CONSEQUENCES OF TECHNOLOGICAL CHANGES IN THE AUTOMOTIVE INDUSTRY – PERSPECTIVES OF THE CENTRAL EUROPEAN REGION AS PART OF THE GLOBAL VALUE CHAINS

Gábor Túry ()
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Gábor Túry: Institute of World Economics Centre for Economic and Regional Studies, Hungarian Academy of Sciences

Global Economic Observer, 2018, vol. 6, issue 2, 82-94

Abstract: Technological change is on the way in the automotive industry, which is moving towards electromobilization. This process raises two important questions. Firstly, what will the global value chain look like after replacing internal combustion powertrains? Secondly, what role will play the countries involved in the ‘traditional’ automotive production in the changed value chain? The main goal of this study is to examine the impacts of the current technological change on the automotive value chain and its effects on the Central European (the Czech Republic, Hungary, Poland and Slovakia) production. The problem is well illustrated by the fact that the Central European countries have significant powertrain production and they have a net production surplus of internal combustion engines compared to their car production. The most important finding of the study is that despite positive improvements related to the technological transition, currently the role of the Central European countries as an assembler is determined by being part of the production of the conventional internal combustion engine powered vehicles. The technological change in the Central European automotive production is based on conventional vehicle assembly. On the other hand, outlook of the region’s development is dependent on corporate strategies, how they manage the technological change i.e. how they solve their battery pack production. This also includes a strategy of the automotive manufacturers that defines the spatial pattern of simultaneous production of conventional and electric models.

Keywords: automotive industry; operations and production management; global value chain; Central Europe; technological change; electric vehicles (search for similar items in EconPapers)
Date: 2018-12
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