Europe de l'Est

In the name of consumer: The social construction of innovation in the European automobile industry and its political consequences

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Jullien, Bernard, & Tommaso Pardi (2012).  In the name of consumer: The social construction of innovation in the European automobile industry and its political consequences. Gerpisa colloquium. The paper questions the conventional representation of innovation and product policies dynamics in the European automobile industries. It shows that the proliferation of models, their faster renewal and the increasing technological content of new cars have not been pulled by the “postfordist” demand of the new “king consumer”, but pushed by corporate strategies within a well defined conception of control. The paper focuses in particular on the political consequences of this innovation dynamic. At the market level, it shows that this trend has led to an increasing inegalitarian access to new cars reinforced by the rising cost of ownership of second hand cars. At the production level, it shows that in order to manufacture and sell profitably this wide range of new models carmakers have increased work productivity while reducing the cost of work. The paper argues that this double antifordist dynamic has locked-in the sector in a conception of control that is both economic and socially unsustainable.
Thème: Management de l’innovation, changements technologiques, changements de business models
Thème: Managing innovation, technological change and new business models

The persistent role of proximity in vertical relations: Evidence from the European car industry

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Schmitt, Alexander, & Johannes Van Biesebroeck (Submitted).  The persistent role of proximity in vertical relations: Evidence from the European car industry. Gerpisa colloquium 2012. It is sometimes argued that in a global economy many of the traditional roles of proximity have become less important. Yet there is persistent evidence that proximity still shapes economic activity. This paper investigates the role of proximity in the choice of external suppliers in the European automotive industry. We conceptually break it down into three complementary dimensions: physical proximity, cultural proximity, and proximity to clusters. Using a supplier choice model, we find that each of the three dimensions has strong independent explanatory power for the formation of buyer-supplier relationships and that cultural proximity has the strongest e ffects. The eff ect of geographical proximity has become stronger over time at very short distances, but weaker at longer distances. The positive e ffect of clusters is limited to vertical clusters of suppliers that do not produce direct substitutes.
Thème: Trajectoires et stratégies des équipementiers
Thème: Supplier trajectories and strategies

Segmentation and transitions between temporary and long-term employment. Comparison of employment relations in automobile companies in the BRIC countries

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Jürgens, Ulrich, & Martin Krzywdzinski (2012).  Segmentation and transitions between temporary and long-term employment. Comparison of employment relations in automobile companies in the BRIC countries. Gerpisa colloquium. The BRIC countries are often characterized by the dominance of nonstandard employment relations (temporary, agency and contract work) and informal work. But which approaches do the automobile companies follow in the BRIC countries? Do the companies rely on standard long-term employment relationships and constitute “protected islands” within the respective national economies? Or do the companies pursue the approach of segmentation between a (small) core workforce and a (broad) margin of temporary employment? How do skill requirements, labor market conditions and the regulation in the BRIC countries influence the companies’ approaches?
Thème: Nouvelles divisions internationales du travail et transformations des relations d’emploi
Thème: A new international division of labor and changes in employment relationships

Le coût de l’immobilier et le développement de l’automobile : une question d’économie politique

Submitted by Bernard Jullien, GIS-Gerpisa, Ecole Normale Supérieure de Cachan on 12 March, 2012 - 14:13
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La chronique hébdomadaire de Bernard Jullien directeur du Gerpisa et conseiller scientifique de la Chaire de Management des Réseaux du Groupe Essca.

Le Gerpisa recevait cette semaine un de ses membres allemands, Martin Krzywdzinski, qui, avec Ulrich Jürgens, a conduit ces trois dernières années, un travail comparatif sur les formes de gestion des ressources humaines qu’un grand constructeur allemand, d’une part et un grand constructeur japonais, d’autre part appliquent au Brésil, en Russie, en Inde et en Chine, dans leurs usines plus ou moins récentes. L’importance et les apports de cette recherche conduiront immanquablement à ce que, dès sa publication, il suscite un intérêt tel qu’il nous donnera l’occasion d’y revenir.

Un aspect spécifique retiendra ici notre attention : c’est l’importance des conditions dans lesquelles les salariés peuvent se loger. De l’aveu même des chercheurs, ils n’avaient pas prévu dans leur protocole d’enquête de s’y attacher pas plus – soulignent-ils – que les décideurs des grands constructeurs concernés n’avaient planifié leurs implantations en intégrant cette dimension. C’est le caractère récurrent des préoccupations exprimées à ce sujet chez les salariés comme chez les managers qui a conduit les chercheurs à en faire un des items clés de la comparaison. read more

Change in the management of subsidiaries due to increasing value competition - as a starting point for a survey on the impact on employment and occupational qualifications†

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Proff, Heike (2012).  Change in the management of subsidiaries due to increasing value competition - as a starting point for a survey on the impact on employment and occupational qualifications†. Gerpisa colloquium.

Currently, automotive companies are increasing their value added in the growth markets of the BRIC countries, despite the risk of losing knowledge, especially in China. Protecting their global market position and handling the major markets, especially the Chinese market, require high levels of foreign investment, not only in production, but also in other value-adding activities such as research and development (R&D). A new form of value chain competition arises.
 
Therefore, global automotive manufacturers’ and suppliers’ management has to adapt to the changing importance of the foreign subsidiaries and now has to coordinate them at least on a regional basis, if perhaps not yet globally.
 
