Future Outlook for the Automotive Market
Interview with COO Philipp Hoßfeld
ept stands for quality and precision in the field of automotive printed circuit board connectors. What is the concept behind this?
“Our approach at ept is based on a central principle: We develop and manufacture everything ourselves—from the initial design, through development, planning, and construction of our own production machinery, all the way to the finished product. A good example of this is our proprietary Tcom press® press-fit zone, which has proven itself in the automotive industry for decades. The same applies to our surface technology, which we have developed with and for our customers. On our state-of-the-art electroplating lines, we produce a wide variety of surface combinations (e.g., Sn, Ni, SnPb, Au, PdNi, NiP, In, Ag, and AgSn). Thanks to this comprehensive in-house expertise, we can optimally coordinate all processes. This applies not only to technical parameters but also to aspects such as delivery capability, quality assurance, and response speed. This forms the foundation for the resilience of our supply chain. And in my view, this is the best way to deliver what we stand for: quality and precision in every connection.”
What do you personally stand for, and what does ept stand for?
“Personally, I stand for reliability, trust, and openness. I enjoy a solution-oriented approach to work and am a true technology enthusiast—yet humanity is always important to me. That is exactly what ept stands for as well! Our company is now led by the second generation of our principal shareholder, and the third generation of the Innhalber family is already active in the company. Many of our employees have been with ept across generations of their families, ensuring the highest quality and professional expertise. This allows us to remain independent and guarantee maximum flexibility—and that’s what makes ept unique.”
“Personally, I stand for reliability, trust, and openness. I enjoy a solution-oriented approach to work and am a true technology enthusiast—yet humanity is always important to me. That is exactly what ept stands for as well! Our company is now led by the second generation of our principal shareholder, and the third generation of the Innhalber family is already active in the company. Many of our employees have been with ept across generations of their families, ensuring the highest quality and professional expertise. This allows us to remain independent and guarantee maximum flexibility—and that’s what makes ept unique.”
You proudly proclaim "Made in Europe." Can you explain why?
“Our production for the European market takes place 100% in Germany and the Czech Republic—in other words, entirely within the EU—and we do so deliberately in accordance with the ‘local for local’ principle. This allows us to secure our supply chains while simultaneously reducing our carbon footprint through shorter transport routes. This is part of our differentiation strategy, and thanks to our high level of automation and flexible manufacturing, it also makes us economically competitive.”
“Our production for the European market takes place 100% in Germany and the Czech Republic—in other words, entirely within the EU—and we do so deliberately in accordance with the ‘local for local’ principle. This allows us to secure our supply chains while simultaneously reducing our carbon footprint through shorter transport routes. This is part of our differentiation strategy, and thanks to our high level of automation and flexible manufacturing, it also makes us economically competitive.”
No one does press-fit technology quite like ept. How did this come about, and what developments are driving ept forward?
“The foundation was laid back in the 1980s. Our company founder, Bernhard Guglhör, developed the operating principle of our Tcom press® press-fit zone at that time, which remains the heart of ept technology to this day. Driven by perfection and precision, we continuously refine this press-fit technology. We advance force variations, accommodate a wide range of dimensions—from particularly small to highly robust contacts, for example—and adapt to new material requirements. Even in the sensitive area of whisker formation, we offer low-whisker solutions and are currently working on a completely whisker-free surface.”
“The foundation was laid back in the 1980s. Our company founder, Bernhard Guglhör, developed the operating principle of our Tcom press® press-fit zone at that time, which remains the heart of ept technology to this day. Driven by perfection and precision, we continuously refine this press-fit technology. We advance force variations, accommodate a wide range of dimensions—from particularly small to highly robust contacts, for example—and adapt to new material requirements. Even in the sensitive area of whisker formation, we offer low-whisker solutions and are currently working on a completely whisker-free surface.”
What have been the biggest challenges in recent years?
“E-mobility, autonomous driving, and 4K HD infotainment systems require a significant transformation in the E/E architecture of automotive electrical systems. This has presented the entire European automotive industry with new challenges for years. At the same time, competition—particularly from China—has intensified significantly. The result is intense price pressure amid rising costs and customer expectations. In addition, we have had to contend with massive fluctuations in demand in recent years—triggered by lockdowns, chip and energy crises—which have made planning virtually impossible. Short-term changes of up to ±30% within a few weeks were not uncommon. All of this took place against the backdrop of a stagnating automotive industry, which required continuous adaptation and a high degree of flexibility.”
