The Changing Face of the European Periphery in the Automobile Industry

The automotive sector is often presented as a ‘globalized industry’: the governance of the valuechain is largely internationalized with a key role for global players (Freyssenet and Lung, 2000) who are dominant in both motor vehicle production (OEM) and component manufacturing (OES). As a matter of fact, the internationalization of the auto industry rather reflects a process of regionalization. Despite some cars being sold on a global scale, the contemporary development of the sector is largely based on regional markets, the products being differentiated between poles of the triad (North America, Europe, Japan) and even emerging markets, and on a regional division of labour within and between automotive firms in design, manufacture and sales of these regional products (Carrillo et al., 2004).