Automotive Industry Dynamics in Central Europe

Guzik, Robert; Domański, Bolesław; Gwosdz, Krzysztof

doi:10.1007/978-3-030-18881-8_15

Cited by 7 publications

(8 citation statements)

References 13 publications

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“…At the same time, FC economies are typical locations for lower added value, routine activities with production functions such as assembly, less technology-intensive and more labour-intensive production utilising relatively low wage labour. Strategic functions show only weak presence (Bykova et al 2021;Guzik et al 2020;Pavlínek -Zenka 2016;Pavlínek 2018;Pavlínek 2020;Pavlínek 2021;UNCTAD 2021). Albeit FCs are usually equipped with state-of-the-art technologies (Jürgens -Krzywdzsinski 2009), value-added capacity improvements are not always achieved.…”

Section: Variables To Compare Headquarter and Factory Economiesmentioning

confidence: 99%

The realities of EU industrial policies analysed through automotive value chain dynamics

Megyeri

Pelle

Tabajdi

2023

SocEc

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Processes in the past decades have resulted in the segmentation of European industries into ‘headquarter’ and ‘factory’ economies, though these categories are not fully distinct. ‘Headquarter’ economies typically host the higher value added activities and service units while ‘factory’ economies are popular locations for lower segments of the value chains. This setup has implications for EU level industrial policy strategies. In the current times of accelerating technological development and the ever growing servitisation of industries, ‘headquarter’ economies genuinely have better capabilities and resources to gain more share of the value added, and can actually steer the course of events in the sector. In the EU peripheries, new investment often covers relocation of previous technologies and retired assets of original equipment manufacturers (OEMs). The ‘factory’ economies are in a disadvantage in several aspects, while the headquarters optimise according to their own set of strategic preferences, which further compromises the opportunities of industrial actors in the peripheries to shape their own future. Industrial policies, however smart and well designed, have limited chances to influence the character and speed of changes. We review reported cases through which we test literature and contrast realities with aspirations regarding smart and sustainable industrial development across the EU.

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Section: Variables To Compare Headquarter and Factory Economiesmentioning

confidence: 99%

The realities of EU industrial policies analysed through automotive value chain dynamics

Megyeri

Pelle

Tabajdi

2023

SocEc

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“…3 a, b). Foreign-controlled R&D employment and R&D investment gradually increased in EE as the low cost of the R&D labor force attracted FDI and there are numerous examples of a successful automotive R&D developed by foreign firms in EE (Pavlínek et al 2009 ; Pavlínek 2012 ; Szalavetz 2019 ; Markiewicz 2019 ; Guzik et al 2020 ). However, important barriers exist, which are related to the organization of corporate R&D in the automotive industry (Pavlínek 2012 ), as well as the shortages of the qualified R&D labor in EE (Pavlínek 2018 ; Szalavetz 2022 ).…”

Section: The Automotive Industry In Eastern Europementioning

confidence: 99%

“…With the partial exception of Škoda Auto and Dacia, which is related to their position as Tier Two lead firms (Pavlínek and Janák 2007;Pavlínek 2015b) and few additional examples of R&D developed by assembly firms, such as 400 R&D workers working in technical development at Audi Hungária (Audi 2021), R&D competencies of car makers are very limited or completely absent in EE (Pavlínek 2012). It also applies to the supplier sector despite the selective development of R&D activities by foreign TNCs in EE (Pavlínek et al 2009;Pavlínek 2012;Guzik et al 2020), as reflected in the low share of business R&D expenditures of the total value of production and the low share of R&D personnel and researchers of total persons employed in the automotive industry (Tables 3 and 4). This situation is a typical feature of 'truncated development', which refers to the absence or low share of high value-added activities, such as R&D functions, strategic planning, and the decision making about major investments, in foreign-owned factories in host regions, and their concentration at home countries of foreign investors, usually at corporate headquarters and corporate R&D centers (Britton 1980(Britton , 1981Hayter 1982;Pavlínek 2017b).…”

