New mobility technologies as incentive to location decisions: relocation strategy in the automotive industry

Abstract

PurposeThe purpose of this paper is to analyze the new technologies that condition location strategy and enable the reindustrialization of European countries involved in the automotive industry. Business relocation has seen an upsurge in recent years. The development of the technologies linked to new mobility (connected, autonomous and electric vehicles) in European countries is increasing interest in relocating high value activities in origin countries to preserve high quality jobs and maintain competitive advantage.Design/methodology/approachThe paper analyzes the changes in location factors and relocation trends through qualitative research based on a multiple case study methodology of first level suppliers in the automotive industry.FindingsThis study reveals the capacity technology has to reconfigure the automotive value chain and to change traditional location factors and relocation trends. The results show relevant differences between the traditional components production divisions characterized by offshoring processes, in a continuous decrease of activity and deindustrialization, and the new technologies divisions linked to new mobility with strong growth, reshoring of the high value activities, reindustrialization plans and links with research and development. For these new mobility divisions, protection of innovation to prevent the core knowledge transfer and strong collaboration with local research institutions are key in this highly technological location context.Originality/valueThe research analyzes the impact of new mobility technologies on the relocation processes in the automotive industry through an original approach based on the evolution of traditional suppliers with divisions linked to new mobility.