The economics of cars

Technology Analysis & Strategic Management, 2012

International Journal of Technology Management, 1998

This paper presents a global analysis of the key factors that could determine the scope of technological innovation in the automotive industry. It argues that most social, economic, industrial and technical features of this industry play against any radical innovation such as, for example, the electric vehicle. It emphasises the 'blocking' role of heavy capital investment, massive employment, infrastructure, consumers' constraints, etc. It contributes to the theoretical debate on technological inertia.

China & World Economy, 2011

This paper brings together a number of robust trade models to shed some light on the likely evolution of the global automotive industry. Vertical product differentiation, intra-industry trade and fragmentation of production leading to international outsourcing are important features of the existing global automotive sector. The global automotive sector will most likely experience groundbreaking changes over the coming decades. The sector is confronted with a multidimensional technological revolution spurred by radical product innovation, shifts in customer demand and government incentives. A dominant driver will be growing public concern about climate change. China and India might well become leading players by 2050, if not earlier.

1988

Many researchers doubt that the car industry (or car travel) can continue on the course developed over the last century. However, there is little agreement as to its future shape. Some see mounting environmental and resource problems as necessitating major changes in vehicle materials, fuels, design, and manufacturing. Particularly in the Asian region, increasing urban road congestion could soon limit car ownership. Other researchers see technological advances, especially in Information Technology, as offering new solutions to these problems, as well as transforming vehicle design and production. The chief aim of this paper is therefore to explore the future of this globally important industry, and to assess these conflicting claims. The main method used will be an analysis of the likely constraints facing the industry in the future, and the proposed solutions. In particular, the claims that Information Technology and ‘green cars’__such as hydrogen fuel cell vehicles—can solve the many anticipated problems are critically examined. Forecasting the industry’s future, never an easy task, is becoming increasingly difficult. We conclude, nevertheless, that concerns about oil depletion, global warming, urban congestion, and solid waste disposal will increasingly constrain and determine both the car of the future, and its manufacturing industry.

Journal of Cleaner Production, 2007

This article introduces the fundamental rational that supports the 'technological regime' of the modern automobile, as well as its potential for inertia, transformation and decline. It presents the main concepts used in automobile design, material selection, and the economic fundamentals that orient today's car assembly and commercialisation. The practices currently adopted by automakers that aim at the rationalisation of systems of production, such as platform consolidation, 'architectures' and modular assembly are briefly discussed. The article inquires into the main reasons for the high pace of consolidation that characterised the automobile assembly and supplier sectors during the 1990s. Subsequently, the discussion about the choice of materials and its impact throughout the life-cycle of cars illustrates the complexities involved in reducing the overall environmental impact of the industry. Finally, by questioning the levels of efficiency of current automobiles and by identifying the core competences of automakers, the final part of the article explains why the automobile industry currently faces one of the most challenging moments of its history.

International Journal of Urban and Regional Research, 2000

2021

This paper examines the factors that affect car sharing development and its impact on the automotive industry. Car sharing can be considered as a new alternative way of mobility, that contributes to efficient transportation through the city. To examine the factors, 8 independent interviews with various experts and stakeholders were conducted to find key factors that affect the development of car sharing. The most common factors were: regulations, policies, autonomous driving, infrastructure, and parking. To find how car sharing may affect the automotive industry, a scenario planning method was used. For this endeavor, 2 most uncertain key factor was chosen: regulations and policies were combined into legislative support, as both of those factors are dependent on local/state authorities, and autonomous driving. The scenarios shed light on what four different types of future car sharing companies and automotive industries may face. This paper contributes to the literature by further examining the factors that affect the development of carsharing and elaborating on the possible future outcomes for people, car sharing, and the automotive industry. The future variations of shared autonomous vehicles are also considered.

Institute for New Economic Thinking Working Paper Series

The automotive industry is undergoing a radical transformation. New social, technological, environmental and geopolitical challenges are redefining the characteristics of a saturated market, opening new scenarios while offering opportunities for the entry of new players. These challenges are bound to trigger reorganization of the global value chain between old and new suppliers and car makers and their suppliers, affecting the distribution of employ-ment, the regionalization of production and the dynamic evolution of the comparative ad-vantage of nations. In this paper we address the issue of the reorganization of global value chains in the face of these challenges. The analysis will compare the relative position of core and peripheries in the North-American and European macro-regions, focusing on Mexico, which represents a significant case study for analysis of the impact of the digital transformation on the domestic value chain in an “integrated periphery”, and of trade agreements...