1. © Peter Dicken 2015

2. ‘Wheels of Change’: The Automobile Industry
Global Shift
Chapter 15

3. Review Concepts to Review Key Words
TNC/state relationship, regionalization, heavy industry, role of consumer, 2008 financial crisis, networks
Key Words
Automobile industry, lean production systems, aspirational goods

4. The Automobile Industries: Definition and Structure
Establishment of the industry
key contributor to industrial development
1910s: moving assembly line
1970s: lean production
badly hit by the 2008 financial crisis
Shape of industry
Technological developments
key innovations:
shared platforms
modularization of components
role of electronics suppliers

5. Role of the State
Perceived importance of automobile industry as key developmental sector
states are keen to stimulate it
access to foreign firms
support for domestic ones
Tariffs
Auto assistance packages post-2008
Environmental regulation
much intercountry variation

6. Consumption Patterns Changes in consumption patterns
Cars are necessary goods but there is a strong discretionary element
Demand volatile, due to:
cyclical nature of market
long-term changes in demand
increasing market fragmentation
Cars in the developing world
As developed country markets stagnate, developing world becomes attractive
Rise of China

7. Consolidation Trends Producer level Supply chain level
Collaborative agreements
Supply chain level
Supply system fragmented
Emergence of standardizers, integrators
Diverse relationships between suppliers and assemblers
‘Industrial condominiums’ and ‘supplier parks’
Regionalization of the market