A TECHNICAL NOTE ON RECENT TRENDS IN THE WORLDWIDE CAR

FABRICATING INDUSTRY AND SUGGESTIONS FOR DEVELOPING

NATIONS

M. MOHAMED LUKHMAN 1, P. SADEES 2, M. MURALI 3

Assistant professor 1, 2, 3 , Karpagam Institute of Technology 1,2, karpagam College of Engineering 3

m.m.lukhman@gmail.com1, pg.sadees@gmail.com 2 , muraliprabu007@gmail.com 3

Abstract

This audit investigates the writing examining late worldwide patterns in the car producing segment,
especially in creating nations. The part of globalization has been a hidden variable in a few key
patterns: The movement from west to east as far as creation and utilization; the centralization of the
store network, with a modest bunch of firms picking up control of the vast majority of the business; a
more noteworthy circulation of generation exercises the world over, including local and nearby
markets; and the convergence of advancement exercises in the created nations. Key patterns in
creating nations incorporate proceeding with liberalization and globalization, expanded remote
venture and possession, and the expanding significance of take after source and take after
configuration strengths. Vast creating nations have pulled in more noteworthy minimum amount for
generation and nearby item adjustment. Littler creating nations expanded their generation limit yet
not their advancement limit. Creating nations circumscribing vast markets turned out to be minimal
effort generation center points with lower levels of mechanical redesigning. Innovative exchange has
progressively been encouraged through the buy of information concentrated resources in created
nations. The worldwide budgetary emergency has largely affected the business, especially for created
nations. Be that as it may, creating nations have for the most part been less influenced. For most
creating nations, the essential impact was an increasing speed of the worldwide business sector shift,
and also the quickened union of the inventory network. The pattern of creating nation firms buying
learning escalated industry resources from created nations likewise quickened.

Keywords: Automotive, worldwide patterns, creating nations.

INTRODUCTION

India is domestic to a full-size automotive global stage. To better recognize those