“E-mobility, autonomous driving, and 4K HD infotainment systems require a significant transformation in the E/E architecture of automotive electrical systems. This has presented the entire European automotive industry with new challenges for years. At the same time, competition—particularly from China—has intensified significantly. The result is intense price pressure amid rising costs and customer expectations. In addition, we have had to contend with massive fluctuations in demand in recent years—triggered by lockdowns, chip and energy crises—which have made planning virtually impossible. Short-term changes of up to ±30% within a few weeks were not uncommon. All of this took place against the backdrop of a stagnating automotive industry, which required continuous adaptation and a high degree of flexibility.”
How do you assess the current economic situation in Germany (particularly for small and medium-sized enterprises) and in the global context?
“In a global comparison, Germany is increasingly losing its competitive edge. High energy costs, excessive bureaucracy, a lack of agility, and political uncertainties—combined with global conflicts and trade barriers—are placing an enormous strain on industry. In the automotive sector in particular, I see that our OEMs’ products are no longer technologically leading in all areas, even though Germany used to play a pioneering role here.
However, I also see that the industry has recognized the problem and is charting a new course. Coupled with what we hope will soon be positive signals from Berlin and Brussels, we are therefore sticking to our European manufacturing operations. I am convinced that we will succeed thanks to our high level of automation, well-trained skilled workers, and a strong training culture.”
“In a global comparison, Germany is increasingly losing its competitive edge. High energy costs, excessive bureaucracy, a lack of agility, and political uncertainties—combined with global conflicts and trade barriers—are placing an enormous strain on industry. In the automotive sector in particular, I see that our OEMs’ products are no longer technologically leading in all areas, even though Germany used to play a pioneering role here.
However, I also see that the industry has recognized the problem and is charting a new course. Coupled with what we hope will soon be positive signals from Berlin and Brussels, we are therefore sticking to our European manufacturing operations. I am convinced that we will succeed thanks to our high level of automation, well-trained skilled workers, and a strong training culture.”
What does reliable and efficient connection technology mean to you? To what extent is a high degree of vertical integration important for ept?
“Every single connection must work, without exception. For us, every pin and every signal counts. Our zero-defect principle already proves this with over 120 billion failure-free contacts in the field. Efficiency means that the connections must be profitable and economically attractive for all contractual partners, both in terms of processing at the customer’s site and in terms of manufacturing at our facility. We achieve this through a high degree of vertical integration. Since we handle all manufacturing steps in-house, we ensure maximum control over quality, costs, and processes, and can thus guarantee both reliability and efficiency.”
“Every single connection must work, without exception. For us, every pin and every signal counts. Our zero-defect principle already proves this with over 120 billion failure-free contacts in the field. Efficiency means that the connections must be profitable and economically attractive for all contractual partners, both in terms of processing at the customer’s site and in terms of manufacturing at our facility. We achieve this through a high degree of vertical integration. Since we handle all manufacturing steps in-house, we ensure maximum control over quality, costs, and processes, and can thus guarantee both reliability and efficiency.”
What challenges and trends do you see in connection technology, and how are you addressing them?
“The shift in automotive wiring harness architecture demands ever-greater miniaturization alongside increasing data transmission rates. At the same time, there is a growing number of custom customer requirements that go beyond established industry standards. We are responding to this with a resilient supply chain and flexible production. Our approach: Developing customized solutions together with customers, for customers, and setting industry standards. Hybrid connectors using press-fit technology, for example, combine high-frequency data, signal, and power contacts in the vehicle electrical system and significantly reduce the required installation space. This innovation optimizes space on the printed circuit board, minimizes placement steps in the assembly process, and simplifies the sealing concept. The result: significant space and cost savings!”
“The shift in automotive wiring harness architecture demands ever-greater miniaturization alongside increasing data transmission rates. At the same time, there is a growing number of custom customer requirements that go beyond established industry standards. We are responding to this with a resilient supply chain and flexible production. Our approach: Developing customized solutions together with customers, for customers, and setting industry standards. Hybrid connectors using press-fit technology, for example, combine high-frequency data, signal, and power contacts in the vehicle electrical system and significantly reduce the required installation space. This innovation optimizes space on the printed circuit board, minimizes placement steps in the assembly process, and simplifies the sealing concept. The result: significant space and cost savings!”
How do you bring innovations to life? Do you have a secret formula?
