Detroit East
I I
s Israel on the threshold of becoming the Silicon relaxed free-trade policies with
Valley of the Middle East?
the United States and Europe.
That long-held dream of Israel's Prime Minister
* The vast influx of Russian
Binyamin Netanyahu is much closer to becoming scientists and engineers, many of
a reality, thanks to the apparent success of a new them with expertise in advanced
joint venture by General Motors and its Israeli dis- materials and systems develop-
tributor, Universal Motors Israel Ltd. of Tel Aviv.
ment.
Yet the GM-UMI partnership is only part of an ex-
* The eagerness of Israel's so-
plosion of worldwide automotive activity and interest in phisticated military industry to
Israel and its high-tech products.
convert already-developed prod-
Detroit-based General Motors is already one of the ucts to civilian markets.
largest employers in Israel, and one of its best customers
* Israel's entrepreneurial spir-
for automotive parts. The auto giant, through its GM it and vitality, a key factor in the
Worldwide Purchasing, spent over $20 million in Is- eyes of R&D guru Baker.
rael this year. And the firm's
GM Hughes subsidiary pur-
chased an additional $40 million
of Israeli-made aerospace parts.
GM officials say that the com-
pany could easily double this
year's Israeli auto parts sourc-
ing in 1997.
GM's commitment to Israeli
knoW-how is a key factor in the ALAN ABRAMS SPECIAL TO THE JEWISH NEWS
company's "globalization." The
result could change the way au-
en Baker's intense and sincere commitment to Is-
tomobiles are built and driven.
rael is matched by his devotion to his fiancee, Dr.
"Yesterday, Israel exported
Susan Borenstein. Indeed, the couple are set to
oranges. Today, it's high-tech
exchange their wedding vows tomorrow (Dec. 7)
products like electronics and at Temple
Israel.
software," says Reed Brown,
Dr.
Borenstein,
a veterinarian at Rochester Animal
managing director of the GM-
Hospital,
accompanied
Mr. Baker on his visit to Israel Oct 18-24.
UMI Technology Research &
Ken Baker sits on an EV1, GM's
Mr. Baker had planned to meet with Prime Minister Netanyahu, but their meeting was cancelled when electric vehicle.
Development, Ltd. partnership.
Mr. Brown credits liberal Is- the diplomatic crisis of late October erupted.
The next day, Mr. Baker was having lunch with Avihu Ben-Nun, the former Israeli Air Force chief who
raeli government incentives,
Tice of the Chief Scientist or
introduced by previous govern- is president of UMI. Mr. Ben-Nun's cellular phone rang during the lunch, and after a briefoonversation,
the BIRD (Bilateral Israel Re-
ments but enhanced by the Ne- he handed the phone over to Mr. Baker.
It was Prime Minister Netanyahu on the line. "We talked for 15 minutes," says Mr. Baker. "He was sor-
search & Development) pro-
tanyahu regime, for luring
ry our meeting had been cancelled, and he invited me back to Israel to meet with him." Mr. Baker in- gram," says Mr. Brown.
global automakers to Israel.
The total incentives fall
Although GM is alone among tends to take him up on the offer.
Mr. Baker, who is not Jewish, studied Hebrew prior to his journey. But he wasn't prepared to hear his
somewhere between 50 and
the American Big Three au-
repeated so often by Mr. Ben-Nun during the UMI chief's brief conversation with the prime minis-
60 percent, significantly high-
tomakers in participating in a name
ter.
er than R&D incentives of-
joint venture with Israel, Ford
"I kept hearing Mr. Ben-Nun saying 'Ken, Ken,' and each time he did, I kept reaching for the phone,"
fered in the United States.
Motor Co. and Chrysler Corp.
"The only thing even remote-
have also reaped the benefits of Mr. Baker says with a smile. "It wasn't until later that I realized that 'ken' is Hebrew for yes, and Mr. Ben-
ly close to that would be some
Israeli automotive product Nun was only acknowledging the other end of the conversation."
of the programs in Ann Arbor,
research through Israeli-manu-
or Detroit's Cass Tech devel-
factured technology and components. Major European-
GM, which already has high-tech efforts underway in
based international automakers such as Mercedes-Benz 60 countries, considers Israel an integral part of its glob- opment programs," says Mr. Brown.
But it is people who make the ultimate difference. Mr.
AG, Volkswagen AG, and GM's Adam Opel AG unit, have alization strategy.
Brown enjoys showing "my German friends a chart de-
recently entered into development partnerships with Is-
Originally set up to provide opportunities for Russians picting that they have less than half of the per capita en-
raeli-based consortiums.
who emigrated to Israel, the Israeli government extended gineers and scientists working in aerospace and
At GM's Warren, Mich., Tech Center, Ken Baker, vice the incentive programs to offer equal opportunities for
president in charge of GM's Research and Development foreign investors. As GM's Mr. Brown puts it, "The pro- automotive R&D that Israel does."
Mr. Baker, who recently returned to Detroit from a
Center, enumerates the factors involved in Israel's trans- grams provided the Russian immigrants, many of whom
visit
to Israel, is an enthusiastic super salesman when
formation from a non-player in the auto world to its emer- hold advanced technical degrees, with the opportunity
gence as the newest frontier in the global hunt for of creating incubator companies in a consortium. It isn't it comes to singing the praises of the Tel Aviv Techno-
logical Tunnel, Israel's version of California's legendary
high-tech: .
unusual to find 20 or 30 start-up companies all occupy-
* GM's desire to expand beyond a multi-national op- ing space in one building with the government provid- Highway 128 through the Silicon Valley.
The unique R&D partnership between GM and UMI
eration.
ing the heat, lights, lab space and secretarial staff.
searches out innovative concepts and products that GM
* Lucrative Israeli government incentives which en-
"We tap into that pool either by helping sponsor a ven-
courage the flow of investment dollars, coupled with ture or by working with the government through the Of- can feed directly into its worldwide business. A key ob-
jective, according to Mr. Baker, is to serve as a window
A Little Diplomacy
While In Israel
K
52