manufacturing sector this is an increasing
number of included with the worldwide
automobile industry, and as a result an
increasing number of laid low with
modifications which can be taking location at a
developments and the way they will impact on
India, this assessment explores the literature
investigating current international trends in the
sector, mainly in developing international
locations. some core assets without delay
address recent tendencies within the
international car quarter, as an instance
Sturgeon, Memedovic, Van Biesebroeck, and
Gereffi’s paper, ‘Globalisation of the automotive
enterprise: predominant features and trends’
(2009). other papers have a worldwide approach,
however are focused on one precise component
of the industry. for example, enterprise reviews
by Powers (2011) and KPMG (2011) are focused
on global production marketplace shifts, and the
PRTM look at by means of Ostermann and Neal
(2009) is centered on worldwide structural
adjustments in the supply base of the industry.
The large majority of papers addressing the
automobile sector have a nearby or country wide
recognition. enormously few papers appearance
in particular on the car quarter in growing
nations as a collection. these consist of Barnes
and Morris (2008), Canbolat et al. (2007),
Humphrey and Memedovic (2003), Ivarsson and
Alvstam (2005), Lall and Teubal (1998), and
Noorbakhsh et al. (2001). any other set of papers
is specifically concerned with the aftermath of
the worldwide economic and financial disaster of
2008/2009, as an instance Sturgeon and Van
Biesebroeck(2010), Ostermann and Neal (2009)
and Wad (2010). The conceptual frameworks and
explanatory theories applied in this literature
range significantly. a few papers are embedded
inside the talents approach (Lall, 1992, 2003;
Lundvall, 1992), with a unique hobby in
relationships among local abilties, Multinational
agencies (MNCs), era switch, technological
upgrading, and innovation. associated with this
are papers with a focus, either implicit or
explicit, on absorptive capacities (Cohen and
Levinthal, 1989; Crisculo and Narula, 2008;
Girma, 2005; Kneller, 2005; Kneller and Stevens,
2006; and Leahy and Neary, 2007). Examples
right here consist of Birchall et al. (2001),
Ivarsson and Alvstam (2005), and Lall and
Teubal (1998). but, maximum center readings
utilize global cost chain (GVC) theory and
international production community (GPN)
concept (Gereffi, 2005) Examples here include
Sturgeon and Van Biesebroeck (2010),
Rutherford and Holmes (2008) and Wad (2010).
different papers use exclusive theoretical gear, or
use little or no principle in any respect. The
overview consequently consists of generally the
empirical components of those papers, instead of
drawing on their contribution to concept.
This paper is organized as follows: key
capabilities and tendencies inside the
international automobile manufacturing area;
focus on the traits in growing international
locations; effect of the economic crisis;
evaluations of the destiny prospects for the
enterprise; dialogue and conclusions.
LATEST TRENDS IN AUTOMOTIVE
SCENARIO
Sturgeon et al. (2009) offers a treasured overview
of key functions and contemporary traits within
the international automobile area. Their place to
begin is a comparison among the automobile
region and other manufacturing sectors. In a few
respects, the car enterprise shares several
features with different production sectors.
foreign direct investment (FDI), international
manufacturing and cross-border exchange have
expanded at an accelerating price since the late
Eighties, facilitated through trade and funding
liberalization thru world change corporation
(WTO) agreements. big emerging economies
such as India, China and Brazil provide big
actual and potential markets, and have a big
surplus of low value labour. Those elements
have encouraged massive FDI flows into these
countries, with the aim of offering local markets
and additionally exporting returned to advanced
international locations. another commonplace
feature is an boom in outsourcing and an
increase in fee chain activities within supplier
companies. providers from developed nations
have multiplied their degrees of FDI and
exchange, at the same time as providers from
growing international locations have increased
their talents. the most important providers have
end up global providers (Sturgeon and Lester,
2004).
Different features of the worldwide car
enterprise are exceptional. firstly, the industry
has a rather focused firm structure, wherein a
handful of big main companies workout manage
over their global supply chains. 11 assemblers
from the usa, european Union and Japan
dominate international manufacturing. attention
amongst assemblers and large first tier providers
became superior with the aid of mergers,
acquisitions, and equity-based alliances at some
point of the Nineties. final meeting, and to a
degree components manufacturing, has been
stored near end markets due to each political and
value factors. the long-lasting status of the car
sector method that a political backlash can end
result when local manufacturers are threatened
by means of imports, and powerful nearby lead
corporations and unions often have political
sway. In terms of fee elements, many automotive
additives, along with chassis or seats, are highly-
priced to transport, and there has traditionally
been an inclination for heavyweight subsystems
to be constructed near assemblers and stop
markets (Sturgeon and Florida, 2000).
Additionally, the imperatives of lean production
and car customization favour geographical
proximity to providers. hence, even though the
industry has globalized rapidly because the early
1990s, a feature regional structure to global
manufacturing has additionally emerged. This
paperwork a evaluation with many other
production sectors, for instance clothing and
electronics, where integration has in general
been at the global scale.In the car area, unlike
many different business sectors, there are few
fully regularly occurring components or
structures that may be utilized in a big range of
merchandise without customization: automobile
layout requires customization due to the
excessive stage of inter-relationships within the
performance characteristics of components that
fluctuate for every version. overall performance
aspects inclusive of noise, vibration and
managing are strongly inter-associated, and it's
far tough to evaluate how the interactions
between components will have an effect on these
aspects earlier; as a result customization is
commonly required which will obtain
performance requirements. the overall end result
is that there are relatively few standardized parts
for the automotive industry (in comparison to
other industries), and specs are developed for
nearly every part on every car model. This
creates boundaries to the design of platforms.
The sharing of vehicle platforms is limited to
models and brands owned through the identical
lead company. Fee chain modularity is as a
consequence undermined, and suppliers come to
be tied to lead firms. This boundaries economies
of scale (in production) and economies of scope
(in layout), and has adverse outcomes at the
deliver chain. since providers are regularly the
simplest source of a specific thing, there may be
a need for near collaboration, which in turn
raises costs for those suppliers who serve
multiple assemblers, and which also results in a
attention of innovation and layout inside a few
geographic clusters near the headquarters of
assemblers and big tier 1 providers, considering
the fact that there is less modularity inside the
value chain, assemblers exercising more power
over suppliers via relational or captive linkages.
This renders a global organizational structure
that distributes innovation and manufacturing-
centrally designed cars are tailored for
neighborhood markets, and elements are
synthetic in a couple of areas, and each layout
and cost chain relationships commonly cowl
several manufacturing regions. on this way
nearby, national and local fee chains are ‘nested’ illustrated in Sturgeon et al. (2007) (figure 1).
within international organizational structures, as

