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The internationalisation of the automobile industry and the roles of foreign subsidiaries

Author

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  • Marcos Amatucci
  • Fábio Luiz Mariotto

Abstract

This study analyses the change in the roles of Brazilian subsidiaries of automotive multinational corporations, specifically those that have developed products in Brazil. The main goal is to offer a causality hypothesis for the reasons why subsidiaries of the same sector in the same country have different roles in their corporations after developing engineering capabilities for innovation. The analytical framework involves a discussion of subsidiary development and the degree of internationalisation of each company. The study was carried out between 2007 and 2009 at five Brazilian subsidiaries: Renault, General Motors, Volkswagen, Fiat, and Ford. The results suggest that these subsidiaries occupy a continuum of corporate roles that vary from global centre of excellence (CoE) to local implementer, with intermediate categories. The construction of an explanatory hypothesis results in a ten-step model for the internationalisation process of the auto industry.

Suggested Citation

  • Marcos Amatucci & Fábio Luiz Mariotto, 2012. "The internationalisation of the automobile industry and the roles of foreign subsidiaries," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 12(1), pages 55-75.
  • Handle: RePEc:ids:ijatma:v:12:y:2012:i:1:p:55-75
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    Cited by:

    1. Conroy, Kieran & Gammelgaard, Jens & Jooss, Stefan, 2023. "Operating in the middle-power position: Conceptualising the role of regional headquarters through loaned and owned power," International Business Review, Elsevier, vol. 32(5).
    2. Martín Obaya, 2015. "Technological learning in MNC subsidiaries operating in regional integration processes: a case study on an automotive company in MERCOSUR," Globelics Working Paper Series 2015-02, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management.

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