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Wege aus der Kapazitätsfalle in der Automobilindustrie

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  • Hans-Christian Krcal

    (Universität Heidelberg)

Abstract

Summary Based on a static break-even analysis the article examines the impact of production capacity growth on the automobile industry. The article demonstrates that a capacity dimension, which neglects the dynamic development of variable costs, leads to a so called ‚capacity trap‘, where a combination of capacity growth, rising total cost and almost constant prices is prevalent. Although there is rising turnover caused by the production output the return on investment falls. Examples of the most important strategic measures in the automobile industry point out how the capacity trap is avoidable. Impacts on cost structure, production output and employment are listed. Four variants of capacity planning lead to falling total costs, which show that critical size in capacity dimension can be reached in combination with rising return on investment.

Suggested Citation

  • Hans-Christian Krcal, 2005. "Wege aus der Kapazitätsfalle in der Automobilindustrie," Schmalenbach Journal of Business Research, Springer, vol. 57(6), pages 503-524, September.
  • Handle: RePEc:spr:sjobre:v:57:y:2005:i:6:d:10.1007_bf03372772
    DOI: 10.1007/BF03372772
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    More about this item

    Keywords

    D21; D24; L23; L62; M11;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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