Fig 1: nested representation of automobile industry

In parallel to the formation of worldwide market
systems, key structural capabilities of each
manufacturing and sales have remained notably
regionalized, with predominant American and
eu assemblers nevertheless producing and
promoting maximum of their automobiles within
their very own regions (in 2006), despite the fact
that this structure is being eroded by means of
increasingly international markets.
In spite of growing globalization, regional,
national and nearby market situations have
remained vital. nearby conditions necessitate
neighborhood diversifications, which influences
at the understanding requirements for
neighborhood models, neighborhood
production, and nearby innovation sports. these
Table 1: Motor automobile manufacturing in selected nations, 1996 to 2006, in 000 gadgets and in growth%
nearby situations encompass customer tastes and
buying energy, avenue and driving situations,
labour market regulations, standards and
enterprise guidelines, and public regulations
along with incentives, taxation, tariffs, and other
instruments of industrial policy. Consumers in
advanced international locations are extra
traumatic in terms of specific functions; they use
roads and gasoline of superior satisfactory, and
face higher regulatory, legislative and
environmental requirements. Specific business
policies vary among countries, but had been
proven to create call for unique automobiles
(Humphrey and Memedovic, 2003) (Tables 1 and
a pair of).

COUNTRIES 1996 1998 2000 2002 2005 2010 GROWTH(%)

India 541 535 867 892 1,511 1,876 13.2

China 1,240 1,628 2,009 3,251 5717 7272 19.3

Republic of 2,354 1,787 2,858 3148 3469 3,840 5.0
korea
France 2,359 2,923 3352 3693 3,666 3164 3.0
Brazil 1,813 1,547 1,671 1,793 2,210 2,597 3.6

Mexico 1,222 1,460 1,923 1,805 1,555 2,043 5.3

Germany 4,843 5,727 5,527 5145 5,570 5,818 1.8
Table 2: production and sales of motor vehicles

Company Region Regions share in global

production (%)

1998 2010
General motor America 69 50
Ford America 67 43
Daimler America 58
Renault Europe 91 75
Psa Europe 85 70
Volkswagen Europe 62 66
Fiat Europe 60 55

