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Hybrids, diesel or both? The forgotten technological competition for sustainable solutions in the global automotive industry

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  • Christian Berggren
  • Thomas Magnusson
  • Dedy Sushandoyo

Abstract

Rising fuel prices and tightening regulations to curb greenhouse gases and other emissions have changed the parameters of competition in the global automotive industry, introducing new uncertainties, increased variation and technological turbulence. Many studies focus on the potential performance of 'alternative technologies', from fuel cells to battery electric cars. This paper starts from the other end: the competition unfolding in the real marketplace between today's most important fuel-saving technologies: the 'new' gasoline hybrid electric vehicle versus the 'old' but continuously evolving diesel power train. In the paper, these technological options are related to the evolution of the European and US markets and the innovation and sourcing strategies of Japanese and European manufacturers. A central finding is that the advent of the hybrid power train has intensified technological competition within the industry, but that it stands no real chance of replacing the evolving diesel in the foreseeable future. However, the competitiveness of technological trajectories must be distinguished from the fate of the firms engaged in these technologies. The paper ends with a discussion of the key factors influencing the outcome of this technology contest between the leading Japanese and European manufacturers.

Suggested Citation

  • Christian Berggren & Thomas Magnusson & Dedy Sushandoyo, 2009. "Hybrids, diesel or both? The forgotten technological competition for sustainable solutions in the global automotive industry," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 9(2), pages 148-173.
    • Handle: RePEc:ids:ijatma:v:9:y:2009:i:2:p:148-173
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    Citations

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    Cited by:

    1. Berggren, Christian & Magnusson, Thomas, 2012. "Reducing automotive emissions—The potentials of combustion engine technologies and the power of policy," Energy Policy, Elsevier, vol. 41(C), pages 636-643.
    2. Thomas Magnusson & Viktor Werner, 2023. "Conceptualisations of incumbent firms in sustainability transitions: Insights from organisation theory and a systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 32(2), pages 903-919, February.
    3. Silvio M. Brondoni, 2012. "Ouverture de 'Innovation Management in Global Markets - 2'," Symphonya. Emerging Issues in Management, University of Milano-Bicocca, issue 2 Innovat, pages 1-12.
    4. G. Filatrella & N. De Liso, 2019. "Predicting one type of technological motion? A nonlinear map to study the 'sailing-ship' effect," Papers 1912.11250, arXiv.org.
    5. Bergek, Anna & Berggren, Christian, 2014. "The impact of environmental policy instruments on innovation: A review of energy and automotive industry studies," Ecological Economics, Elsevier, vol. 106(C), pages 112-123.

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