FANUC is the world’s leading supplier of CNC controls, industrial robots, and automation technology. The Japanese company looks back on almost 70 years of history – shaped by visionary engineering, consistent automation, and close global cooperation with corporations such as General Motors and Siemens. J-BIG spoke with Ralf Winkelmann, Managing Director of FANUC Deutschland GmbH, about the pioneering founder Dr. Seiuemon Inaba, the rise from niche provider to global player, and the opportunities for Germany in the age of industrial transformation.
J-BIG: FANUC was originally a division of Fujitsu. How did the spin-off come about?
Ralf Winkelmann: That’s right, FANUC was originally founded as part of Fujitsu and was headed by Dr. Seiuemon Inaba at the time. During the period of intense economic growth in Japan starting in 1955, Inaba was heavily involved in mechanical systems with the vision of entering the market for servo technology and electric drives.
In 1972, this growth area became an independent company: Fujitsu FANUC Ltd. Inaba was a pioneer, especially when it came to combining servo technology with CNC technology, i.e., automated control technology. At that time, mechanical movements were mainly achieved using hydraulics, which had a number of disadvantages. FANUC therefore decided early on to switch to electronic servo motors – a significant technological advance.
J-BIG: What was servo technology used for back then, and how has the technology developed?
Ralf Winkelmann: FANUC initially developed CNC-controlled servo motors for machine tools such as milling and drilling machines. This was soon followed by ROBOCUT wire EDM machines, which were used for precision metalworking. We used our own robots in our own production for the first time in 1974 – at that time not for sale, but exclusively for automating production processes. When we saw how well it worked, we started selling them in 1977 and began exporting them shortly thereafter.
The robotics portfolio was then systematically expanded. A major development milestone was the collaboration with General Motors. At that time, GM was using a large number of hydraulic robots and quickly realized that its core competence lay in automotive engineering and not in the development of production systems. In 1982, we therefore founded the joint venture GMFanuc Robotics Corporation to develop robots together. Initially, GM held the majority stake, but FANUC later acquired all of the shares. That was the second stage of our own robot development.
J-BIG: What prompted FANUC to automate its own production back in the 1970s, at a time when there was no shortage of skilled workers?
Ralf Winkelmann: That was clearly thanks to Inaba’s visionary thinking – and this mindset continues to shape the company today. FANUC products should be designed so that they can be manufactured automatically. This took product development to a whole new level and made the production process itself part of product development.
Inaba consistently implemented this concept – but realized that there were no production resources available to make it a reality. It was therefore only logical to develop our own products to the point where they could be manufactured automatically. Our guiding principle of “fewer parts” reflects this development. The goal was and is to build the best product with as few parts as possible. On the one hand, because this makes it easier to maintain, and on the other hand, because it can be produced more easily using automation.
Business development was rather slow at first – FANUC’s big breakthrough came with robots that were used in large numbers in the automotive industry. This upswing began in the 1980s and continued into the 1990s, despite a number of crises. This prompted FANUC to invest heavily in the automation of its own production. The result in the 1990s was the first fully autonomous production facilities, also known as “dark factories.”
J-BIG: How did FANUC find its way to Germany and Europe?
Ralf Winkelmann: Inaba recognized early on that even an excellent product alone is not enough – you always need an organization that supports customers on site. This gave rise to our “Service First” approach: We are wherever our customers are. To my knowledge, the first foray into European was actually in Bulgaria in the 1960s, behind the Iron Curtain. A customer there used a machine tool with FANUC controls and drives.
Germany followed shortly afterwards, partly due to the close cooperation with Siemens at the time. FANUC was dominant in servo technology and CNC, so Siemens began to distribute our products. In 1976, FANUC Service GmbH was founded in Erlangen – the first official step into Germany.
J-BIG: How did the German organization develop after that?
Ralf Winkelmann: In the early days, there were several parallel developments. In 1980, FANUC Service GmbH became FANUC Germany GmbH and the headquarters were moved to Hilden. In 1986, we founded the joint venture GE Fanuc Automation GmbH in Frankfurt with General Electric, as FANUC did not have its own PLC, i.e., programmable logic controller. GE contributed the necessary expertise.
In 1992, we moved from Hilden to Neuhausen near Stuttgart, as most of our customers were based in southern Germany – a logical step given the mechanical engineering strongholds in the south. The joint venture with GE was also relocated there in 1995.
At the beginning of the 2010s, all business activities in Japan were then consolidated under one roof in order to offer customers a central point of contact. In 2013, FANUC Europe Corporation was founded and all national subsidiaries were subsequently merged. Since 2015, FANUC Deutschland GmbH has been responsible for the local market – currently under my leadership.
J-BIG: How is FANUC positioned in Germany today?
Ralf Winkelmann: Our headquarters in Neuhausen has around 500 employees. It is home not only to FANUC Deutschland GmbH, but also to FANUC Europe GmbH, which provides support for other European countries. We also have sites in Wörth-Wiesent near Regensburg, in Meinerzhagen near Cologne, and in Seevetal near Hamburg.
Each of these branches replicates everything we have in Neuhausen, only on a smaller scale: technical support, service, showroom, and training facilities. This allows us to consistently implement our “service first” philosophy, just as we have done since the 1950s.
J-BIG: The partnership with Siemens ended in the 1980s. What did that mean for business in Germany?
