The European automobile industry: escape from parochialism

Abstract

Observes that, until recently, the European car industry has focused its efforts almost entirely within the boundaries of its domestic markets. Since the rise of the Japanese car industry and those of emerging economies such as Malaysia and Korea, the Europeans have found that the levels of competition in the world market have intensified. Examines how European car companies have responded to global challenges both at home and abroad. The main responses of the European producers in the home market, albeit late, have been to reduce costs, shed labour, rationalise plants, raise productivity and improve their relationships with suppliers in attempts to boost efficiency. Outside Europe, in the search for global status, they have sought new markets, entered into joint ventures and opened new plants worldwide. Nonetheless, Europe remains the weakest of the triad car producers.