The automotive industry in Central and Eastern Europe

Kravishvili Ana (2018) The automotive industry in Central and Eastern Europe. Külkereskedelmi Kar.

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Absztrakt (kivonat)

ABSTRACT The thesis goes through and examines how the automotive industry is structured in CEE region in the global value chain perspectives. As automotive industry is one of the major industries in terms of employment and production in the world, it can be considered as a most influential sector in every country’s economy. Automotive trade linkages between Central and Eastern European countries and influence on their economic growth proves its vital importance. The research includes the components such as the industry structure and the main factors that drive the manufacturing action, the main characters such as OEMs and Tiers involved in the value-added process, and of course the contradictions, which the industry players face too. In the first chapter, I would like to raise the importance of global value chain structure in theoretical aspect of the automotive industry, more precisely how the supply chain works together with the main automotive industry mechanism and the dynamic forces of operations that create the overall structure. The unique strength of the automotive industry is clearly shown in chain structure when it incorporates other supporter industries to complete one particular product. This process is complex and requires participant’s efficient cooperation. The process also involves different types of suppliers and OEMs. This chapter explains core differences between the Tiers and examines the most powerful supplier companies in Central and Eastern European countries. Additionally, I will discuss the EU regulations on automotive industry, that mainly emphasized the problem of CO2 emissions. The following regulations help to solve the air pollution problems that are related to European commission’s long-run strategies. The second chapter is the core of the thesis. For more illustrativeness, there are discussed three country’s automotive industries from CEE region. It includes the case studies of Slovakia, Hungary and Czech Republic. These countries are one of the most important members of the European automotive industry and are located close to each other. Closeness is a decisive factor that determines the car assembling process to be more regional than globalized, carmaker companies always try to be closer to their end market, correspondingly, suppliers cluster their plants near the final assemblers too. Each given country has its specific significance and role. Especially and the MNCs that operate in these countries and have established the car and modular systems assembling plants. Most of the MNCs that are investing in Hungary, Slovakia and Czech Republic are from foreign countries. Skoda is only one exemption which from the beginning was established in the Czech Republic and became famous worldwide, even has sales in Asia. This makes Czech automotive industry “unique”. During analyzing the country’s automotive sector, I identified the governmental role as a main supporter of the foreign direct investments. There are different macroeconomic factors that have to be taken into consideration while investing in the country, so governments are trying to prepare the soil for attracting the multinationals. As a result, they benefit from economic growth, decreasing the national balance deficit and unemployment rate also gain the fame among the other multinational companies too. But, it must be noted that sometimes investments are accompanied by negative facts. The second part examines the challenges and problems of each country. All these factors and other determinations are explained in the second chapter. In the third part, I briefly examine positive and negative impacts of the FDI in the automotive industry in the Czech Republic, Hungary, and Slovakia. Mainly I focus on the challenges overall CEE faces at. The state had a major role in order to change the country from socialism to neoliberalism in the 1990s and lack of appropriate local capital and the fiasco of several economical strategies raised the need for the government to approve a long-term solution. Through FDI, countries, and regions are becoming part of the externally organized production value chains or networks. Thus, automotive plants which are located in peripheral areas of these countries have become well-organized strategically important performance branch platforms. Lack of innovation, technology caused serious problems in trade, which has reflected negatively on the overall economic situation. Thus, for these countries in order to push economic growth states tried every possibility to attract foreign investors even by overbidding incentives. Even though CEE region has become a very favorable destination for FDI since the 1990s, the situation changed after the world financial crisis, FDI relocation risks have increased against CEE region toward North Africa and Romania, which are characterized by more lower wages. But in my opinion, the biggest risk Czech Republic, Hungary, and Slovakia face is – dependence on Foreign capital and MNC’s control over the country industries and the economy itself.

Angol cím

The automotive industry in Central and Eastern Europe

Intézmény

Budapesti Gazdasági Egyetem

Kar

Külkereskedelmi Kar

Tanszék

Nemzetközi Gazdaságtan Tanszék

Tudományterület/tudományág

NEM RÉSZLETEZETT

Szak

Nemzetközi Gazdaság és Gazdálkodás

Mű típusa:	diplomadolgozat (NEM RÉSZLETEZETT)
Kulcsszavak:	Autóipar, Skoda, Volkswagen-csoport, Opel, Audi, Suzuki, Mercedes, Közép-Kelet Európa, Csehország, Magyarország, Szlovákia
Felhasználói azonosító szám (ID):	Szabó Zoltán
Rekord készítés dátuma:	2018. Máj. 07. 10:51
Utolsó módosítás:	2022. Okt. 14. 10:38

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