Contract Manufacturing and the Future of the Automotive Industry (in Spanish)
Universitat Pompeu Fabra
Xosé H. Vázquez
University of Vigo
August, 27 2009
Economía Industrial, No. 358, pp. 79-85, 2005
Technological and organizational change in the automotive sector is pushing the outsourcing of production to limits which would probably be astonishing a few years ago. Whereas vehicle brand owners tend to specialize in design, research and marketing, their suppliers produce components and assemble cars. Besides eliminating barriers to entry, this “contract manufacturing” encourages industry consolidation, fosters homogeneous diversification and mitigates differentiation built upon “zero defects” strategies and product range. If this trend continues, we will probably see a future in which the main brands only maintain in house the
production of prototypes and high quality or customized cars.
Note: Downloadable document is in Spanish.
Number of Pages in PDF File: 8
Keywords: Industrial manufacturing, suppliers, production, specialization, international outsourcing, automotive industry
JEL Classification: M11, M21, L14, L22, L62Accepted Paper Series
Date posted: September 6, 2009
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