Section: Ee Is Not the Center Of Innovation For Electromobilitymentioning

confidence: 99%

Transition of the automotive industry towards electric vehicle production in the east European integrated periphery

Pavlínek

2022

Empirica

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This article analyzes the progress of the transition from the production of vehicles with internal combustion engines to the production of electric vehicles in eastern Europe. The transition is considered in the context of the development of the automotive industry in eastern Europe since the early 1990s and the relative position of the east European integrated periphery in the European automotive industry value chains and production networks. The article argues that foreign firms are driving the transition, while the role of the east European governments and local firms is much less significant. The transition is slower than in western Europe and eastern Europe will continue to produce internal combustion engine vehicles longer. Eastern Europe will continue to rely on its competitive advantage of low production costs, especially low labor costs, to continue to attract foreign direct investment in the automotive industry. The article considers the consequences of the transition for the position of east European countries in automotive value chains, production networks and the division of labor in the European automotive industry.

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“…An understanding of the motivations of the companies and the context of their internationalization was provided by semi-structured interviews with CEOs or other high-rank managers of the studied companies (three interviews), deputy directors of automotive clusters (two interviews) and heads of special economic zones and regional development agencies (five interviews). These interviews have been a part of a larger research projects carried out by the authors, which comprised so-far more than 100 semistructured interviews with stakeholders involved in the automotive industry ecosystem in Poland and Central Europe and conducted between the years 2005 and 2020 [10][11][12][13]. The semi-structured interviews (11)(12)(13)(14)(15) open questions depending on the type of respondent, either company or business support institution) lasted on average 60-120 min and were recorded (provided that explicit consent was expressed) and transcribed.…”

mentioning

confidence: 99%

“…These interviews have been a part of a larger research projects carried out by the authors, which comprised so-far more than 100 semistructured interviews with stakeholders involved in the automotive industry ecosystem in Poland and Central Europe and conducted between the years 2005 and 2020 [10][11][12][13]. The semi-structured interviews (11)(12)(13)(14)(15) open questions depending on the type of respondent, either company or business support institution) lasted on average 60-120 min and were recorded (provided that explicit consent was expressed) and transcribed. Additionally, three shorter interviews were conducted with managers of the companies during their participation in industry conferences and industrial fairs.…”

mentioning

confidence: 99%

Newcomers from the Periphery: The International Expansion of Polish Automotive Companies

Micek¹,

Guzik²,

Gwosdz³

et al. 2021

Energies

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The rapid growth of Central European economies has been related to inward FDI, so these countries are often regarded as dependent market economies. What is interesting in this context is the international expansion of some domestic-owned manufacturing companies from Central Europe. Looking through the lens of global production networks (GPN) and evolutionary resilience perspectives, the paper aims to identify paths and mechanisms of development of new multinational companies, namely Polish automotive firms expanding from around 2010 onwards in the global markets through acquisitions and greenfield investments in Western Europe, North America, and Asia. The authors ponder on the underlying motives and barriers of this process, the capabilities, and features of Polish-owned companies. In order to do it, both qualitative (13 interviews with representatives of new multinationals and the other stakeholders preceded by content analysis of various documents, including company annual reports in particular) and quantitative (analysis of international trade, revenues, employment, locational data) insights are used for the period covering the time span between 1999 and 2020. As the result, the international expansion of domestic-owned firms is interpreted as a specific critical conjuncture of three mechanisms: (1) development of Central-Eastern European economies since the end of communism, (2) the evolution of the Western European core, and (3) the trajectory of individual Polish firms. We argue development trajectories of the firms going global cannot be understood without taking into account the dynamic interdependence between firm-specific capabilities (including the position within GPNs) and the changing characteristics of the countries (e.g., evolving regional assets).

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Automotive Industry Dynamics in Central Europe

Cited by 7 publications

References 13 publications

The realities of EU industrial policies analysed through automotive value chain dynamics

The realities of EU industrial policies analysed through automotive value chain dynamics

Transition of the automotive industry towards electric vehicle production in the east European integrated periphery

Newcomers from the Periphery: The International Expansion of Polish Automotive Companies

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