Global Perspectives In Automotive Industry

Nicoleta Isac () and Constantin Bâgu ()
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Nicoleta Isac: University of Piteşti, Romania
Constantin Bâgu: Academy of Economic Studies, Bucharest, Romania

Annals of the University of Petrosani, Economics, 2010, vol. 10, issue 2, 207-214

Abstract: The automotive sector is characterised by a relatively low trade/sales ratio. While the production of most automotive producers in the world is spread over various countries in the value chain, the brands are still considered to reflect some national identity. Internationalisation strategies may change over the lifecycle of the product and automakers tend to pursue diametrically opposed strategies. In mature markets, it is about managing what goes on beneath a static surface; in emerging markets’ dynamic environments, companies must strategically position themselves to benefit from growth opportunities. However, without the right strategy and execution in mature markets, it is clear that traditional OEMs cannot profit from emerging markets-the persistence of structural issues in mature market operations eventually will rob all but the most resilient competitors of the opportunity to compete in emerging markets.

Keywords: competitiveness; automotive industry; global market; sales; investment (search for similar items in EconPapers)
JEL-codes: L62 O18 (search for similar items in EconPapers)
Date: 2010
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