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European Urban and Regional Studies, Vol. 5, No. 4, 317-328 (1998)
DOI: 10.1177/096977649800500403

Changing Inter-Firm Relations in the European Automotive Industry

Increased Dependence or Enhanced Autonomy for Components Producers?

David Sadler

University of Durham, UK

This article explores the extent to which the benefits of new forms of inter-firm partnership within the European automotive industry have been shared between assemblers and component producers. It first considers the changing nature of the buyer-supplier relationship from the viewpoint of different parties and as part of a process of restructuring within the filiere. Then it documents patterns of performance, comparing samples of five European vehicle assemblers and ten component firms from 1987 to 1996. Evidence is presented on R&D and capital investment expenditures, inventory levels and work-inprogress, and profitability. It is concluded that lead- ing component manufacturers proved more resilient and adaptable than the assemblers during the early 1990s. This is explained in terms of the position of these system integrators with respect to their own suppliers, and the differing sectoral and geographical configurations of assembly and leading component firms.


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