Abstract

The world automotive industry is moving towards the year 2000 in a massive transformation of its organization in a decade of ‘rethinking transportation’. World car demand continues to rise but, unlike the situation in previous decades, growth is forcing internalization and regionalization. Basic transportation demand requires the construction of regional manufacturing capabilities exploiting development synergies and state of the art technology in a world of ecological pressure. At the same time, industrialized markets are demanding more diversified products to meet changing demographic trends and solutions to urban traffic congestion. The opening up of the East European markets adds strategic opportunities to this framework, especially for established manufacturers, but requires huge capital investment.

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