Factors behind international relocation and changes in production geography in the European automobile components industry
This article analyses business strategies in the automobile sector to determine the key factors behind production relocation processes in automobile components suppliers. These factors help explain changes in production geography in the sector not only in terms of location advantages but also from a perspective of corporate strategies and decision-making mechanisms within firms. The results obtained from an empirical study in Spain during the period 2001-2008 show how the components sector has used relocation to meet the requirements for efficiency imposed by automobile manufacturers. The search for lower labour costs, production concentration and specialisation in order to obtain economies of scale and improved productivity are found to be the main factors determining relocation in the sector. These processes are facilitated by the operational flexibility of the multinational firms that dominate the sector which allows them to transfer resources internationally. Lean supply, technological requirements for production processes and the integration of production plants in the institutional environment are the main barriers to such processes of mobility, and may also determine the geographical destination of migrated production.
|Date of creation:||2013|
|Contact details of provider:|| Postal: Carrer del Tinent Coronel Valenzuela 1-11, 08034 Barcelona|
Phone: 93 403 46 46
Fax: 93 403 98 32
Web page: http://www.ieb.ub.edu
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thomas H. Klier & James M. Rubenstein, 2006. "Competition and trade in the U.S. auto parts sector," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Jan.
- Wan-Wen Chu, 2011. "How the Chinese government promoted a global automobile industry," Industrial and Corporate Change, Oxford University Press, vol. 20(5), pages 1235-1276, October.
- Yannick LUNG (GRES-IFReDE-E3i and GERPISA), 2003.
"The changing geography of the European automobile system,"
Cahiers du GRES (2002-2009)
2003-10, Groupement de Recherches Economiques et Sociales.
- Yannick Lung, 2004. "The changing geography of the European automobile system," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 4(2/3), pages 137-165.
- Yannick Lung, 2004. "The Changing Geography of the European Automotive System," Post-Print hal-00244036, HAL.
- Marie-Claude Belis-Bergouignan & Gerard Bordenave & Yannick Lung, 2000. "Global Strategies in the Automobile Industry," Regional Studies, Taylor & Francis Journals, vol. 34(1), pages 41-53.
- Motta, Massimo & Thisse, Jacques-Francois, 1994.
"Does environmental dumping lead to delocation?,"
European Economic Review,
Elsevier, vol. 38(3-4), pages 563-576, April.
- Jean-Bernard LAYAN & Jean-Bernard LAYAN, 2007.
"Les Nouvelles Configurations De L'Espace Automobile Méditerranéen,"
Region et Developpement,
Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 25, pages 157-176.
- Jean-Bernard Layan & Yannick Lung, 2007. "Les nouvelles configurations de l'espace automobile méditerranéen," Post-Print hal-00150689, HAL.
- Jean-Bernard LAYAN (GREThA-GRES) & Yannick LUNG (GREThA-GRES), 2008.
"Attractiveness and agglomeration of automotive industry in Morocco and Tunisia: A comparative analysis (In French),"
Cahiers du GRES (2002-2009)
2008-14, Groupement de Recherches Economiques et Sociales.
- Jean-Bernard LAYAN (GREThA UMR CNRS 5113) & Yannick LUNG (GREThA UMR CNRS 5113), 2008. "Attractiveness and agglomeration of automotive industry in Morocco and Tunisia: A comparative analysis (In French)," Cahiers du GREThA 2008-20, Groupe de Recherche en Economie Théorique et Appliquée.
- Leo Sleuwaegen & Enrico Pennings, 2006. "International Relocation Of Production: Where Do Firms Go?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(4), pages 430-446, 09.
- Vincent Frigant, 2009. "Winners and losers in the auto parts industry: trajestories followed by the main First Tier Suppliers over the past decade," Post-Print hal-00395403, HAL.
- Vincent Frigant & Jean-Bernard Layan, 2009. "Modular production and the new division of labour within Europe: the perspective of French automotive parts suppliers," Post-Print hal-00381341, HAL.
When requesting a correction, please mention this item's handle: RePEc:ieb:wpaper:2013/6/doc2013-16. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.