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Drawing on the analytical approaches of global production networks, global value chains, and spatial divisions of labor, this book investigates the changing automotive industry in Europe. Petr Pavlínek is a leading scholar of the automotive industry and here he focuses on its restructuring and geographic reorganization since the early 1990s to analyze the driving forces and regional development effects of these changes. Pavlínek explains the spatial profit-seeking strategies of large automotive firms and their role in the restructuring and increasing internationalization of Europe's automotive industry through foreign direct investment. He also considers how rapid growth in eastern Europe has affected western Europe, evaluates the relative position of countries in the European automotive industry, and examines the transition to the production of electric vehicles in eastern Europe. Europe's Auto Industry features original data along with concepts and methods that may be applied in economic geography, economics, industrial sociology and development studies. This book is also available as Open Access on Cambridge Core.
Chapter Four draws on the dynamic theory of uneven development and spatiotemporal fix to conceptualize the changing geography of the European automotive industry based on the spatial profit-seeking strategies of automotive firms. It employs the spatial concept of integrated peripheries to explain the growth of the automotive industry in peripheral regions and its contemporaneous restructuring in existing locations. The empirical analysis is based on 2,124 restructuring events of large automotive industry firms in the European Union countries and Norway between 2005 and 2016, and on 91 interviews with foreign automotive industry subsidiaries conducted in Czechia and Slovakia between 2009 and 2015. Large differences in labor and other production costs across the European Union explain the growth in the east European integrated periphery and simultaneous restructuring in both traditional core regions and old integrated peripheries in western Europe. The empirical analysis also confirmed the increasing internationalization and the decreasing role played by large domestic firms in the European automotive industry.
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