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Digital upgrade in the automotive supply chain in Mexico: issues and challenges

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Listed:
  • Jorge Carreto Sanginés
  • Pasquale Pavone
  • Margherita Russo
  • Annamaria Simonazzi

Abstract

The ongoing digital transformation poses diverse challenges to the automotive sector. While the process of digitalisation will lead to technical and organisational changes across and within the global value chains, the ongoing changes in the trade agreements spurred by the Trump administration may change the location advantages of previous plants and their specialisations. In addition, investment in the electric car may offer first-mover advantages in markets, while requiring the re-organisation of the value chains. Mexico, ranked in 2018 as the seventh producer at world level, is an important case study for several reasons: among these, its cost advantages, its former privileged access to the US market, that attracted many OEMs from Europe, Asia, the US, and its role in the prospective regionalization of world trade. By using interviews to automotive suppliers, experts and business associations of the automotive industry, the paper aims at providing a first outline on issues to be addressed in an analysis looking at how these changes are affecting opportunities for the OEMs in their value chains based in the Mexican automotive system.

Suggested Citation

  • Jorge Carreto Sanginés & Pasquale Pavone & Margherita Russo & Annamaria Simonazzi, 2019. "Digital upgrade in the automotive supply chain in Mexico: issues and challenges," Department of Economics 0153, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    • Handle: RePEc:mod:depeco:0153
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    References listed on IDEAS

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    1. Susan Helper & Mari Sako, 2010. "Management innovation in supply chain: appreciating Chandler in the twenty-first century," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(2), pages 399-429, April.
    2. Cristiano Antonelli (ed.), 2011. "Handbook on the Economic Complexity of Technological Change," Books, Edward Elgar Publishing, number 13391.
    3. Margherita Russo, 2019. "Digital transformation in the automotive supply chain: China, Germany, Italy and Japan in a comparative perspective," Department of Economics 0151, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    4. Timothy Sturgeon & Johannes Van Biesebroeck & Gary Gereffi, 2008. "Value chains, networks and clusters: reframing the global automotive industry," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 297-321, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    company trajectories (OEMS; global and national suppliers; new entrants etc.); profit strategies and product policies; productive organizations; product architectures; organizations and governance; global and regional value chains; platform economy;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • N66 - Economic History - - Manufacturing and Construction - - - Latin America; Caribbean
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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