A key trend in the evolution of automotive GVCs
during the last decades has been the formation
of huge global suppliers that help numerous
assemblers via international manufacturing
networks, regularly through global sourcing
contracts. the largest first-tier providers, via
taking an an increasing number of massive
function in innovation, manufacturing, and the
allocation of investment, have assumed a bigger
degree of strength within the deliver chain,
however control largely remains within the arms
of the assemblers. within global value-chains,
providers have increased their share of fee
adding, along with their contributions to R and
D and innovation activities (Becker, 2006;
Birchall et al., 2001; Chanaron and Rennard,
2007; Osterman and Neal, 2010). The awareness
of electricity inside some lead companies creates
excessive obstacles to entry and limits
potentialities for upgrading by means of smaller
corporations. additionally, the awareness at the
top of the GVC makes it feasible for assemblers
to create unique requirements and specs, which
makes the investments of their suppliers extra
client specific, and further reduces the scope for
innovation among smaller corporations.
The analysis of Rutherford and Holmes (2008)
conceptually separates ‘structural’ from
tangential or ‘actual’ energy within the supply
chain, concluding that the de facto power of
assemblers exceeds even their huge structural
strength because of their monetary assets, their
strategic position within GPNs, and their
relationships with country accumulation tasks.
each assemblers and large transnational
components manufacturers have had their
power positions stronger with the aid of the
restructuring that has taken place over the past
twenty years. deliver chain consolidation has
been speedy: the wide variety of first tier
providers globally become anticipated to fall
from 8,000 in 2002 to around 2,000 through 2010.
Surviving first tier providers now undergo more
obligation for research and development,
shipping of modular subsystems and handling
the general supply chain. Outsourcing
additionally forces providers to tackle extra
danger, and favours suppliers who can innovate,
provide fine, and get right of entry to less
expensive capital. providers, who account for
75% of the synthetic price of a automobile,
represent the assemblers’ largest goal for fee
cutting. This, at the least in the competitive
North American marketplace, can result in
‘pathological’ company behavior throughout the
supply chain, as an instance assemblers shifting
price and threat to providers, sharing dealer
proprietary records with competitors, and the
unilateral implementation of price-discount
goals. those pressures have an effect on the
innovation techniques of providers: stagnating
markets and over-capability lead assemblers to
offer new models, growth layout intensiveness,
and shift more responsibilities for design to
suppliers and engineering companies (Schamp et
al., 2004: 615). A evaluation to the yank firms’
practices may be discovered in Japan, where
corporations such as Toyota and Honda have a
better file of their remedy of suppliers.
Rutherford concludes that the issues facing the
Detroit enterprise lie not handiest with their
monetary role but also within the manner
wherein their management of networks is
undermining their own supply base. Further to a
susceptible economic role and opposed supplier
relations, the trouble of low potential utililisation
continued to undermine profitability at the
global level in the run-as much as the global
economic crisis. Idle capital within the north has
no longer been subjected to innovative
destruction; rather FDI has flowed into growing
international locations, adding new ability so
that general capacity has remained beneath the
‘destroy-even’ factor of eighty five% (Sturgeon
and Van Biesebroeck, 2010). This has decreased
the profitability of OEMs, which in turn has
pressurised their supply chains, forcing many
first-tier suppliers closer to bankruptcy (Barnes
and Morris, 2008). In 2007 only three jap
automakers (Toyota, Honda, and Nissan)
achieved earnings and increase, even as
maximum western automakers skilled falling
market capitalization (Maxton and Womald,
2004: 7). as a consequence, in the run-up to the
financial disaster, automobile manufacturers
were already in a precarious role.
DEVELOPMENTS IN THE AUTOMOBILE
AREA IN DEVELOPING NATIONS
A literature that focuses mainly at the
automotive quarter in developing international
locations is extraordinarily small. Canbolat et al.
(2007) consciousness on latest changes in cost
chain dynamics resulting from globalisation.
Noorbakhsh et al. (2001) awareness on the
connection among neighborhood human capital
and FDI inflows in developing nations, including
inside the automobile region. but, the most
comprehensive analyses can be determined in
Wad (2010), a running paper for United
countries industrial improvement company
(UNIDO), and Sturgeon and Van Biesebroeck
(2010), a world bank working paper. these
