotive sector in Luxembourg draws upon synergies with its cross-border partners to foster business and innovation. These partnerships are facilitated by Autoregion, bringing together companies from Luxembourg, France, and Germany, all of which are in the Greater Region.

Our R&D is key

Luxembourg is also home to a number of R&D facilities, some of which are well-established and linked to manufacturing plants, such as Goodyear’s Innovation Center, and others which are newer programs run in conjunction with public research entities, such as the Luxembourg Institute of Science and Technology (LIST) where Key Enabling Technologies like advanced materials and nanotechnology are studied and developed.

A proven track record in digitalisation and data security

Smart mobility such as car-share schemes and real-time bus schedules relies on top-notch digital infrastructure and data, and in this field Luxembourg continues to lead the way. The government is strongly committed to developing the digital economy and data-driven innovation by supporting high-performance computing, one of Europe’s largest data centre parks, and artificial intelligence. As a global financial centre, Luxembourg is already highly competent in managing and storing sensitive data in a secure and legally compliant manner.

Mobility Innovation Campus

Located 20 minutes north of Luxembourg City in Bissen, the Mobility Innovation Campus, which is currently under construction, will host start-ups as well as established automotive companies. Sensor technologies specialist IEE has already moved there, and Goodyear is sending more than 100 team members to the campus. The 14-hectare property includes incubator facilities, R&D space, shared meeting rooms, and an events centre  – all with the aim of fostering collaboration, community, and innovation. POST Luxembourg has chosen the campus as one of five locations for 5G, so companies and researchers at the campus will be able to develop applications and projects that take advantage of this fifth-generation wireless technology.


Once they’ve been tested in closed facilities, self-driving cars need to be tested in realistic road environments, which in Europe means crossing borders and relying on fluctuating data when passing through different countries. Luxembourg, France, and Germany have developed a solution: a cross-border digital testbed for autonomous vehicles. The testbed consists of 215 kilometres of motorways and roads which are being covered by 5G. Some of the big names that are taking part are Renault, Volkswagen, and Volvo. The testing conditions include changes in speed limits, tunnels, toll booths, roadworks, diverse road markings, and multiple border crossings.