The integration of East-Central Europe into the global production networks of the automotive industry
Abstract
This article analyzes the transformation of he automotive industry in east-central Europe since the early 1990s and its integration into the European and global production networks (GPNs). This transformation has been driven by the investment strategies of transnational corporations (TNCs).
Large inflows of foreign direct investment (FDI) have led to the restructuring of the existing automotive industry, development of new production capacity, and rapid increases in the production of vehicles and components. The article starts with an overview of the automotive industry in ECE at the end of the 1980s, prior to the onset of its restructuring.
Second, it describes its foreign takeover after 1990. Third, it summarizes the sectoral and national trends in ECE.
Fourth, it identifes the most important reasons for FDI in the ECE automotive industry. Fifth, it reviews upgrading and research and development (R&D) in the ECE automotive industry.
Finally, it concludes with a general assessment of the ECE automotive industry.