Abstract
For the first time in decades, the automotive industry is undergoing a technological paradigm shift, as the combustion engine technology is gradually being replaced by electric engines. This transition will make parts of the existing automotive supply chain redundant. Risks of this market shift are particularly pronounced in the automotive supply sector in Germany. Numerous studies examine the risks and opportunities of automotive market transitions on a macro-level. However, empirical evidence is missing on the aspect of how “traditional” German automotive suppliers actually respond to the expected market uptake of electric vehicles.This study aims to contribute to the understanding of strategic options and choices of automotive suppliers from the forging and foundry industries as well as system suppliers by presenting evidence from qualitative interviews. It argues that existing patterns of supplier-buyer relationships make upgrading strategies within given value chains a more attractive strategic option than sector diversification. In order to evaluate the individual circumstances on the company-level and the implications of firm strategies on their organizational environment, conceptual aspects from the theories of global production networks and global value chains are applied.
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