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The reasons why Motorola chose France

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  1. The reasons why Motorola chose France Mastère Spécialisé Management de Grands Projets Khaldoun ANASTAS Olivier BROCHE Denis FEDERICO Gwendoline KASTLER Guerric PHELIP Morgan VAN BAREN

  2. Synopsis • Motorola • About the Crolles center • Typical French assets • Typical French drawbacks • Specific reasons for Crolles2

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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 environment

  10. Typical French Drawbacks (1/2) • High labor taxes • High production taxes • High taxes on managers’ wages • Powerful French unions (Strikes,…) • 35-hour week policy

  11. Typical French Drawbacks (2/2) • “French Specific” attitude • Fab Closing or moving is very expensive • Unfavorable stock-option policy

  12. Specific reasons for Crolles2 (1/3) • Motorola’s favorable history • Necessary grouping • Existing alliance between Philips and STM From our interview with Mr. Lavigne

  13. 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

  14. 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

  15. 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