Wirtschaftsgeographie, Arbeit über geographische Verteilung und Dynamik sowie den Einfluss von betriebswirtschaftlichen Organisation- und Produktionsformen auf die geographische Verteilung der Automobilindustrie. Blick auf portugiesische Automobilindustrie
Table of Contents
1. Introduction
2. The European automobile industry in global markets
2.1 Output
2.2 Global trade and its affect on Europe
2.3 The influence of demand on automobile industry
3. Technological change, changing of production and changing of organization of production
3.1 From craft Production to mass production
3.2. Lean Production in Europe
3.3 Strategic Alliances and collaborations
3.4 Greenfield Investment
4. Jobs in automobile Industry
4.1. Labour force
4.2. Structure of labour
Objectives and Research Themes
This paper examines the structure, evolution, and ongoing challenges within the European automobile industry, specifically focusing on how global market dynamics, technological shifts, and organizational changes impact production and labor. The research explores the industry's transition from traditional mass production to lean manufacturing and strategic global alliances, while evaluating the socio-economic implications for the workforce.
- The influence of globalization on production activity and foreign direct investment.
- Market trends, overcapacity issues, and the impact of business cycles on demand.
- Technological transformations from craft production to lean and flexible systems.
- Strategic alliances, R&D cost-sharing, and the role of greenfield investments.
- The restructuring of labor forces and changing workforce requirements in the European Union.
Excerpt from the Book
3.4 Greenfield Investment
The case of AutoEuropa is like Nissan in the Northeast region in the UK an example for a Greenfield investment strategy in European periphery. Government are often willing to give high promotion to industrial policy to seek investment, which offers jobs and knowledge. Greenfield investments seem to bring a demonstration effect for surrounding areas. Greenfield investments seem to have several advantages like low corporate and personal taxation rates, low labour cost and social cost a deregulated labour utilisation, a entrance to European Unions’ market, high labour quality and flexibility and mostly high government promotions. Therefore huge parts of Greenfield projects are often paid by the government and so by tax payers (Pike & Vale 1996, p.98s).
A problem about Greenfield investment is its high investments into new production facilities and infrastructure increase expenditure in proportion of output growth. Automobile industry has an enormous overcapacity and its sales depend strongly on economic cycles. In Greenfield plants job growth is often smaller than announced before because production never will use its full capacity:
“The initially stated objects regarding employment and production were not achieved. In fact, the forecast creation of 5,000 jobs generated by the company and a production output of 180,000 vehicles a year were not achieved (the volume was only around 50,000 vehicles in 1995, although only by the end of the decade the production should be reached” (Pike & Vale 1995, p.112).
Summary of Chapters
1. Introduction: This chapter establishes the automobile industry as a key economic sector of the 20th century and outlines the scope of the study regarding the European automotive market.
2. The European automobile industry in global markets: This section analyzes historical production trends, the impact of international trade, and the sensitivity of the market to consumer demand and business cycles.
3. Technological change, changing of production and changing of organization of production: This chapter details the evolution of production systems, specifically the shift from craft and Fordist mass production to lean manufacturing and the rise of strategic alliances.
4. Jobs in automobile Industry: This section investigates how industrial restructuring and overcapacity have impacted employment levels and the structural composition of the labor force within European plants.
Keywords
Automobile Industry, Europe, Lean Production, Globalization, Greenfield Investment, Employment, Strategic Alliances, Market Demand, Overcapacity, Mass Production, Labour Force, Industrial Policy, R&D, Trade Surplus, Business Cycles.
Frequently Asked Questions
What is the primary subject of this publication?
The paper provides an overview of the European automobile industry, detailing its structural transformation in the context of globalized markets and technological advancements.
What are the central thematic fields covered?
The study covers production output, global trade dynamics, the impact of demand on industry strategy, technological transitions in manufacturing, and the socio-economic evolution of the workforce.
What is the main goal or research question?
The goal is to illustrate the advantages and problems facing the European automotive sector and to analyze how producers adapt their structures and production systems to remain competitive globally.
Which scientific method is applied?
The paper utilizes a descriptive and analytical approach, synthesizing existing economic literature, industry data, and case studies to draw a panorama of the industry's status.
What is covered in the main body of the work?
The main body focuses on the evolution of production systems (craft, mass, and lean production), the role of R&D and strategic alliances, and the impact of industrial rationalization on employment.
Which keywords define this work?
Key terms include European automobile industry, Lean Production, globalization, Greenfield investment, employment, and market overcapacity.
How does the author view the future of the AutoEuropa project?
The author expresses concerns regarding the long-term security of the project, noting that it faces potential challenges due to the enlargement of the EU toward the East and the maturity of its production facilities.
Why are "Greenfield investments" often considered a double-edged sword?
While they offer advantages like government subsidies and market entry, they often fail to meet initial employment forecasts and contribute to long-term overcapacity issues, especially if economic demand does not meet expectations.
- Quote paper
- Johannes Edelhoff (Author), 2004, The European Automobile Industry, Munich, GRIN Verlag, https://www.grin.com/document/128175
