Competitiveness of the European Automobile Industry in the Global Context

Vošta, Milan; Kocourek, Aleš

doi:10.1515/pce-2016-0023

Cited by 10 publications

(7 citation statements)

References 10 publications

(10 reference statements)

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“…The European automobile industry has its special features, such as high level of technology, importance of safety, sensitivity to the environment. Although Europe is a traditional car producer and an important region of automobile industry, constantly emerging Asian competitors cause decline of the European share in global car production (Vošta et al, 2017). European automobile market is different from the Chinese market.…”

Section: 3mentioning

confidence: 99%

“…To deal with exhaust emissions, alternative fuels, funding for research and development, improving road safety, and the development of intelligent transport systems, the European Commission proposed the "European Green Cars Initiative" framework. As the main concern is CO2 reduction, electromobility in Europe must come from renewable sources, which makes the task even more difficult for automobile manufacturers (Vošta et al, 2017). In contrast, in China urban air pollution is the most pressing environmental problem, and electromobility is therefore encouraged even if cars obtain their electricity from coal-fired power plants, as long as the emissions are kept away from the cities (Hu et al, 2018).…”

Section: 3mentioning

confidence: 99%

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The Impact of Scandalous News in the Automobile Manufacture on Companies from the Same Industry: A Comparative Study on the Chinese and European Markets

Mews

2021

ESJ

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This paper examines the effect of scandalous news on corporate reputation of rival firms from the same industry and investigates the effects’ differences in China and in Europe, providing evidence that scandalous news influences not only the target company itself, but also other companies from the industry. For this purpose, the paper uses the 2015 Volkswagen emissions scandal as a natural experiment. Volkswagen, BMW, Mercedes-Benz, Audi and Porsche were selected as sample companies. To measure reputational spillover effects, cumulative abnormal stock returns and sales growth of the sample companies are calculated and compared before and after the announcement of the scandal. The methodology adopted for estimating stock returns is the event study method, which measures the impact of a specific event on the value of a firm. Stock price data is collected from Bloomberg and used to calculate cumulative abnormal returns of the sample companies. Furthermore, difference-in-differences estimation is used to compare the sample companies’ sales growth before and after the scandal. Volkswagen, Audi, BMW and Mercedes-Benz are included in the treatment group, whereas 29 non-German car manufacturers were selected as the control group. The results show that overall rival companies were affected by the scandal, cumulative abnormal returns declined by 6% and 10% for BMW and Mercedes-Benz respectively, showing the contagion effect. However, the sales growths of these two manufacturers greatly increased, specifically on the Chinese market for Mercedes-Benz and on the European market for BMW, proving dominance of the competitive effect and differences of the reputational spillover effects across countries.

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Section: 3mentioning

confidence: 99%

Section: 3mentioning

confidence: 99%

The Impact of Scandalous News in the Automobile Manufacture on Companies from the Same Industry: A Comparative Study on the Chinese and European Markets

Mews

2021

ESJ

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“…Due to its high technology needs, the industry has a traditionally crucial role in research and development (R&D), besides production. Thus, it is an essential innovator and has serious investment capacities (Vosta & Kocourek, 2016). The European automotive industry consists of more than 20 000 enterprises, produces ca.…”

Section: Literature Reviewmentioning

confidence: 99%

Covid-19 and transformational megatrends in the European automotive industry: Evidence from business decisions with a Central and Eastern European focus