However, up to now, despite the regionalisation in East Asia, Latin America and sub-Saharan Africa, the value-adding activities of the subsidiaries have been largely confined to single foreign markets. In addition, the interactions between the subsidiaries compared to the exchange relationship between subsidiaries and the parent companies have been low. This has mainly been caused by inter-company transfer pricing and tight, centralized management by the parent companies.
 
Therefore, “integrating a (new) site into the value added network”, as a fourth step in traditional international market management (after 1. Identifying attractive markets and sites, 2. Deciding on the form of internationalisation and 3. Deciding on the form and timing of establishment), has had to be extended by a multi-market management to reduce product substitutability and the scale and scope disadvantages within and between multinational companies (as a first step, to prevent overcapacities) (cf. Proff 2007 and Proff, Proff 2008, based on Bulow et al. 1985). In a second step, the coordination of international value adding activities must be improved in order to further reduce scale and scope disadvantages. Multi-market management thus becomes coordinated multi-market management.
 
Coordinated multi-market management has to increase the exchange between subsidiaries through “strategies covering coordination needs” (cf. Peng, Meyer 2011, pp. 457), which is still low in the automotive industry compared to the exchange relationships between the subsidiaries and the corporate centre or parent company (cf. Fuchs, Apfelthaler 2009, p. 214).
 
Many different “strategies covering coordination needs” are discussed in the literature (cf. overview in Kutschker, Schmid 2011, p. 1035):
 
-        Technocratic coordination strategies that aim to impose routines and standards on operational inputs (e.g. execution of operational processes) and operational outputs (e.g. results) through rules and programmes, plans, budgets, reporting systems and formalisation,
-        People-orientated coordination strategies that are carried out by personal instructions, autonomy, visits, executive transfers, standardisation of roles and culture-orientated coordination and
-        Other “strategies covering coordination needs” such as transfer prices, knowledge transfer and self-organisation.
 
Although many studies examine which coordination strategy is most efficient, and under what contextual factors the use of a specific coordination strategy is particularly efficient, they have not yet succeeded in finding the answers. For this reason, international companies normally use a range of different coordination strategies simultaneously.
 
We used an oral survey as our empirical methodology, in order to identify first indications of future changes in the management of subsidiaries on the basis of increasing international value added competition, and conducted in-depth interviews with experts in the automotive industry using a structured interview guideline. The interviews lasted around one and a half hours on average. This methodology was selected because assessments of future developments, i.e. the strategic perspective of the respondents, were to be recorded. It was therefore impossible to use conventional hypothesis testing and an analysis by multivariate methods.
 
We conducted interviews of 93 industry experts (generally from leading automotive industry associations), well-known academics and top managers (generally managing directors) of subsidiaries of German automotive manufacturers and suppliers in the BRIC countries of Brazil, Russia, India and China – all in the year 2010 during research trips to all four countries – and in the German parent companies
 
The interviews showed that of the many “strategies covering coordination needs” discussed in the literature, four appear to be particularly important: 1. Regional management with extensive autonomy from the corporate centre and coordination based on value consensus, 2. Institutionalised knowledge transfer with coordination based on differences in know-how, 3. Personnel transfer with hierarchical coordination and 4. The offer of shared support functions, with coordination via transfer prices which exploit tax advantages.
 
The interviews therefore showed that these four “strategies covering coordination needs” appear important to the experts and are in some cases already pursued in the multinational automotive companies, but that they are not yet followed to an adequate extent. In China in particular, the many sites have not been coordinated so far in a Chinese or Asian network, but mostly remain autonomous value-adding units.  With the fast growth in China and the other BRIC markets, coordination needs will increase (cf. Proff 2012 and Bernhard 2011, p. 31), the role of subsidiaries therefore has to be redefined.
This finding gives rise to a need for further research. We therefore propose a subproject
“Changes in the management of subsidiaries of multinational automotive companies within a new international division of labour and changes in the employment relationship”
for the new GERPISA International Research Project in the field: New Demarcations in the Global Automotive Industry - Breakup of the Triad, as proposed by Ludger Pries and Antje Blöcker.
 
For this subproject, we can derive the following assumptions:
  • Due to increasing value adding activities in subsidiaries operating in emerging markets, a change from a previously largely locally orientated management to a regional and even globally orientated management with increasing autonomy and accretive influence on the management of the parent company is probable.
  • Parent companies need skilled workers, because branding, technical development and the production of central components still have to be done within the parent companies.
  • Despite the shift of research and development activities into new growth markets, the Triad will remain a central location for innovation, because Asian manufacturers are investing heavily in the Triad.
 
In this subproject we will examine assumptions relating to the influences on employment and occupational qualifications in the foreign locations as well as at the parent companies in Germany. Therefore, case studies will be conducted with parent companies of German manufacturers and their subsidiaries in the BRIC countries (in collaboration with GERPISA colleagues in France and Italy, possibly with partners in the BRIC countries). The research framework will consists of theories on the role and coordination of subsidiaries in the international management and value adding activities of multinational enterprises.
 