reports take a look at the outcomes of the
worldwide economic disaster at the automobile
sector in developing international locations,
together with analyses of pre-disaster traits. both
papers rent a theoretical framework based totally
on GVC concept. Wad (2010) recognized 4 key
trends in developing nations, which mostly
relate to the effect of globalisation and the re-
structuring of GVCs. first of all, the import
substitution industrialisation (ISI) techniques
usually pursued by means of developing
countries modified after the fall apart of the
Union of Soviet Socialist Republics (united states
of america) inside the early Nineties. the
following liberalisation and globalisation formed
the enterprise until the monetary disaster of
2008. automobile MNCs from advanced nations,
both assemblers and huge providers, sought to
obtain economies of scale and scope by using
consolidating into global organizations and
alliances, and through this technique formed
global producer-pushed international price
chains. Joint-task meeting operations in
developing nations commonly became majority
owned by way of MNCs, a process bolstered
through follow sourcing by way of newly
globalised suppliers. a third, related, fashion
changed into that nearby (countrywide)
providers have been in large part relegated to the
second or third tier, or were ‘denationalized’
through foreign acquisition (Humphrey et al.,
1998; Humphrey and Memedovic, 2003; Barnes
and Kaplinsky, 2000; Barnes and Morris, 2008).
Sturgeon and Van Biesebroeck (2010) pick out
exceptional dynamics in special sorts of
developing international locations. firstly, very
large growing international locations, together
with China, India, and Brazil, offer big and
developing markets. it is consequently profitable
and strategically ideal for assemblers to both
produce automobiles specifically for those
market necessities, or to adapt current models to
be used in those markets (Brandt and Van
Biesebroeck, 2008). In those nations, therefore,
assemblers establish facilities for local
headquarters as well as regional design and
innovation centres; this creates stress for lead
providers, mainly the ones related to assemblers
through global observe-sourcing agreements, to
additionally establish local engineering and
innovation talents. This in turn incentivises
worldwide providers to source inputs from
neighborhood 2d tier suppliers. If the
neighborhood market is sufficiently huge and
solid to draw massive investments, it can become
feasible for neighborhood companies to deliver
assemblers without delay, leading to a ‘virtuous
cycle of development’.
A second dynamic characterizes mid-sized
advanced growing countries, mainly people with
a sufficiently huge market to justify nearby
assembly, however not large sufficient to
incentivise nearby model or marketplace-specific
products – examples right here encompass India,
Thailand and Turkey. these international
locations have a tendency to end up assembly
hubs for their areas. assembly brings in follow-
sourcing FDI, in addition to possibilities for local
providers, especially for additives which might
be hard or steeply-priced to import. those sports
can also open up possibilities for export. as an
example, India has a mature meeting area that
advanced capabilities from the primary assembly
of completely imported kits through to local
deliver and worldwide export, and a factor
quarter that makes use of comparative benefits in
leather (for seats), platinum (for catalytic
converters), less expensive labour (for
harnesses), and heavy additives (for wheel hubs,
engine blocks, and other metal-bashing
components).
A 3rd dynamic characterizes growing countries
which might be proximate to big evolved-u . s . a
. markets and may deliver on a JIT basis with a
local change block. Examples here encompass
Mexico (serving North American loose alternate
Agreemen), the Czech Republic (serving the ecu
Union) and Thailand (serving the affiliation of
Southeast Asian countries marketplace). those
countries tend to become hubs for labour-
intensive additives. If skills upgrading occurs,
possibilities can rise up for the manufacturing of
capital extensive parts and even assembly.
however, the proximity to evolved economies
can near off such possibilities.
A fourth dynamic, defined as ‘nascent’, is ‘for
local lead firms to leverage the brand new, rather
open nearby and global deliver-base to rapidly
grow to be more competitive domestically and
perhaps on global markets’ (Sturgeon and Van
Biesebroeck, 2010: eleven). the example of Chery
vehicle is illustrative: extent production of the
Chery logo began in 2001, and through 2007
production had grown to six hundred,000
gadgets, making it China’s largest automobile
exporter. that is a splendid success: The
innovation sports that move into vehicle design
and improvement are expensive and tough to
grasp, with a high degree of tacit knowledge
(Jung and Lee, 2009). New entrants to the
assembly marketplace usually came from related
industries (for example Mitsubishi, Subaru,
