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Transnational Strategies and Regional Development: The Case of GM and Delphi in Mexico

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  • Jorge Carrillo

Abstract

The Mexican automotive industry has been undergoing continuous and rapid change over the past two decades. Much of this change has been understood in the context of related processes of firm restructuring and globalization. The paper examines GM's global strategies and describes the profound transformation of Mexican affiliates in re-orientating away from production for the domestic market towards global operations. It also analyses the successful experience of Delphi (GM's former components division) in Ciudad Juarez as an example of how the agglomeration can add value under specific social and institutional conditions by forming a sectoral cluster in which a network of companies accelerate learning, especially among engineers and technicians. Delphi is one of the most conspicuous examples of the process of productive integration within the North American Free Trade Agreement (NAFTA), as well as a model of technological learning and upgrading in an emerging economy. Finally the paper examines the limited influence of public policy initiatives aimed at building on the upgrading strategies of transnational firms in Mexico to stimulate endogenous regional development by local suppliers.

Suggested Citation

  • Jorge Carrillo, 2004. "Transnational Strategies and Regional Development: The Case of GM and Delphi in Mexico," Industry and Innovation, Taylor & Francis Journals, vol. 11(1-2), pages 127-153.
    • Handle: RePEc:taf:indinn:v:11:y:2004:i:1-2:p:127-153
    DOI: 10.1080/1366271042000200484
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    Cited by:

    1. Anthony Black, 2009. "Location, Automotive Policy, and Multinational Strategy: The Position of South Africa in the Global Industry since 1995," Growth and Change, Wiley Blackwell, vol. 40(3), pages 483-512, September.
    2. Anthony Black, 2011. "Trade Liberalization, Technical Change and Firm Level Restructuring in the South African Automotive Component Sector," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(2), pages 173-202, July.
    3. Vincent Frigant & Martin Zumpe, 2014. "The persistent heterogeneity of trade patterns: A comparison of four European Automotive Global Production Networks," Working Papers hal-02150622, HAL.
    4. Arroyo-López, Pilar Ester & Bitran, Gabriel R., 2008. "Coordination of Supply Chain Networks and the Emergence of Mini-maestros," Working papers 40083, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    5. Jordaan, Jacob A., 2011. "FDI, Local Sourcing, and Supportive Linkages with Domestic Suppliers: The Case of Monterrey, Mexico," World Development, Elsevier, vol. 39(4), pages 620-632, April.
    6. Vincent Frigant & Jean-Bernard Layan, 2009. "Géographie d'une industrie automobile modulaire : le cas des équipementiers français en Europe de l'Est," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(4), pages 711-737.
    7. Vincent FRIGANT, 2007. "Ten years of modularity: empirical evidences on the restructuring of the auto part industry (In French)," Cahiers du GREThA (2007-2019) 2007-15, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    8. Vincent FRIGANT & Martin ZUMPE, 2014. "Are automotive Global Production Networks becoming more global? Comparison of regional and global integration processes based on auto parts trade data," Cahiers du GREThA (2007-2019) 2014-09, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    9. Hoshino, Taeko, 2015. "Boundaries of firms and catching up by latecomers in global production networks : the case of a Mexican auto-parts manufacturer," IDE Discussion Papers 492, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    10. Vincent Frigant, 2007. "Between Internationalisation and Proximity: the internationalisation process of automotive first tier suppliers," Post-Print hal-00257463, HAL.
    11. Javier Bilbao-Ubillos, 2010. "Spatial Implications of New Dynamics in Production Organisation: The Case of the Automotive Industry in the Basque Country," Urban Studies, Urban Studies Journal Limited, vol. 47(5), pages 1117-1146, May.
    12. Andrew Schrank & Josh Whitford, 2009. "Industrial Policy in the United States: A Neo-Polanyian Interpretation," Politics & Society, , vol. 37(4), pages 521-553, December.

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