 
 
 
Selected References
 
 
Bernhardt, W. (2011) Die Automobilindustrie im Jahr 2025 – heute die Basis für den Erfolg von
            morgen legen, in: `Zeitschrift für die gesamte Wertschöpfungskette Automobilwirtschaft
            (ZfAW)´, 14. Jg., S 26-33.
Bulow, J. I., Geanakoplos, J. D., Klemperer, P. D. (1985) `Multimarket oligopoly. Strategic substitutes
            and complements´, in: Journal of Political Economy, Vol. 93, pp. 488-511.
Fuchs, M., Apfelthaler, G. (2009): `Management internationaler Geschäftstätigkeit´. 2. Aufl., Wien.
Kutschker, M., Schmid, S. (2011) `Internationales Management´, 7. Ed., Munich..
Peng, M., Meyer, K. (2011): `International Business´. London.
Proff, H. (2007): `Dynamische Strategien: Unterstützung der Erreichung der angestrebten Wettbe
werbsvorteile im internationalen Wettbewerbsprozess´. Wiesbaden.
Proff, H. (2012) `Managing the transition to electric mobility in Chinese automotive subsidiaries of
MNCs´, will be published in: International Journal of Automotive Technology & Management”,
Spcial Issue on China Strategies, 2012.
Proff, H., Proff, H.V. (2008) `Dynamisches Automobilmanagement. Strategien für Hersteller und
Zulieferer im Internationalen Wettbewerb´. 1. Aufl., Wiesbaden.

Thème: Nouvelles divisions internationales du travail et transformations des relations d’emploi
Thème: A new international division of labor and changes in employment relationships

Global quality production—new patterns of transnational division of labor of German automobile suppliers

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Herrigel, Gary, Ulrich Voskamp, & Volker Wittke (2012).  Global quality production—new patterns of transnational division of labor of German automobile suppliers. Gerpisa colloquium. The contribution will focus on changing transnational production systems of German medium sized automotive suppliers. In addition to the traditional strategy to integrate low wage locations into their transnational value chains (the “extended workbench” strategy), a new pattern is on the rise, which we call „global quality production“. This means, German automobile suppliers are upgrading low wage locations in Central and Eastern Europe (CEE) as well as in China in upgrade in competencies and capabilities, enabling them to enter higher value segments of production that up to now were thought to be an exclusive domain of German locations. Based on case evidence the contribution will discuss how the process of upgrading at low wage locations in CEE and China is organized. This includes how German automobile suppliers ensure the local pre-conditions for upgrading strategies, such as a capable local supply base and the supply of a of qualified work force With regard to Germany the contribution will discuss the ambivalent implications of this upgrading in CEE and China and the newly emerging new pattern of transnational division of labor. One hand automobile suppliers German locations may face new impositions, when firms use the new options for another round of cost oriented relocation. But there can be new opportunities as well, because the successful operation of transnational quality production systems also depends on the capabilities of German locations to newly direct their profiles to innovation and coordination tasks in global systems. For industrial production in German locations this structural change reduces the significance of its traditional function, but at the same time amplifies its direction to innovation functions. For works councils new options of codetermination open up in this process, but using them is bound to preconditions: adjusting their competence profiles, redirecting their organization structures, and reorganising their power base in a differently structured workforce.
Thème: Trajectoires et stratégies des équipementiers
Thème: Supplier trajectories and strategies

The 2008-2009 automotive industry crisis: Global trends and firm-level effects in Central Europe

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Pavlínek, Petr (2012).  The 2008-2009 automotive industry crisis: Global trends and firm-level effects in Central Europe. Gerpisa colloquium. This paper examines the 2008-2009 economic crisis in the automotive industry. The uneven nature of the crisis contributed to the gradual shift in production from traditional core areas of the global automobile industry to selected less developed economies. In this context, the paper analyzes the firm-level effects of the economic crisis in the Czech and Slovak automotive industries as two examples of automotive industry peripheries that were integrated in the European automobile production system and experienced rapid production increases after 1990. The analysis draws on unique data collected during the survey of 274 Czech-based and 133 Slovak-based automotive firms conducted in Fall 2009 and Spring 2010, 98 company interviews conducted with automotive firms in Czechia in 2010 and 2011, and on 30 interviews conducted in Slovakia in 2011. Changes in revenues, production and employment during the economic crisis are compared between Czechia and Slovakia, and are analyzed according to ownership, the involvement of firms in the automotive value chain, and the firm size. The article also investigates plant closures and relocations in the Czech and Slovak automotive industries during the economic crisis.
Thème: Trajectoires et stratégies des équipementiers
Thème: Supplier trajectories and strategies

(Re)producing competitive advantage: workforce skills and automobile multinationals in East Central Europe

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Scepanovic, Vera (2012).  (Re)producing competitive advantage: workforce skills and automobile multinationals in East Central Europe. Gerpisa colloquium. This paper looks at the issue of workforce skills in the automotive sector of Central and Eastern Europe as part of a more general employment model which underpins the production strategies of firms in the sector. Drawing on the literature of varieties of capitalism and employment models, it identifies the elements of this relationship as comprising of low cost, high flexibility and relatively high skills. However, in contrast to some other observers of the region, I argue that although these features formed a relatively stable regional employment configuration for nearly two decades, they are not in any meaningful sense complementary or mutually enforcing, and that the very success of the region has become the source of internal tensions. These tensions, which materialise as labour shortages, workers’ dissatisfaction and wage pressures, have brought about a variety of responses from the automobile firms and other relevant actors. The overall direction appears to be that of a downward adjustment towards low skill-high flexibility-(relatively) low cost configuration, or the so-called “low-road employment model” (Juergens and Krzywidzinski: 2008), but insofar as the most prominent employers are eager to keep the advantages of the original configuration, there may be still some scope for the governments to steer the industry onto the higher path. On the other hand, the same factors which underwrote the competitiveness of the industry created disincentives for the new cohorts of future workers to invest in the manufacturing skills, making it more difficult for the governments to continue catering to the needs of these industries.
Thème: Nouvelles divisions internationales du travail et transformations des relations d’emploi
Thème: A new international division of labor and changes in employment relationships