Pelle¹,

Tabajdi²

2021

EBER

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The objective of the article is to reveal the effects of the Covid-19 pandemic on the businesses in the European automotive sector, with a special focus on Central and Eastern Europe. The further objective is to identify how these effects relate to the ongoing transformational megatrends in the sector (digitalisation, electrification). Research Design & Methods:We have collected a large (>700 items) sample of relevant business decisions in the European automotive sector over four years (2017)(2018)(2019)(2020)(2021), including those taken especially due to the Covid-19 pandemic. In our research, we transformed our qualitative inputs into a quantitatively analysable database through coding. Then, we applied descriptive statistical analysis on the retrieved data combined with qualitative analysis of the contents behind these data. Findings: Based on our sample, our primary finding is that the Covid-19 pandemic does trigger the already existing trends of digitalisation and electrification in the European automotive sector. Very similar effects characterise the relatively less developed but deeply integrated Central and Eastern European periphery, although to a lesser extent. Obviously, the Covid-19 pandemic has induced numerous temporary business decisions, mainly plant closures. Layoffs occurred as well but these were not prevalent. Then, the second wave of the pandemic in early 2021 brought about the global shortage of semiconductor chips, which substantially affected the sector in Europe. Implications & Recommendations:The longer lasting impact of the short-term pandemic-related European automotive business decisions is yet to be explored. Nevertheless, the global shortage of semiconductor chips is already showing signs of influencing the industry over a longer time scale, in Europe as well. Forward-looking, future-oriented, and brave responses to the pandemic can well be the keys for businesses to successfully overcome the negative effects of the Covid-19 pandemic. Contribution & Value Added: Our sample of more than 700 items and a four-year-long timespan is in itself a unique collection of business decisions in the European automotive sector. In addition, by processing the inputs through coding, our sample becomes a treasury of potential information. In this article, we conduct an exploration along the events to which the decisions can be related, and along the decision types. We also look at the involvement of Central and Eastern Europe. Obviously, our ongoing primary research was ready to be extended to the firm level analysis of the effects of the Covid-19 pandemic, immediately upon its outburst.

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“…According to the results of the Herfindahl-Hirschman index, it was concluded that the market was close to monopolistic competition. Başkol (2008Başkol ( , 2011, Özdamar and Albeni (2011), Bozdağ and Saraçoğlu (2013), Terregrossa and Gönel (2014) and Vošta and Kocourek (2016) conducted studies on the competitiveness (export competitiveness) of the automotive sector on a macro basis and used predominantly the RCA indices. Başkol (2008Başkol ( , 2011 calculated the competitiveness of Turkish automotive sector.…”

Section: Literature Reviewmentioning

confidence: 99%

“…According to the results obtained using the VI, it was emphasized that Turkey decreased gradually export competitiveness in the relevant market. Vošta and Kocourek (2016) analysed the global competitiveness of the EU in automobile export for the years 1995-2015. According to the results calculated using the BI, it was concluded that Germany and England had relatively high export competitiveness in the last 20 years.…”

Section: Literature Reviewmentioning

confidence: 99%

Etkinlik, Rantabilite ve İhracat Rekabet Gücü Arasındaki İlişki: Türk Otomotiv Sektörü Üzerine Bir Uygulama

Kara¹,

Altinay²,

Erkan³

2020

Gaziantep University Journal of Social Sciences

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Bu çalışmada, Türkiye'de Borsa İstanbul'da (BIST) yer alan Otomotiv şirketlerinin/sektörünün ekonomik ve finansal rantabilite, etkinlik ve verimlilik düzeylerindeki ve ihracat rekabet gücündeki değişikliklerin değerlendirilmesi amaçlanmıştır. 2007-2017 dönemini kapsayan analizlerde, Oran Analizi, Veri Zarflama Analizi (VZA), Malmquist Toplam Faktör Verimliliği (TFV) ve açıklanmış karşılaştırmalı üstünlük endeksleri gibi çeşitli teknikler kullanılmıştır. Verimlilik ve ihracat rekabet gücü skorlarının birlikte hareket ettiği ve ekonomik ve finansal rantabilitenin bu hareketi güçlendirdiği sonucuna varılmıştır. Ayrıca, finansal etkinlik ve ihracat rekabet gücü arasında doğrudan bir ilişki vardır.

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Competitiveness of the European Automobile Industry in the Global Context

Cited by 10 publications

References 10 publications

The Impact of Scandalous News in the Automobile Manufacture on Companies from the Same Industry: A Comparative Study on the Chinese and European Markets

The Impact of Scandalous News in the Automobile Manufacture on Companies from the Same Industry: A Comparative Study on the Chinese and European Markets

Covid-19 and transformational megatrends in the European automotive industry: Evidence from business decisions with a Central and Eastern European focus

Etkinlik, Rantabilite ve İhracat Rekabet Gücü Arasındaki İlişki: Türk Otomotiv Sektörü Üzerine Bir Uygulama

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