BMW and SAAB) in which that they had
constructed up related capabilities, or, inside the
Korean case, emerge from large vertically and
horizontally incorporated country wide
champions.
IMPACT OF SUSTAINABILITY TROUBLES
One essential contemporary trend isn't always
strongly associated with the economic crisis –
that is the trend in the direction of rising
inexperienced technologies. Toyota took the lead
when it started producing the primary
commercially available hybrid electric powered
automobile, the Prius, in 1997. In 2007 one
million gadgets of the Prius were bought, and in
2009 this had accelerated to two million. but,
different manufacturers downplayed the
significance of hybrid vehicles, and best Honda
accompanied in shape with the manufacturing of
a hybrid vehicle in 1999. while the income
figures are small when it comes to Japan’s total
output, they have got performed a position in
sustaining Japan’s automobile change surplus
despite the united states of america’s high salary
and profits tiers. perhaps more importantly, the
key new technology are related to electrical
motors with battery-primarily based propulsion
and plug-in mechanisms. Hybrid or plug-in
electric vehicles are now in production at Toyota,
Honda, Nissan, Ford, GM, Chrysler, Tesla (allied
with Daimler), and BYD (China), and in
improvement at VW, Audi, Porsche, BMW/Mini,
Daimler, clever, PSA, Renault, Mitsubishi,
Subaru, and Tata (Tables 1 and a couple of).
In developing nations, the promotion of
inexperienced technologies has considerable
history. Brazil has, through a aggregate of law
and innovation, become a world leader in
ethanol biofuel technology. China, in 2003,
initiated a country wide environmental
programme that included the purchase of hybrid
motors with the aid of selected public service
companies, and several huge cities have
tightened their emission rules. however, in India
the merchandising of tighter emissions policies
was hampered by means of full-size corruption
that undermined the satisfactory of the united
states’s gasoline supply.
FUTURE POSSIBILITIES
The car quarter is particularly touchy to the
commercial enterprise cycle, and the short and
medium term prospects of the car enterprise may
be formed by means of the conditions of the
global economic system. even though the
recession is over in many nations, it remains
doubtful whether or not the global financial
system will go back to a length of growth or
whether further structural crises lie beforehand.
What is obvious is that increase possibilities are
greatest in growing countries, and advanced
international locations ought to adapt to this new
direction.
The international Motor vehicle program, a
studies community based at MIT, posted a
function paper in regarding the future
potentialities of the enterprise (Osterman and
Neal, 2009). Theirs changed into an optimistic
role, foreseeing a international economic healing
as a way to encompass a healing of the
automobile industry to pre-disaster degrees,
driven by means of boom in growing countries.
the key points regarding the restoration in
developing nations are: 1. call for for brand
spanking new automobiles is in most cases from
“first automobile” rather than “substitute”
shoppers and is consequently much less clean to
put off, and consequently real call for interprets
into purchases of recent vehicles instead of used
automobiles; 2. financing establishments are
much less advanced and automobile debt is not
as sizeable as in advanced countries; and 3. call
for is greater income-elastic. these elements are
contextualised by relatively low ranges of
automobile ownership in growing international
locations. income growth in these international
locations will as a consequence arguably spur
higher degrees of motorisation.
A forecast by p.c (2009) suggests that the
enterprise will recover in the context of a global
financial healing,but that worldwide
manufacturing will an increasing number of shift
to the east, wherein growth might be maximum–
the Asia-Pacific region is predicted to contribute
extra than 1/2 of all global boom between 2008
and 2013, and via 2013 it's far anticipated that
33.nine million vehicles would be produced
inside the Asia-Pacific location, and 32.5 million
within the european and US combined–a
diagnosis that Wad (2010) considers positive
given high unemployment within the US. the
worldwide crisis also leant momentum to certain
demand trends inside the marketplace. demand
shifted in the direction of smaller and extra
gasoline green vehicles and environmental
troubles have hiked up the political time table.
This has created an opportunity for production
firms from outdoor the automobile industry to
enter the value chain through new technologies–
as an instance the chinese language firm BYD
coming from the battery industry to grow to be
the primary electric car manufacturer in China.
CONCLUSION
The literature addressing the worldwide car
production enterprise shows that globalization
has had a extremely good impact on the industry