Managing Complexity: European Works Councils of Diversified Tier 1-Suppliers

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Hauser-Ditz, Axel, Valentina Mählmeyer, & Ludger Pries (2012).  Managing Complexity: European Works Councils of Diversified Tier 1-Suppliers. Gerpisa colloquium. The European automotive industry and especially the supplier sector has been undergoing a process of a structural change in terms of increasing competition and cost pressure, closures, mergers and acquisitions, relocations, follow- and global-sourcing strategies, higher dependence on OEMs and a tougher vertical restructuring of first, second and third tiers, shorter innovation cycles and a shift from more electrical and electronic parts towards e-driven cars in the near future. These processes were associated with serious challenges for the employees of supplier companies and their representatives at the local, national and European levels. Therefore, plant closures, mass redundancies, pressure on wages, working time and other working conditions were to observe in almost every supplier company. The paper examines the role of European Works Councils (EWCs) in the automotive supplier industry and the corresponding restructuring processes. It focuses especially on conditions under which EWCs could work as effective bodies or platforms of cross-border interest regulation. On the example of four Tier 1 suppliers (Bosch, Continental, Delphi, GKN), the article provides insights into different management strategies of diversification and (re)localisation of production and R&D activities the EWCs are confronted with. Focusing on the issues of securing employment, hindering or (if necessary) co-managing mass redundancies, plant closures and/or relocation of production, the paper first demonstrates different roles and functions of EWCs ranging from marginal or inactive bodies up to proactive and powerful platforms of intra-organizational negotiations on the workers’ side and of inter-organizational bargaining with the European and local management. Secondly, the paper aims at explaining this EWC-outcome by referring to four different compounds of influencing factors: (1) configuration and type of company at the European level (multinational, focal, global, transnational), (2) cultural and institutional embeddedness in national environments, mainly of the headquarters, (3) path dependency and the ‘learning curve’ from earlier development and conflict resolution, and (4) the role of individual/charismatic leaders, their personal values and interests. The paper will argue that, given the legal framework, there is some potential for influencing cross-border restructurings by EWCs at the European level, but due to a high degree of disparate and disperse structures of supplier companies the complexity of intra- and inter-organizational bargaining is rather high, and the qualification of a majority of EWC-members does not hold up with the corresponding challenges.
Thème: Nouvelles divisions internationales du travail et transformations des relations d’emploi
Thème: A new international division of labor and changes in employment relationships

The perils of obsolescence: The case of Opel

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Kerpen, Daniel (2012).  The perils of obsolescence: The case of Opel. Gerpisa colloquium.

General Motors (GM), the world’s largest automaker in 2011, has been tremendously affected by the 2008-2009 automotive industry crisis: Facing the Chapter 11 bankruptcy filing on June 8, 2009, the GM management and US government officials since then paved the way for a massive company restructuring process (Senter and McManus, 2010). Although being stock market relisted since November 2010 with the largest IPO in US history and reporting an EBIT-adjusted income of $8.3 billion for 2011 calendar-year, the GM recovery process still remains open-ended.

Purpose and approach: The above outlined reorganization is heavily affecting GM’s European branch of automobile production (former GME, defunct since 2010). It’s most important European subsidiary, Adam Opel AG, still remains in the focus of actual trouble-shooting interventions: The question to be addressed in this proposal is the analysis of Opel’s trajectory being affected by GM’s restructuring.

Therefore, first contribution of the presentation will be a comparison of the economic situation of GME in general and Opel in particular in the wake of the 2008-2009 crisis (before/during/after). This will shed a light on the core problems actually still troubling Opel, while competitors like Volkswagen and Renault-Nissan quickly reported recovery of production and sales figures following the latest crisis.

Secondly, I will contribute by analyzing structural problems affecting the future Opel restructuring and the companies’ continuing search for a sustainable strategy and market appearance. Hence, the following analytical dimensions will be of special interest (Boyer and Freyssenet, 2002): 

1) Focussing on markets, preliminary results are by the end of 02/2012: the long criticized restricted market appearance and limited export possibilities for Opel do not allow any or only marginal participation on lucrative export markets like GM’s US home market, as well as the Brazilian and Chinese market; remaining core markets solely are the shrinking or at best stagnating British, German, French, and Southern European markets, whereas in the latter ones sales decline because of the European sovereign debt crisis. GM’s recently announced assistance in Opel’s international marketing and retailing expansion (e.g. in Chevrolet-focussed markets like Russia) has yet to prove its success.

2) Regarding the productive organization, we actually see that Opel’s production sites within the GM Global Manufacturing System (GMS) are limited to Europe, too. Furthermore, plant capacities are not sufficiently utilized (only approx. 75 % against a target utilization of at least 80 %). The co-operation with potential partners like Peugeot, as recently discussed under a new strategic GM-PSA-alliance or partnership, has to be evaluated, e.g. concerning potential benefits in special car segments like B/C-segments; but it remains questionable as a means of diminishing existing overcapacities instead of closing production facilities, a topic currently fuelled by discussions about possible future shutdowns of at least Bochum or Ellesmere Port production site.

