Structuring the firm

Wynn-Williams, Michael

doi:10.1057/9780230233591_4

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“…In this context, there is consensus in the specialized literature regarding the harmful impact of limitations on scale despite the global pursuit of “flexible” methods and “modularization.” Varying estimates can be found for the exact volumes that determine the optimal scale for each of the different stages of automotive production and the relation between these phases in reaching a minimum scale for production as a whole. However, some minimum thresholds (below which the costs of “diseconomies of scale” make production economically inviable) appear to be fairly well-defined: 600,000 units annually per company and between 200,000 and 350,000 units per final assembly plant (Biesebroeck, 2004; Wynn-Williams, 2009). The scale of automotive production in Argentina, averaging slightly more than 500,000 units annually from 2003 to 2019, distributed among seven main companies of light vehicle production, does not need further analysis in this regard.…”

Section: Mercosur In Globalization and Regionalizationmentioning

confidence: 99%

Wages, Price, and Profit: Protection and Value Capture in the Mercosur Automotive Industry

Fitzsimons¹,

Guevara²

2023

Latin American Perspectives

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The expansion of the automotive industry in Argentina and Brazil and its regional integration can be attributed to determinants that differentiate them from other contemporary regionalization processes. Their limited scales of production, outmoded technology, and lower productivity levels than the average in the world market and the inward orientation of regional industry are shared characteristics of the two national processes of capital accumulation, which are still organized around the appropriation by industrial capital of a portion of the substantial ground rent available. La expansión de la industria automotriz en Argentina y Brasil, así como su integración regional, pueden atribuirse a determinantes que las diferencian de otros procesos de regionalización contemporáneos. Sus limitadas escalas de producción, la tecnología anticuada y niveles de productividad más bajos que el promedio en el mercado mundial, así como la orientación interna de la industria regional, son características compartidas por ambos procesos nacionales de acumulación de capital, los cuáles todavía se encuentran organizados en torno a la apropiación, por parte del capital industrial, de una parte de la renta sustancial disponible.

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Section: Mercosur In Globalization and Regionalizationmentioning

confidence: 99%