within the closing two a long time, and that the
continuing shift from west to east, both in
phrases of production and intake, will keep to re-
form the enterprise. emerging economies
provide massive and growing markets and low
labour charges, and FDI continues to glide to
these locations. Globalization additionally led to
the awareness of strength in the zone, with a
handful of firms gaining manipulate of most of
the supply chain. Globalization has additionally
cause a extra distribution of production activities
around the world, however this stays dependent
alongside the strains of nearby and national
markets that are ‘nested’ within this
international framework. Innovation is also
noticeably concentrated inside this shape,
pushed by way of the shortage of industry-wide
standards, the technical want for personalisation
in car design, and the strategic location of R and
D centers near company headquarters (discern
1).within this context, key tendencies in growing
international locations can be recognized. the 2
decades leading up to the financial disaster in
2008 were ruled by way of a manner of
liberalization and globalization, leading to
expanded overseas investment in and ownership
of automobile manufacturing companies in
growing nations. The search for economies of
scale cause consolidation of the supply chain,
and industries in evolved international locations
had been increasingly based by comply with-
source and observe-design imperatives. these
dynamics played out differently in one of a kind
developing countries, relying on market and
policy forces. massive growing nations inclusive
of India and China attracted greater important
mass for production and local product
adaptation. Smaller developing nations, together
with India, increased their manufacturing ability
however no longer their innovation potential.
Growing countries bordering large markets,
inclusive of Mexico or Turkey, have become low-
fee manufacturing hubs with decrease ranges of
technological upgrading. In numerous nations,
 technological switch turned into increasingly
facilitated thru the purchase of information-in
depth assets in advanced nations. The
worldwide financial crisis has had a large impact
at the enterprise, specifically for evolved
international locations. within the years leading
as much as the disaster, the world skilled low
ability usage and low earnings margins, and
corporations have been as a consequence already
weakly positioned. The chance of collapse results
in government bailouts in numerous advanced
international locations. However, developing
international locations have normally been less
affected, with the exception of heavily export-
REFERENCES
Barnes J, Kaplinsky R (2000). Globalisation and the death
of the local firm? The automobile components sector in
South Africa. Reg. Stud., 34(9): 797-812.
Barnes J, Morris M (2004). The German connection:
shifting hegemony in the political economy of the
South African automotive industry. Ind. Corp. Chang.,
13(4): 789-814.
Barnes J, Morris M (2008). Staying alive in the global
automotive industry: what can developing economies
learn from South Africa about linking into global
automotive value chains? The Eur. J. Dev. Res., 20(1):
31-55.
Becker H (2006). High noon in the automotive industry,
Helmut, Berlin. Birchall DW, Tovstiga G, Chanaron JJ
(2001). Capabilities in strategic
knowledge sourcing and assimilation: a new look at
innovation in the automotive industry. Int. J.
Automotive. Technol. Manage., 1(1): 78-91.
Black A (2009). Location, automotive policy, and
multinational strategy: the position of South Africa in
the global industry since 1995. Growth. Chang., 40(3):
483-512.
Canbolat YB, Gupta G, Matera S, Chelst K (2007).
Analysing risk in sourcing design and manufacture of
components and sub-systems to emerging markets. Int.
J. Prod. Res., 46(18): 5145-5164.
Chanaron JJ, Rennard JP (2007). "The automotive
industry: a challenge to Schumpeter’s innovation
theory" in Re-discovering Schumpeter: creative
destruction evolving into “mode 3”, eds. E. Carayannis
& C. Ziemnowicz, Sage, New York, pp. 320-343.
oriented places including India or Thailand. but,
for most developing countries the number one
effect was an acceleration of the shift of
manufacturing from evolved to growing nations,
as well as the improved consolidation of both
assemblers and their factor dealer bases. The
trend of growing country companies shopping
information-intensive enterprise assets from
evolved international locations also multiplied.
The literature makes it clear that this is a time of
possibility for automobile industries in evolved
nations, and therefore highlights that informed
coverage debate is as essential and well-timed as
ever.
Cohen WM, Levinthal DA (1989). Innovation and
learning: the two faces of R&D. Econ. J., 99(397): 569-
596.
Gereffi G (2005). "The global economy: organisation,
governance and development" in Handbook of
Economic Sociology, eds. S. Smelser, Swedberg R,
Princeton University Press and Russel Sage Princeton,