3) Observing the company’s product policy, the brand image setback of the 1990s quality problems still troubles Opel today. Although actually being back on track concerning product quality, fuel efficiency, and service, Opel is still affected by budget cuts in R&D in the wake of the GM bankruptcy; which has delayed technological product portfolio revaluations like direct-shift gearboxes or high-compressed downsize ICEs. Finally, the long-awaited and much-applauded range-extended EV Ampera/Volt models have yet to prove their appraisals in advance.

4) Finally, looking at company governance processes, the continuously replacement of top-management positions is tensioning the employees. Furthermore, the employee side persistently clings to concessions in context of an Opel restructuring 2011-2014ff. agreement achieved in fall 2010 (Bloecker, 2011), which is actually already put into question again by GM management. Finally, the newly-elected head of works councils representatives, Schäfer-Klug, has yet to fit in the confident and media-present role which predecessor Franz played while pursuing the finally failed GM-Opel separation.

Conclusion: In sum, these points may not only generally contribute fruitfully to this year’s conference in the selected topic. They may also stimulate discussion in particular with specialized research agendas, for instance researchers interested in future GM trajectories, future prospects of Opel/GM plants, as well as interest in current policies and actions of works councils.

References: 

Bloecker, A., 2011. Chances and failures concerning sustainable location- and job protection: The Case of Opel Bochum [in German]. Presentation prepared for the workshop “Chances and failures concerning sustainable location- and job protection with special reference to OPEL”, promoted by Office of Cooperation RUB/IMU, Hans Boeckler Foundation and Otto Brenner Foundation, Bochum, 24 October 2011. Online available: http://www.ruhr-uni-bochum.de/rub-igm/Transfer/ZWISCHENERGEBNISSE_I.pdf

Boyer, R., Freyssenet, M., 2002. The Productive Models. The Conditions of Profitability, Basingstoke and New York: Palgrave Macmillan.

Senter, R. and McManus, W., 2010. General Motors’ Steps to Recovery. Paper prepared for the 18th Gerpisa International Colloquium, Berlin, 9-11 June 2010. Online available: http://gerpisa.org/en/node/728

Thème: Trajectoires et stratégies des constructeurs
Thème: Manufacturer trajectories and strategies

Suppliers' innovation strategies in Central European Countries

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Havas, Attila (2012).  Suppliers' innovation strategies in Central European Countries. Gerpisa colloquium.

It is practically impossible to delineate the boundaries of automotive industry and give an indication of its economic significance using readily available statistics. As a very wide range of products are used to assemble a motor vehicle – practically all industrial sectors supply the automotive industry –, data collected by statistical offices are usually too narrow in terms of coverage. In other words, quite a few automotive suppliers are classified as leather, rubber, plastics, paint, glass, cable or metal producing and processing companies, foundries, electrical and electronics companies, etc. In spite of these limitations, it can be safely stated that automotive industry, and especially automotive suppliers, play an important role in the four Central European countries analysed in the proposed paper, namely in Austria, Hungary, Poland, and Slovenia.

The paper relies on statistical analyses (using business statistics and data stemming from various rounds of the Community Innovation Survey), firm-level interviews, as well as secondary sources. The main findings can be summarised as follows. New products are usually brought in by parent firms in three countries, with some exceptions. The obvious one is when formalised R&D activities are conducted in these “home” countries, too, leading to product innovations. Another source of product innovations is reverse engineering, e.g. in the case of spare parts sold on the aftermarket. Incremental innovations are also important from an economic point of view, although these are less spectacular. In these cases the idea might come either from the users, requesting improved performance or from the engineers of a supplier to reduce production costs, energy consumption and environmental burden (e.g. oil used during machining processes) or enhance product characteristics. For some of this latter type of modification, the entire production process has to be redesigned, purchasing new equipment, introducing new measurement and test methods, too. In the fourth country, that is, Austria, however, there are large, R&D intensive firms, too, besides SMEs characterised by considerably lower level of RTDI activities. In that context, a policy driven 'greening' of the car industry – collaborating with the energy sector and also receiving regional public funding – has given impetus to automotive firms’ innovation activities. Further, large automotive firms are also very active in R&D co-operations with domestic and foreign universities and other research organisations. Both EU FP projects and national STI policy support schemes are important funding sources for these co-operation activities.
In general, production processes are designed by the subsidiaries, assisted to some extent by the parent firm or the suppliers of machinery. In most cases, subsequent process innovations are stemming from local knowledge and experience. Also, it is quite often the case that products brought in by the parent firms need to be modified for more efficient manufacturing, i.e. the sources of these minor product innovations are the subsidiaries. A frequent form of process innovation nowadays is the introduction of manufacturing cells, usually designed by the local engineers, trained by the parent firm, and assisted by general principles applied across the various subsidiaries of the group.
 
As for organisational innovations, there might be some assistance provided by the parent firms in the form of internal manuals, guidelines and good practices, but local solutions are also encouraged. For example, so-called cross-functional teams have been introduced by an interviewed firm, composed of middle-managers responsible for purchasing, manufacturing, logistics, and quality assurance. These teams are usually co-ordinated by a sales manager, who is representing the firm vis-à-vis the client in all matters, responsible for obtaining and keeping orders, maintaining smooth co-operation with the buyer and inside the firms among the various units, and thus a profitable operation. For indigenous firms, the main sources of organisational innovations are their own ideas and/ or external advisors.
Marketing innovations might be of economic relevance, too, especially for suppliers specialising in the aftermarket. One such firm in our sample has established direct contacts with its major buyers (e.g. public transport service providers), and thus replaced wholesale companies.
 
