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European Urban and Regional Studies, Vol. 4, No. 1, 5-18 (1997)
DOI: 10.1177/096977649700400101
© 1997 SAGE Publications

Towards an Integrated Automotive Industry in Europe

A'Merging Filiere' Perspective

Arnoud Lagendijk

University of Newcastle, UK

Economic integration and technological developments are offering new opportunities for the automotive industry in Europe. Understanding and grasping such opportunities is crucial for improving Europe's competitive position in the global car market. This article explores this issue by embarking on a historical analysis of the European automotive production system applying the filiere concept. In doing so, the analysis focuses on internal relationships within the production chain as well as on the sociopolitical embedding of production. The main argument put forward is that enhanced innovative capabilities and competitive performance require more than the implementation of lean strategies within the existing business structure. Despite the intensive restructuring undertaken over the last decade, it seems that the industry is not fully exploiting the opportunities offered by market integration in Europe. This stagnation is attributed primarily to the vested interests of the major carmakers in retaining the present organizational structure and their political influence. The article develops a 'merging filiere' perspective which involves, besides genuine internationalization at various stages of the production chain, a more substantial shift in the responsibilities for design and production from carmakers to main suppliers and a certain detachment of producers from their home environment. The last section of the article focuses on the role of European policy. It is argued that the European Commission should set more distance between itself and the large carmakers and adopt a more favourable attitude towards the independent component industries.


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