NJ, pp. 160-182.
Girma S (2005). Absorptive capacity and productivity
spillovers from FDI: a threshold regression analysis.
Oxford. Bull. Econ. Stat., 67(3): 281-306.
Humphrey J, Memedovic O (2003). The global
automotive industry value chain: what prospects for
upgrading by developing countries?
UNIDO Sectoral Studies Series paper, Vienna.
Humphrey J, Mukherjee A, Zilbovicius M, Arbix G
(1998). "Globalisation, foreign direct investment and
the restructuring of supplier neworks: the motor
industry in Brazil and India" in Learning, liberalisation
and economic adjustment, ed. M. Kagami, Institute of
Developing Economies, Tokyo.
Ivarsson I, Alvstam CG (2005). Technology transfer from
TNCs to local suppliers in developing countries: a
study of AB Volvo’s truck and bus plants in Brazil,
China, India, and Mexico,Just-auto. www.just-
auto.com. World Development, 33(8): 1325-1344.
Kneller R (2005). Frontier technology, absorptive
capacity, and distance. Oxford. Bull. Econ. Stat. 67(1):
1-23.
Kneller R, Stevens PA (2006). Frontier technology and
absorptive capacity: evidence from OECD
manufacturing industries, Discussion NIESR Natl.
Institute. Econ. Soc. Res. p.202,
Kneller R, Stevens PA (2006). Frontier technology and
absorptive capacity: evidence from OECD manufacturing
industries, Discussion NIESR Natl. Institute. Econ. Soc.
Res. p.202, KPMG (2011). Global Automotive Executive
Survey.http://www.kpmg.com/Global/en/IssuesAndInsig
hts/ArticlesPublications/Documents/Global-Auto-
Executive-Survey-2011.pdf accessed 8
February 2012.
Lall S (1992). Technological Capabilities and
Industrialization. World Development; 2(2): 165–86.
Lall S (2003). ‘Foreign Direct Investment, Technology
Development and Competitiveness: Issues and Evidence’,
in Lall S, Urata S (eds.), Competitiveness, FDI and
Technological Activity in East Asia, Cheltenham: Edward
Elgar, pp.12–56.
Lall S, Teubal M (1998). "Market-stimulating" technology
policies in developing countries: a framework with
examples from East Asia. World Development, 26(8):
1369-1385.
Leahy D, Neary JP (2007). Absorptive capacity, R&D
spillovers, and public policy. Int. J. Ind. Organiz., 25(5):
1089-1108.
Lundvall B (1992). National Systems of Innovation:
Towards a theory of Innovation and Interactive Learning,
London: Pinter.
Maxton GP, Womald J (2004). Time for a model change.
Reengineering the global automotive industry.
Cambridge University Press, Cambridge.
Noorbakhsh F, Paloni A, Youssef A (2001). Human
capital and FDI inflows to developing countries: new
empirical evidence. World Development; 29(9): 1593-
1610.
Osterman D, Neal B (2009). The global automotive
industry crisis: away ahead. IMVP position paper, IMVP,
MIT, Cambridge, Massachusetts. Power JD and
Associates (2011). Press Release: Global Automotive
Outlook for Appears Positive as Mature Auto Markets
Recover, Emerging Markets Continue to Expand.
http://content2.businesscenter.jdpower.com/JDPAConten
t/CorpComm/News/content/Releases/pdf/2011018-
gao2.pdf accessed 8 February 2012.
PWC (2009). Automotive review: global automotive
review. PWC Automotive Institute., London.
Reichhart A, Holwg M (2008). Co-located supplier
clusters: forms, functions, and theoretical perspectives.
Int. J. Oper. Prod. Manage.,
28(1): 53-78.
Rutherford T, Holmes J (2008). ‘The flea on the tail of the
dog’: power in
global production networks and the restructuring of
Canadian
automotive clusters. J. Econ. Geogr. 8(4): 519-544.
Sadoi Y (2008). Technology transfer in automotive parts
firms in China.
Asia. Pacific. Bus. Rev., 14(1): 147-163.
Schamp E, Rentmeister B, Lo V (2004). Dimensions of
proximity in
knowledge-based networks: the cases of investment
banking and
automobile design. Eur. Plan. Stud., 12(5): 607-624.
Sturgeon T, Lester RK (2004). "The new global supply-
base: new
challenges for local suppliers in East Asia." in Global
production
networking and technological change in East Asia, eds.
Yusuf S, Altaf
A, Nabeshima K, World Bank and Oxford University
Press,
Washington, DC, pp. 35-87.
Sturgeon T, Memedovic O, Van Biesebroeck J, Gereffi G
(2009).
Globalisation of the automotive industry: main features
and trends.
Int. J. Technol. Learn. Innov. Dev. 2(1): 7-24.
Sturgeon T, Richard F (2000). Globalisation and jobs in
the automotive
industry, Afred P. Sloan Foundation, International Motor
Vehicle
Program, Center for Technology, Policy, and Industrial
Development,
Massachusetts Institute of Technology, Cambridge, MA.
Sturgeon T, Van Biesebroeck J (2010). Effects of the crisis
on the
automotive industry in developing countries: a global
value chain
perspective. Policy Research Working, The World Bank,
Washington,
DC, p. 5330.
Sturgeon T, Van Biesebroeck J, Gereffi G (2007). Prospects
for Canada
in the NAFTA automotive industry: a global value chain
analysis,
Industry Canada, Ottowa.
Wad P (2010). Impact of the global economic and
financial crisis over
the automotive industry in developing countries, United
Nations
Industrial Development Organisation (UNIDO) Working
Paper
16/(2009), Vienna.
5905