In sum, automotive firms are in fierce competition with their counterparts (assemblers – assemblers; T1 – T1 suppliers; etc.), and thus there are strong incentives to be innovative, i.e. to introduce new products, processes, organisational solutions, management and marketing methods. Moreover, several T1 suppliers, when assess their T2 suppliers’ performance include the intensity of innovativeness among the set of evaluation criteria. Our interviews have confirmed the crucial importance of co-operation among subsidiaries of large MNCs, and that of international production networks (in case of independent suppliers). Besides, local knowledge and experience are also important sources of the various types of innovations (technological and non-technological) observed. From a different angle, beyond formalised R&D activities, many other types of knowledge are needed to underpin successful innovations.
 
International comparison also highlights that besides sectoral features, several characteristics of a given national innovation system also influence firms' innovation strategies, especially the overall framework conditions for innovations (e.g. economic stability and predictability; costs of, and access to, capital) the quality of the higher education and vocational training systems; the willingness of the publicly financed research organisations to co-operate with businesses; and the availability of domestic funds to support RTDI activities. 
Thème: Trajectoires et stratégies des équipementiers
Thème: Supplier trajectories and strategies

The Crisis and Beyond: The Dynamics and Restructuring of Automotive Industry in Poland

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Domański, Bolesław, Robert Guzik, Krzysztof Gwosdz, & Magdalena Dej (2012).  The Crisis and Beyond: The Dynamics and Restructuring of Automotive Industry in Poland. Gerpisa colloquium. The Crisis and Beyond: The Dynamics and Restructuring of Automotive Industry in Poland Bolesław Domański, Robert Guzik, Krzysztof Gwosdz, Magdalena Dej Jagiellonian University, Krakow, Poland Poland has been one of the winners of the new international division of labour in the European automotive industry at the turn of the centuries. The dynamic growth fuelled by foreign investment created the relatively broad scope of production activities with a large number of suppliers and fast increasing exports. This was accompanied by a gradual, though selective, industrial upgrading. The global financial crisis resulted not only in lower car sales, but also in a changing geopolitical order and geographically differentiated public intervention. The authors address the issue of the impact of recent economic and political changes on the development of automotive industry in the Central European semi-periphery. Special emphasis is on the effects on the production and non-production competences of carmakers and suppliers located in Poland, and hence their position in global value chains. Different strategies and development trajectories of various foreign-owned and indigenous companies are analyzed and interpreted from the point of view of their ownership, size, position in the supply chain, product specialization and labour- and capital-intensive character of production. It is particularly interesting to explore and compare, on the one hand, the attributes of the delocalized activities (relocated to other countries), and on the other, the entry of new automotive activities into Poland and their features in the last five years. The current restructuring processes and their effects reflect the capability of the different actors to adjust to the current rapid changes and their relationships with the local milieu, including local labour market conditions. Consequently, the restructuring processes has uneven impact on various regions of the country, which is also examined and discussed in the paper.
Thème: Processus d’émergence des nouvelles industries automobiles
Thème: The emergence of new automotive industries

Making distributed R&D work – Internationalization of Teamwork in R&D-Teams and its formal and informal aspects

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Sauer, Stefan, & Sabine Pfeiffer (2012).  Making distributed R&D work – Internationalization of Teamwork in R&D-Teams and its formal and informal aspects. Gerpisa colloquium. Focusing teamwork in R&D teams this paper deals with new forms of an international division of labor in the automotive sector and its formal and informal consequences. We present theoretical implications and empirical findings from three case studies conducted in the joint research project ‘TRUST-Teamwork in cross-company cooperation’, which is financed by the BMBF and the ESF. In our research we surveyed 44 qualitative, semi-structured interviews in automotive suppliers, with a length of 60-90 minutes each. For quite a long time transformations of the automotive sector depending structuring and restructuring processes in older and new production spaces have been taken place.. In the last years, also the R&D sector is affected from the ongoing processes. Especially (new) habitats in Eastern Europe and China have increasing R&D responsibilities. These habitats are not longer elongated workbenches, but part of globally distributed production and development (Voskamp/Wittke 2012). In our empirical findings we can identify three forms of transnational R&D cooperation: Subsidiaries acting as a support location, as associated partners of implementation, and performing their own projects including technical administration (Schilcher et al. 2011). The new transnational division of innovative work has led to changes in employment relationships, organizational structures, and team relationships depending communication processes and daily work. Engineers in the headquarters are faced with colleagues with lower wages and lower working standard – and vice versa. Furthermore, employees of all habitats experience a lack of transparency concerning management’s strategy. Without clear perspectives in the cooperation, a high level of anxiety concerning employment security and mutual rivalry is increasing. Other challenges are cultural differences (Jameson 2007) like a differing feedback culture, which can lead to misunderstandings and the missing possibility to solve problems in face to face interactions involving the working subject. Due to these reasons, mistrust is increasing in the analyzed R&D- Teams and obviates trust-based teamwork. These experiences show that there are formal and informal aspects which are important for a successful international division of labor (not only) in R&D teams. Not only new employment relationships, also their interpretation, not only the new organizational structures, also their communication and acceptance, not only new team relationships, also their impacts and team-building are very important. And R&D- Teams need solutions for both formal structures and informal cooperation.
Thème: Nouvelles divisions internationales du travail et transformations des relations d’emploi
Thème: A new international division of labor and changes in employment relationships

An empirical examination of the international relocation factors in the auxiliary automotive indystry. The Spanish case

