Regionalization of the European Automobile Industry, More Than Globalization

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Reference

Freyssenet M. Shimizu K., Volpato G., Conclusion: Regionalization of the European Automobile Industry, More Than Globalization, in Freyssenet M., Shimizu K., Volpato G. (eds), Globalization or Regionalization of European Car Industry?, London, New York, Palgrave-Macmillan, 2003, pp 209-230. Digital publishing, freyssenet.com, 2007, 400 Ko, ISSN 7116-0941.

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Abstract

Although a logic of production (economies of scale) has induced automobile manufacturers to extend their area of commercialisation on a global scale, it is in their articulation with a market, their getting into sync with a demand, that they have incorporated the regional tier as a level at which they can achieve a certain coherency. Except for the prestige automobiles, there are limits to the homogenization of global demand, and the failure of Ford's attempt to integrate its activities globally shows that automobile firms should be looking for more appropriate strategies – and above all, for models or innovative forms of organization that are better adapted to a particular regional space. It is not at all certain that the real challenge is to be the first to globalize- mono-regional strategies (such as the one that PSA has pursued), bi-regional, multi-regional, even trans-regional strategies, all can be relevant at a certain time, and in a given space.

Content

1. Growth modes, profit strategies and productive models
2. The liberalization of capital international movements and the deregulation of labor market
3. A utopian globalization at the core volume strategy
4. The "volume and diversity" strategy: a global commonalization of platforms
and a regional differenciation of models, under certain conditions
4.1. Characteristics, conditions and requirements
4.2. Volkswagen, external growth and european commonalization
4.3. PSA, internal growth and punctual cooperation
4.4. Fiat: emerging markets were not enough
4.5. The dilemma for the "volume and diversity" firms
5. The "quality" profit strategy: a national-based production and a globalized distribution
5.1. Characteristics, conditions and requirements
5.2. The sea change of international top-of-the-range market since the nineties
6. Permanent cost reduction strategy: very restrictive conditions to succeed
7. Innovation and flexibility strategy: a necessary specific regional policy
7.1. Characteristics, conditions and requirements
7.2. Chrysler, an inconstant innovation and flexibility strategy
7.3. The regional renewal of Renault, endangered by the global alliance with Nissan?
7.4. The regional future of innovation and flexibility strategy
Conclusion

Key words

Automobile industry, car makers, globalization, regionalization, internationalization, national growth modes, profit strategy, Europe, Volkswagen, PSA, Renault, Fiat, BMX, DaimlerChrysler, productive models, employment relationships, productive organisation, product policy, company governance compromise, cost reduction, innovation, flexibility, just-in-time, japanese model, lean production, speculative bubble

Concerned disciplines

Economics, Management, Geography, History, Political Science, Sociology.

Writing context

Contribution
to personal questioning
to scientific reflection of research laboratory or network
to national and international scientific debate
to diffusion of scientific results
to implementation of scientific results

References, commentaries, critics

Current relevance

See also

✔ Freyssenet M., Shimizu K., Volpato G. (eds), Globalization or Regionalization of Ameri-can and Asian Car Industry?, London, New York, Palgrave-Macmillan, 2003, 243 p. En anglais par un éditeur anglais en première publication.

✔ Freyssenet M., Lung Y., Foreword, in Freyssenet M., Shimizu K., Volpato G. (eds), Globalization or Regionalization of Ameri-can and Asian Car Industry?, London, New York, Palgrave-Macmillan, 2003, pp x-xii. Digital publishing, freyssenet.com, 2007, 60 Ko, ISSN 7116-0941. En anglais par un éditeur anglais en première publication.

✔ Freyssenet M. Shimizu K., Volpato G., Introduction: The Diversity of Internationaliza-tion Strategies and Trajectories of Automobile Sector Firms, in Freyssenet, M. Shimizu, K., Volpato, G. (eds), Globalization or Regionalization of American and Asian Car Industry?, London, New York: Palgrave, 2003, pp 1-8. Digital publishing, freyssenet.com, 2007, 164 Ko, ISSN 7116-0941. En anglais par un éditeur anglais en première publication.

✔ Freyssenet M. Shimizu K., Volpato G., Conclusion: Regionalization of the American and Asian Automobile Industry, More Than Globalization, in Freyssenet, M. Shi-mizu, K., Volpato, G. (eds), [i]Globalization or Regionalization of American and Asian Car Industry?, London, New York: Palgrave, 2003, pp 209-230. Digital publishing, freyssenet.com, 2007, 400 Ko, ISSN 7116-0941. En anglais par un éditeur anglais en première publication.

✔ Freyssenet M., Shimizu K., Volpato G. (eds), Globalization or Regionalization of Euro-pean Car Industry?, London, New York, Palgrave-Macmillan, 2003, 275 p. En anglais par un éditeur anglais en première publication.

✔ Freyssenet M., Lung Y., Foreword, in Freyssenet M., Shimizu K., Volpato G. (eds), Globalization or Regionalization of Euro-pean Car Industry?, London, New York, Palgrave-Macmillan, 2003, pp x-xii. Digital publishing, freyssenet.com, 2007, 60 Ko, ISSN 7116-0941. En anglais par un éditeur anglais en première publication.

✔ Freyssenet M. Shimizu K., Volpato G., Introduction: The Diversity of Internationaliza-tion Strategies and Trajectories of Automobile Sector Firms, in Freyssenet, M. Shimizu, K., Volpato, G. (eds), Globalization or Regionalization of European Car Industry?, London, New York: Palgrave, 2003, pp 1-8. Digital publishing, freyssenet.com, 2007, 164 Ko, ISSN 7116-0941. En anglais par un éditeur anglais en première publication.

✔ Freyssenet M., “Renault: Globalization, But For What Purpose?”, in ✔ Freyssenet M., Shimizu K., Volpato G. (eds), Globalization or Regionalization of European Car Industry?, London, New York, Palgrave-Macmillan, 2003, pp 103-131. Édition numérique, freyssenet.com, 2007, 380 Ko, ISSN 7116-0941. En anglais par un éditeur anglais en première publication.

✔ Freyssenet M., Renault, une mondialisation pour quoi faire ?, version française originale de ✔ Freyssenet M., “Renault: Globalization, But For What Pur-pose?”, in ✔ Freyssenet M., Shimizu K., Volpato G. (eds), Globalization or Regionalization of Euro-pean Car Industry?, London, New York, Palgrave-Macmillan, 2003, 275 p. Digital publishing, freyssenet.com, 2007, 360 Ko, ISSN 7116-0941.

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Last presentation page updating

2007.09.21

Date of the putting on line of the downloadable text

2007.09.21, Freyssenet M. Shimizu K., Volpato G., “Conclusion: Regionalization of the European Automobile Industry, More Than Globalization”, in Freyssenet M., Shimizu K., Volpato G. (eds), Globalization or Regionalization of European Car Industry?, London, New York, Palgrave-Macmillan, 2003, pp 209-230. Digital publishing, freyssenet.com, 2007, 400 Ko, ISSN 7116-0941.

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