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Three uncertainties looming over the European auto industry

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  • Vincent FRIGANT (GREThA, CNRS, UMR 5113)

Abstract

The European automotive industry has once again entered a period of uproar. The crisis of 2008/2009 is far from over but probably marks the start of a new era that some observers are starting to refer to as the second automobile revolution. In this article, we will be trying to emphasize three major uncertainties that weigh upon the European automotive industry. The first relates to the future products that the sector is looking to manufacture and sell. This will involve questions about electric vehicles but also how internal combustion vehicles might be sold to more tone-deaf European consumers. The second section will revisit the outsourcing strategies that have arisen over the past 30 years, together with their increasingly obvious limitations. The final section will highlight the profound geographic recomposition that has taken place under our eyes over the past decade or so, and which speaks directly to the issue of Old Europe’s productive capacities in the future.

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Bibliographic Info

Paper provided by Groupe de Recherche en Economie Théorique et Appliquée in its series Cahiers du GREThA with number 2011-34.

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Date of creation: 2011
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Handle: RePEc:grt:wpegrt:2011-34

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Keywords: Automobile industry; electric vehicles; industrial architecture; carmakers; industrial geography; first tier suppliers;

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  1. David Sadler, 1999. "Internationalization and Specialization in the European Automotive Components Sector: Implications for the Hollowing-out Thesis," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 109-119.
  2. Peter Nolan & Jin Zhang & Chunhang Liu, 2008. "The global business revolution, the cascade effect, and the challenge for firms from developing countries," Cambridge Journal of Economics, Oxford University Press, vol. 32(1), pages 29-47, January.
  3. Michel Freyssenet, 2011. "The start of a second automobile revolution: corporate strategies and public policies," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2011(2), pages 69-84.
  4. Vincent FRIGANT (GREThA, CNRS, UMR 5113), 2011. "Egyptian pyramid or Aztec pyramid: How should we describe the industrial architecture of automotive supply chains in Europe?," Cahiers du GREThA 2011-27, Groupe de Recherche en Economie Théorique et Appliquée.
  5. Thomas Klier & James Rubenstein, 2008. "Who Really Made Your Car? Restructuring and Geographic change in the Auto Industry," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wrmyc, December.
  6. Aldo Enrietti & Pier Paolo Patrucco, 2011. "Systemic innovation and organizational change in the car industry: electric vehicle innovation platforms," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2011(2), pages 85-106.
  7. Gary Herrigel, 2004. "Emerging Strategies and Forms of Governance in High-Wage Component Manufacturing Regions," Industry and Innovation, Taylor & Francis Journals, vol. 11(1-2), pages 45-79.
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