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SARTAL, A., & J. F. LAMPÓN (2012).  An empirical examination of the international relocation factors in the auxiliary automotive indystry. The Spanish case. Gerpisa colloquium. The auxiliary automotive industry in Spain has experienced one of the most important international relocations over the last decade, a situation that resulted in the loss of 9,300 jobs form 2001 to 2008. In this context, our research identifies, from main strategies and trends in this sector, the key factors in the relocation process. In this context, this paper analyzes the influence of several (seven) potentially important factors in the international relocation process in Spain. Thus, we contrast our hypotheses (Table 1) individually  to find statistically significant differences between relocated plants (33) and remaining active plants (153) in period 2011-2008 .We perform the relevant empirical analyzes that allowed to predict the behavior of our dichotomous dependent variable (0/1; active plant / relocated plant) respect to our seven independent variables: (1) Complexity of production, (2) Labor intensity, (3) Productivity, (4) Alternative plants, (5) Ownership of capital, (6) Continuous restructuring of production processes, (7) Manufacturer-supplier proximity. We apply a t contrast for the two independent samples looking for significant differences between the  relocated and non relocated plants.The obtained results show significant mean differences between relocated plants and non relocated plants for all analyzed variables. Correspondingly, we can conclude that the international relocation of a production plant can be predicted through the seven proposed internal factors. Additionally, all variables show surprisingly low values of p. In all cases the variables are significant for a p value <0.01. It confirms, therefore, the association between relocation of production plants with plants with labor-intensive activities that, if other conditions permit it, will be transferred to countries with low labor costs. Also, this process is linked with low complexity activities and, therefore, location with less demanding requirements (form technology point of view). In addition, low levels of productivity pose a risk of transfer and / or closure to ensure the profitability of the owners.At the corporate level, the plants belonging to companies with other possible alternative production locations, favors a possible relocation process. These companies are more flexible to coordinate resources internationally and their relocation costs are zero practically. Also, there is a higher relocation risk in those plants belonging to foreign owned companies because the political and social costs of the relocation process are nonexistent in this case. Finally, the implementation of corporate restructuring strategies (concentration and specialization) and logistical conditions (Lean SCM) are shown as another important key factors in the international relocation process.
Thème: Trajectoires et stratégies des équipementiers
Thème: Supplier trajectories and strategies

The three major uncertainties facing the European automotive industry

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Frigant, Vincent (2011).  The three major uncertainties facing the European automotive industry. European Review of Industrial Economics and Policy. The European automotive industry has once again entered a period of uproar. The crisis of 2008/2009 is far from over but probably marks the start of a new era that some observers are starting to refer to as the second automobile revolution. In this article -and more broadly throughout this special issue of the ERIEP, for which is serves as an introduction- we will be trying to emphasize three major uncertainties that weigh upon the European automotive industry. The first relates to the future products that the sector is looking to manufacture and sell. This will involve questions about electric vehicles but also how internal combustion vehicles might be sold to more tone-deaf European consumers. The second section will revisit the outsourcing strategies that have arisen over the past 30 years, together with their increasingly obvious limitations. The final section will highlight the profound geographic recomposition that has taken place under our eyes over the past decade or so, and which speaks directly to the issue of Old Europe’s productive capacities in the future.

Face au déficit automobile français : reconquérir la production des petites ou assurer son retour sur les grosses ?

Submitted by Bernard Jullien, GIS-Gerpisa, Ecole Normale Supérieure de Cachan on 30 January, 2012 - 11:08
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La chronique hébdomadaire de Bernard Jullien directeur du Gerpisa.

La célébration du démarrage de la production de la 208 à Poissy est venue rappeler à point nommé : que le cœur du marché français et des positions compétitives des constructeurs français en Europe est constitué par ce segment ; que, pour peu qu’ils soient suffisamment chargés et que l’on y investisse normalement, les sites français dégagent des performances qui permettent à un constructeur de continuer de leur donner les premiers rôles dans la production.

L’analyse du commerce extérieur va très clairement dans ce sens en montrant :
que le passage de la situation d’excédent qui prévalait encore en 2007 lorsque l’on assemblait en France plus de trois millions de voitures à la situation de déficit que l’on constate depuis est venu des petites voitures et de la place qu’ont pris dans leur assemblage les sites des nouveaux états membres (NEM) et de Turquie ;

que la montée en gamme que l’on a constaté parallèlement pour une part des clientèles s’est effectuée assez clairement au profit des constructeurs allemands et a conduit à ce que se creuse aussi le déficit plus "traditionnel" du commerce extérieur automobile français sur les plus "grosses" voitures. read more

Configuration of the North American and European auto industries – a comparison of trends

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Klier, Thomas, & Jim Rubenstein (2011).  Configuration of the North American and European auto industries – a comparison of trends. European Review of Industrial Economics and Policy. The sharp economic downturn that began at the end of 2007 severely impacted the auto industries on both sides of the Atlantic. The paper summarizes changes in the industry footprint for both North America and Europe. In North America the current geography came about through a dramatic reallocation of market share and subsequent plant turnover. In Europe an expansion of the industry footprint was motivated by the opening of Eastern European countries and markets. Only in North America did the recent recession significantly reduce production capacity. The locations of parts producers are closely tied to assembly locations in both regions to support just-in-time production. Yet, the supply base appears more spatially concentrated in Europe.