Ralf Winkelmann: Due to intervention by the antitrust authorities, Siemens began marketing its own CNC controls in the early 1980s instead of selling FANUC products. This development marked a decisive turning point and meant that FANUC had to restructure its sales and support structures in Europe. Siemens’ resources were no longer available. At the same time, robotics gained enormous importance, especially in highly industrialized countries such as Germany, where industrial robots quickly attracted a great deal of interest.
J-BIG: Who were among the first major customers?
Ralf Winkelmann: General Motors Europe, without a doubt. GME and FANUC had close ties due to their history; as an early adopter, GM had already been using FANUC robots in the 1980s. From the 2000s onwards, GM even used only FANUC robots. At that time, our customers were primarily in the automotive industry, with GME at the forefront.
The decisive breakthrough in Germany came when we were able to secure Volkswagen as a customer. We completed our first project in 1999, followed by a larger one in 2002/03. However, the most important milestone did not come until 2010, when FANUC received its first order for several thousand robots from the German automotive industry.
J-BIG: What were the most important growth drivers for FANUC?
Ralf Winkelmann: There are two major drivers: firstly, the automotive industry with its large production volumes and, secondly, electronics manufacturing. Mobile phone and laptop manufacturers in China suddenly began to automate their production – similar to what happened with car manufacturers over here. In the electronics industry, the focus was less on robots and more on our ROBOMACHINES W – especially the ROBODRILLs. These machines were ideal for fast, cost-efficient production in large quantities. And thanks to its automated manufacturing, FANUC was able to deliver exactly that.
J-BIG: Where does FANUC stand globally today?
Ralf Winkelmann: We have a turnover of around five billion euros and employ more than 9,000 people. But what is particularly exciting is the growth of the installed base: it took us 25 years to install the first 500,000 robots – and only a few years to get to a million. The time it took to double the installed base has been getting shorter and shorter. We delivered our millionth robot a long time ago and have manufactured over five million CNC units. FANUC has more than 270 subsidiaries worldwide, serving over 100 countries.
J-BIG: How do you assess the current German market in times of industrial change?
Ralf Winkelmann: The market is undoubtedly in a state of upheaval. The German automotive industry and mechanical engineering – previously the industrial heart of the country – are under pressure. But I also see this as an opportunity. Many companies are using this moment to reposition themselves and question old structures. This is important because years of success can also lead to complacency.
However, geopolitical uncertainties are currently changing the competitive landscape. Uncertainties in the US and China make Europe a relatively safe investment location for companies. Even though we are currently in a challenging phase, the outlook is positive.
J-BIG: Where do you see growth potential in the next five years?
Ralf Winkelmann: I don’t expect the industry to undergo any drastic structural changes by 2030 – at least not in the automotive, plant engineering, and mechanical engineering sectors. But new products and manufacturing technologies will certainly emerge. I see automation as a clear growth market in areas that previously required a high level of manual labor. Examples include final assembly in automotive plants, aviation, the pharmaceutical and food industries, and even skilled trades.
Thanks to collaborative robotics and AI-supported systems, we can now efficiently automate processes that until recently were considered impossible to automate. Such solutions are becoming increasingly important, especially in view of the shortage of skilled workers.
J-BIG: How does the collaboration with the Japanese headquarters work?
Ralf Winkelmann: All core products still come from Japan. Inaba placed great emphasis on close integration between development and manufacturing to ensure that products could be manufactured automatically right from the start. Nothing has changed in this strategy, and it has proven its worth: When supply chain problems arose three or four years ago during the coronavirus pandemic, FANUC was able to switch production in Japan in a very short time so that unavailable components could be replaced. This is only possible when development and production work closely together.
In terms of organization, we are very independent in Germany. Within the framework set by FANUC Europe Corporation, we make our own decisions and have relative freedom in determining our business development. Investments are coordinated closely with FANUC Europe Corporation. Business and market developments are discussed and reviewed in regular meetings with European and Japanese management.
Japan is known for working strongly within its own structures. Overcoming these barriers is very difficult for many companies – but not for FANUC. Since its inception, FANUC has relied on international partners and foreign markets. The technological wishes of European – and especially German – customers are always heard at our headquarters.
Thanks to our expat program, we also have a fast and direct line to Japan. Our Japanese colleagues spend several years in Europe and bring local perspectives back to headquarters. We are currently welcoming the fourth generation of expats to our company. This greatly strengthens mutual understanding. I think it’s a very positive development.
J-BIG: What role does the founder Seiuemon Inaba still play in the company today?
Ralf Winkelmann: Inaba was a strong leader with a clear vision for the future of robotics and control technology. In order to implement this vision, FANUC has always had extremely high quality standards. As a result, the culture around mistakes at FANUC used to be very strict: mistakes were not forgiven and were never allowed to be made twice.
From today’s perspective, that sounds very harsh, but older employees who experienced this period themselves emphasize the positive aspects: it motivated you to reflect on yourself, to focus, and thus to work more efficiently. The principle of learning from mistakes and not repeating them still exists today, although the culture around mistakes is less rigid.
J-BIG: Is there a goal you would still like to achieve personally with FANUC Germany?
Ralf Winkelmann: Absolutely: I want FANUC to become the market leader in all areas – robotics, machines, and controls.
