Modular Production and the New Division of Labour Within Europe

Abstract

This article focuses on the emergence of a new international division of labour in the auto parts industry. Its first section examines the hypothesis that the shift to modular production offers a chance to modify value chain geography inasmuch as modularity causes new opportunities and constraints in geographic proximity terms. An analytical matrix is provided and applied to New Accession Countries, with special consideration being given to French suppliers' circumstances due to the requirement that host country characteristics and company specificities be analysed simultaneously. The second section tests this matrix using statistical data and culminates in a case-study. It will be demonstrated that New Accession Countries are being integrated with the rest of the Continent, due to firms' ongoing search for location-related advantages and because of a tightening/easing interaction that is associated with proximity constraints.

Claves en la evolución de México dentro de la cadena de valor global de la industria de autopartes. El caso del Bajío

“…Estos procesos de cambio en la geografía productiva han sido especialmente intensos en el sector automotriz (Chanaron, 2004;Frigant y Layan, 2009;Lampón et al, 2015). Dentro de este sector es fundamental analizar la industria de fabricación de autopartes por su influencia en la reorganización espacial de la cadena de valor sectorial, dado su peso específico en términos de producción e investigación y desarrollo (I+D), consecuencia de los procesos de externalización que aplican los fabricantes de automóviles (Sturgeon, 2002;Frigant y Layan, 2009;Lampón et al, 2016).…”

Agglomeration in the European Automobile Supplier Industry

“…Several papers address the evolving footprint of motor vehicle parts production in Europe (see Sadler (1999), Frigant andLayan (2009), and Frigant (2009)). Frigant (2009) suggests that "suppliers' spatial reorganizations have occurred on a grand scale" (p. 433).…”

Factors Behind International Relocation and Changes in Production Geography in the European Automobile Components Industry

“…It has been estimated that 75% of the total cost of producing a vehicle comes from components (Frigant and Layan, 2009). This outsourcing creates advantages in terms of flexibility for adapting to frequent changes in demand and to cost reduction requirements, mainly concerning labour.…”

“…In the case of automobile components suppliers, the geography of the sector has been transformed by the fast process of internationalisation taking place over the last decade (Frigant and Layan, 2009). Relocation to cut back labour costs, together with specialisation and follow sourcing, has been the main internationalisation strategy adopted by firms in this sector (Frigant, 2009).…”