Environmental pressure in fragmented markets: the fall and rise of bus makers in Poland

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Gwosdz, Krzysztof, Robert Guzik, & Boleslaw Domanski (2011).  Environmental pressure in fragmented markets: the fall and rise of bus makers in Poland. European Review of Industrial Economics and Policy. The authors explore differences in the strategies and capabilities of foreign and domestic bus-makers located in Poland, in an attempt to capture the factors behind the radical changes in the structure and geography of this sector in the country. This includes the decline of traditional bus manufacturers and the rise of new foreign and domestic manufacturers, including the successful expansion of Solaris as one of the major European manufacturers of environmentally-friendly buses. Growing environmental pressure along with a need for new technologies in bus manufacturing is interpreted as a window of opportunity for a reconfiguration of the bus manufacturing industry in Europe. The importance of flexibility and willingness to meet specific customer needs in the fragmented national and local markets is emphasized.

La Russie : anti-Europe de l’Est

Submitted by Bernard Jullien, GIS-Gerpisa, Ecole Normale Supérieure de Cachan on 19 December, 2011 - 13:21
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La chronique hébdomadaire de Bernard Jullien directeur du Gerpisa.

Autrefois géopolitiquement liées, la Russie et les PECO l’étaient aussi économiquement. La chute du mur a fait éclater le bloc il y a un peu plus de 20 ans. La première est restée politiquement et économiquement centrée sur elle-même en contrôlant aux deux niveaux son ouverture à l’Ouest. Les seconds sont, avec l’Allemagne de l’Est d’abord et ses anciens compagnons d’infortune ensuite, rentrés dans l’UE. Ils ont au fond troqué leurs statuts de périphérie plutôt développée du bloc communiste pour devenir la périphérie en développement de l’ensemble européen. read more

Cars21 ou l’improbable politique industrielle européenne

Submitted by Bernard Jullien, GIS-Gerpisa, Ecole Normale Supérieure de Cachan on 12 December, 2011 - 13:30
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La chronique hébdomadaire de Bernard Jullien directeur du Gerpisa.

Autoactu nous indiquait cette semaine la publication du rapport intermédiaire de Cars21 deuxième vague qui, suite à la crise, a repris en 2010, la démarche d’analyse et de recommandations qu’avait initié le premier Cars1 au milieu des années 2000. La démarche est intéressante et relativement originale puisqu’elle consiste à organiser très officiellement une confrontation des points de vue sur les régulations produites à Bruxelles et ailleurs et ayant un impact important sur l’industrie automobile. On tente pour cela de réunir au sein d’un "groupe de haut niveau " les différents responsables des politiques publiques européennes, nationales et même régionales d’une part et les différentes parties prenantes à la vie de l’industrie (constructeurs, équipementiers, distributeurs, organisations syndicales…) d’autre part. Par rapport à la première vague, la seconde a étendu la concertation en conviant en particulier l’industrie pétrolière et les distributeurs d’électricité. read more

La Russie : laboratoire des ambitions françaises dans les émergents

Submitted by Bernard Jullien, GIS-Gerpisa, Ecole Normale Supérieure de Cachan on 2 November, 2011 - 12:29
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La chronique hébdomadaire de Bernard Jullien directeur du Gerpisa.

Les dix jours écoulés ont été dominés en France par les annonces très contrastées des deux constructeurs nationaux qui ont semblé à certains égards vivre dans deux mondes différents. Plus que leurs ventes en Europe et en France qui, chez PSA comme chez Renault baissent au troisième trimestre (de 11% et 4% respectivement), ce sont leurs capacités à profiter de la croissance des émergents, et, à terme, à y tenir des positions fortes qui sont en cause. Dans le même temps, l’accent était mis sur la Russie : AvtoVaz annonçait un doublement de ses profits au premier semestre et l’entrée de la Russie dans l’OMC- que retardaient en particulier les exigences fixées par l’Etat russe en matière automobile – semble se dessiner pour décembre. read more

Retour vers le futur de l’intégration européenne que l’on nous promettait en 2004

Submitted by Bernard Jullien, GIS-Gerpisa, Ecole Normale Supérieure de Cachan on 24 October, 2011 - 16:08
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La chronique hébdomadaire de Bernard Jullien directeur du Gerpisa.

En menant une recherche sur la dernière phase de l’intégration européenne, celle qui nous a fait passer d’une Europe à 17 à une Europe à 27, j’ai exhumé un numéro spécial qu’avait consacré en 2004 la revue Réalités Industrielles au sujet pour célébrer l’entrée des premiers PECO (Pays d’Europe Centrale et Orientale). Il inclut entre autres un article très évocateur consacré à l’automobile .

On y lit notamment :
"La plupart des spécialistes estiment la demande régionale à 2,4 M de véhicules neufs d’ici 2010, soit plus 15 % de la demande projetée de l’UE15 contre 6 % actuellement. A beaucoup plus long terme, et au regard du poids de ces pays dans la population européenne, la région recèle un potentiel de 4 M d’immatriculations de véhicules neufs par an.
Ces perspectives justifient l’agressivité commerciale des constructeurs. La région constitue un enjeu stratégique à moyen terme où les jeux ne sont pas encore faits. Mais il s’agit d’un processus lent et qui peut s’avérer cyclique :
- l’Espagne est ainsi passée d’un taux d’équipement de 71 véhicules/1000 habitants en 1970 (37 % de la moyenne UE15) à 408 en 1998 (UE15 = 451), et son parc reste âgé puisque 35 % des voitures ont encore plus de 10 ans ; read more

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