“We rely on highly trained professionals, many of whom are our own trainees and students, who can advance all the way to leadership positions within our company. A high proportion of trainees is a central pillar of our innovative strength. We want to learn from the best while simultaneously encouraging and fostering new ideas. Innovations don’t arise by chance at our company, but through a clearly structured and guided process. This allows us to steer ideas in the right direction, develop them further, and turn them into marketable solutions.”
“We rely on highly trained professionals, many of whom are our own trainees and students, who can advance all the way to leadership positions within our company. A high proportion of trainees is a central pillar of our innovative strength. We want to learn from the best while simultaneously encouraging and fostering new ideas. Innovations don’t arise by chance at our company, but through a clearly structured and guided process. This allows us to steer ideas in the right direction, develop them further, and turn them into marketable solutions.”
Your products are found in almost every car. In your opinion, what are the biggest challenges in automotive development?
“Speed and flexibility are becoming increasingly important in the automotive market. In Germany, Europe, and North America, the structures at OEMs and suppliers are often too cumbersome, which is becoming an increasing disadvantage in a dynamic market. Furthermore, it is unclear where the future of propulsion is headed—electric, hybrid, or synthetic fuels? Customer needs and legal requirements are evolving in parallel and, in some cases, contradict each other. Another factor is technological change: when it comes to topics like software-defined vehicles (SDV), China and the U.S. are currently leading the way. In the long term, the German automotive industry will have no choice but to cooperate more closely with partners in the U.S. and China.”
“Speed and flexibility are becoming increasingly important in the automotive market. In Germany, Europe, and North America, the structures at OEMs and suppliers are often too cumbersome, which is becoming an increasing disadvantage in a dynamic market. Furthermore, it is unclear where the future of propulsion is headed—electric, hybrid, or synthetic fuels? Customer needs and legal requirements are evolving in parallel and, in some cases, contradict each other. Another factor is technological change: when it comes to topics like software-defined vehicles (SDV), China and the U.S. are currently leading the way. In the long term, the German automotive industry will have no choice but to cooperate more closely with partners in the U.S. and China.”
For years, ept has consistently ranked among the top performers in customer satisfaction in Bishop & Associates’ overall European assessment. In 2021, the company was awarded the SME Prize in Bavaria and was named one of the 50 fastest-growing companies in the state. What sets you apart from others?
“We are a values-driven family-owned company with strong regional roots, even at our international locations. Unlike many competitors, we consciously source in, not out—this has proven particularly valuable in times of crisis. We continuously invest in our own solutions and prioritize individual customer focus over standard solutions. We listen, understand challenges, and deliver tailored, cost-effective solutions—that’s what makes us different and successful.”
“We are a values-driven family-owned company with strong regional roots, even at our international locations. Unlike many competitors, we consciously source in, not out—this has proven particularly valuable in times of crisis. We continuously invest in our own solutions and prioritize individual customer focus over standard solutions. We listen, understand challenges, and deliver tailored, cost-effective solutions—that’s what makes us different and successful.”
How digitized is ept?
“We are constantly working on digitization within the company. For example, we collect machine and operational data, use RFID technology, and are committed to Industry 5.0—with a focus on people. Are we digitizing everything? No. Only where it makes sense and adds real value.”
“We are constantly working on digitization within the company. For example, we collect machine and operational data, use RFID technology, and are committed to Industry 5.0—with a focus on people. Are we digitizing everything? No. Only where it makes sense and adds real value.”
Where do you see the greatest opportunities and the biggest challenges for reducing your company’s carbon footprint and product carbon footprint?
“Thanks to our proprietary production facilities and the use of renewable energy, ept is already well-positioned in the area of CO₂ reduction. We are particularly proud of the machines and systems we have developed and built ourselves, which consume more than 20% less electricity than standard commercial systems. Furthermore, the greatest potential currently lies in highly energy-intensive raw materials such as gold and copper. Here, we are actively working on alternatives, such as NiP surfaces, to further reduce the product’s carbon footprint. Compared to a conventional gold surface, users can reduce CO₂ emissions by up to 80% by using NiP as the contact surface.”
Where do you see ept in five years?
“Where ept is already today: in Germany, the Czech Republic, the U.S., and China—and beyond that, wherever our customers need us.”
“Where ept is already today: in Germany, the Czech Republic, the U.S., and China—and beyond that, wherever our customers need us.”
What advice do you have for young people?
“Join ept and become part of our team.”
“Join ept and become part of our team.”
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