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Responses to a crisis: FASA-Renault in Spain during the 1970s

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  • Tomas Fernandez-de-Sevilla

    (Universitat de Barcelona)

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    Abstract

    This paper analyses the trajectory of the Spanish automobile firm FASA-Renault during the 1970s. This period comprises the early years of the crisis experienced by the Spanish economy and industry between 1974 and 1985. At the external level, the Spanish economy was affected by two oil shocks. At an internal level, the automobile industry was affected by a decree passed by the government: the so-called Ford decree of 1972, which allowed the establishment of the American company in Spain and had serious consequences for SEAT, the main Spanish producer. The production of SEAT suffered a one third reduction between 1972 and 1980 and, in addition, the financial situation of the firm was unsustainable. Conversely, during this stage FASARenault became the main Spanish production (its outpout was multiplied by 3,5 during the 1970s) and sales leader in Spain (its sales as percentage of total Spanish market sales increased from 23 to 36%). The main aim of this paper is to analyse the trajectory of success of FASA-Renault in Spain durig the 1970s.

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    Bibliographic Info

    Paper provided by Universitat de Barcelona. Espai de Recerca en Economia in its series Working Papers in Economics with number 261.

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    Length: 0 pages
    Date of creation: 2011
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    Handle: RePEc:bar:bedcje:2011261

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    Postal: Espai de Recerca en Economia, Facultat de Ciències Econòmiques. Tinent Coronel Valenzuela, Num 1-11 08034 Barcelona. Spain.
    Web page: http://www.ere.ub.es
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    1. Chang, Ha-Joon, 1993. "The Political Economy of Industrial Policy in Korea," Cambridge Journal of Economics, Oxford University Press, vol. 17(2), pages 131-57, June.
    2. Jenkins, Rhys, 1995. "The Political Economy of Industrial Policy: Automobile Manufacture in the Newly Industrialising Countries," Cambridge Journal of Economics, Oxford University Press, vol. 19(5), pages 625-45, October.
    3. Alfred D. Chandler, 1992. "Organizational Capabilities and the Economic History of the Industrial Enterprise," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 79-100, Summer.
    4. Sako, Mari, 1996. "Suppliers' Associations in the Japanese Automobile Industry: Collective Action for Technology Diffusion," Cambridge Journal of Economics, Oxford University Press, vol. 20(6), pages 651-71, November.
    5. Taiichi Ohno, 1982. "How the Toyota Production System was Created," Japanese Economy, M.E. Sharpe, Inc., vol. 10(4), pages 83-101, July.
    6. Jordi Catalan, 2010. "Strategic policy revisited: The origins of mass production in the motor industry of Argentina, Korea and Spain, 1945-87," Business History, Taylor & Francis Journals, vol. 52(2), pages 207-230.
    7. Sako, Mari, 1999. "From Individual Skills to Organizational Capability in Japan," Oxford Review of Economic Policy, Oxford University Press, vol. 15(1), pages 114-26, Spring.
    8. Tomas Fernandez de Sevilla, 2010. "Renault in Spain: From assembly to manufacture, 1961-72," Business History, Taylor & Francis Journals, vol. 52(3), pages 471-492.
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