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The Regional Nature of the World’s Automotive Sector

Author

Listed:
  • Alan M. Rugman

    (Department of Business Economics and Public Policy, Indiana University Kelley School of Business)

  • Simon Collinson

    (Warwick Business School, University of Warwick)

Abstract

There are 29 automotive firms in the world’s largest 500 firms. Yet none of these are “global” firms, defined as having at least 20 per cent of their sales in each of the three regions of the broad “triad” of the E.U., North America and Asia. Indeed 23 of the 29 auto and auto parts firms are home-region based, with an average of 60.6 per cent of their sales as intra-regional. These are representative firms across the 500, as the average intra-regional sales for all manufacturing firms is 61.8 per cent. These are a few special cases, especially Toyota and Nissan of firms being active in two regions of the triad. DaimlerChrysler and Honda are “host-region oriented”. Seven cases are discussed in some detail to explore the reasons for the lack of globalization in the world automotive business.

Suggested Citation

  • Alan M. Rugman & Simon Collinson, 2004. "The Regional Nature of the World’s Automotive Sector," Working Papers 2004-23, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    • Handle: RePEc:iuk:wpaper:2004-23
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    File URL: http://kelley.iu.edu/riharbau/RePEc/iuk/wpaper/bepp2004-23-rugman-collinson.pdf
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    Cited by:

    1. Mahmut Sonmez & Deli Yang & Gerald Fryxell, 2013. "Interactive Role of Consumer Discrimination and Branding against Counterfeiting: A Study of Multinational Managers’ Perception of Global Brands in China," Journal of Business Ethics, Springer, vol. 115(1), pages 195-211, June.
    2. Schmid, Stefan & Grosche, Philipp & Mayrhofer, Ulrike, 2016. "Configuration and coordination of international marketing activities," International Business Review, Elsevier, vol. 25(2), pages 535-547.
    3. Gracia, Manuel & Paz, María J. & Rísquez, Mario, 2024. "Analysis of the transition to electric vehicles in Europe from a core-periphery approach," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 652-663.
    4. Dirk Ulrich Gilbert & Patrick Heinecke, 2014. "Success Factors of Regional Strategies for Multinational Corporations: Exploring the Appropriate Degree of Regional Management Autonomy and Regional Product/Service Adaptation," Management International Review, Springer, vol. 54(5), pages 615-651, October.
    5. Chang Oh & Alan Rugman, 2007. "Regional multinationals and the Korean cosmetics industry," Asia Pacific Journal of Management, Springer, vol. 24(1), pages 27-42, March.
    6. Faria, Lourenço Galvão Diniz & Andersen, Maj Munch, 2017. "Sectoral patterns versus firm-level heterogeneity - The dynamics of eco-innovation strategies in the automotive sector," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 266-281.
    7. Yeniyurt, Sengun & Henke, John W. & Cavusgil, Erin, 2013. "Integrating global and local procurement for superior supplier working relations," International Business Review, Elsevier, vol. 22(2), pages 351-362.
    8. Lasse Torkkeli & Kaisu Puumalainen & Sami Saarenketo & Olli Kuivalainen, 2012. "The effect of network competence and environmental hostility on the internationalization of SMEs," Journal of International Entrepreneurship, Springer, vol. 10(1), pages 25-49, March.
    9. Ottó Csíki & Réka Horváth & Levente Szász, 2019. "A Study of Regional-Level Location Factors of Car Manufacturing Companies in the EU," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 69(supplemen), pages 13-39, December.
    10. Simon Collinson & Alan M. Rugman, 2007. "The Regional Focus of Asian Multinational Enterprises," Working Papers 2007-08, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.

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