The transformation of the automotive industry toward electrification and its impact on global value chainsinter-plant competition, employment, and supply chains

  1. Mario Rísquez Ramos 1
  2. María Eugenia Ruiz-Gálvez 1
  1. 1 Universidad Complutense de Madrid
    info

    Universidad Complutense de Madrid

    Madrid, España

    ROR 02p0gd045

Revista:
European Research on Management and Business Economics

ISSN: 2444-8834

Año de publicación: 2024

Volumen: 30

Número: 1

Páginas: 109-119

Tipo: Artículo

DOI: 10.1016/J.IEDEEN.2024.100242 DIALNET GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: European Research on Management and Business Economics

Resumen

The automotive industry is undergoing a profound transformation in its transition to production of electric vehicles. This paper seeks to examine the main transformations taking place in global value chains in the automotive industry as a result of this transition. The analysis follows a multiple case study methodology based on a theoretical approach that seeks to address the research question and purpose. The main findings of this research focus on three dimensions of GVCs. First, this transition increases competition among assembly plants at the intra-group level for the awarding of new models. Second, it continues to reconfigure supply chains, threatening the viability of certain traditional providers of components and giving rise to new players – battery manufacturers – that may challenge the chain hierarchy. Third, the transition to electric vehicles has led to a reduction in employment volume in the chain as a whole. Because the transition is ongoing, it will continue to pose significant challenges for multiple actors involved in the automotive industry.

Información de financiación

Referencias bibliográficas

  • Altenburg, T., Schamp, E.W., & Chaudhary, A. (2016), “The emergence of electromobility: Comparing technological pathways in France, Germany, China and India”, 43(4), 464–475.
  • Baldwin, C. Y., & Clark, K. B. (2000). Design rules: The power of modularity. Cambridge: MIT Press.
  • Barbosa, W., Prado, T., Batista, C., Cˆamara, J. C., Cerqueira, R., Coelho, R., & Guarieiro, L. (2022). Electric vehicles: Bibliometric analysis of the current state of the art and perspectives. Energies, 15(2), 395.
  • Bernal, J. J. (2008). T´ ecnicas para la determinaci´on del precio de venta: Direct-cost y cost-plus. Estrategia Financiera, 23(250), 12–18.
  • Boyer, R., & Freyssenet, M. (2000). Les mod` eles productifs. Paris: La D´ ecouverte.
  • Bridge, G., & Faigen, E. (2022). Towards the lithium-ion battery production network: Thinking beyond mineral supply chains. Energy Research & Social Science, 89, Article 102659.
  • Casper, R., & Sundin, E. (2021). Electrification in the automotive industry: Effects in remanufacturing. Journal of Remanufacturing, 11, 121–136.
  • CEPAL. (2017), “El cambio disruptivo en un sector líder: Relocalizaci´on, modelos de negocios y revoluci´on tecnol´ ogica en la industria automotriz mundial”, in CEPAL (Ed.), La inversi´ on extranjera directa en am´ erica latina y el caribe, Santiago: UN.
  • Dallas, M. P., Ponte, S., & Sturgeon, T. J. (2019). Power in global value chains. Review of International Political Economy, 26(4), 666–694.
  • Del Río-Casasola, A., L´ opez-Calle, P., & Ruiz-G´ alvez, M. E. (2024). The electric vehicle as organizational alibi: The cases of Stellantis Vigo, VW Navarra, and SEAT Martorell. International Journal of Automotive Technology and Management. Pending publication.
  • Dombrowski, U., Engel, C., & Schulze, S. (2011). Changes and challenges in the after sales service due to electric mobility. In Proceedings of the international conference on service operations, logistics and informatics, 10-12 July 2011. available at: https ://ieeexplore.ieee.org/document/5986532.
  • Doran, D., Hill, A., Hwang, K. S., & Jacob, G. (2007). Supply chain modularisation: Cases from the French automobile industry. International Journal of Production Economics, 106(1), 2–11.
  • Durand, C., & Milberg, W. (2020). Intellectual monopoly in global value chains. Review of International Political Economy, 27(2), 404–429.
  • Fredriksson, P. (2006). Operations and logistics issues in modular assembly processes: Cases from the automotive sector. Journal of Manufacturing Technology Management, 17(2), 168–186.
  • Frigant, V. (2011), “Egyptian pyramid or Aztec pyramid: How should we describe the industrial architecture of automotive supply chains in Europe?”, Cahiers du gretha 2011-27: Bordeaux: Universit´ e Montesquieu. Available at: http://cahiersdugretha. u-bordeaux.fr/2011/2011-27.
  • Frigant, V. & Zumpe, M. (2014), “Are automotive global production networks becoming more global? Comparison of regional and global integration processes based on auto parts trade data”, No. 60199, MPRA Paper, available at: http://mpra.ub.muenchen. de/60199/.
  • Fujimoto, T. (2007). Architecture-based comparative advantage–A design information view of manufacturing. Evolutionary and Institutional Economics Review, 4(1), 55–112.
  • Fujimoto, T., & Takeishi, A. (2001). Automobiles: Strategy-based lean production system. Hitotsubashi University Institute of Innovation Research.
  • Galg´ oczi, B. (2020). Just transition on the ground: Challenges and opportunities for social dialogue. European Journal of Industrial Relations, 26(4), 367–382.
  • Geröcs, T., & Pinkasz, A. (2019). Relocation, standardization and vertical specialization: Core–periphery relations in the European automotive value chain. Society and Economy, 41(2), 171–192.
  • Goodrick, D. (2020). Comparative case studies. Thousand Oaks: SAGE Publications Limited.
  • Gauss, L., Lacerda, D. P., & Sellitto, M. A. (2019). Module-based machinery design: A method to support the design of modular machine families for reconfigurable manufacturing systems. The International Journal of Advanced Manufacturing Technology, 102, 3911–3936.
  • International Energy Agency (IEA). (2023). Global EV outlook 2023: Catching up with climate ambitions. IEA Publications.
  • International Energy Agency (IEA). (2022). Global EV outlook 2022: Securing supplies for an electric future. IEA Publications.
  • Jacobides, M. G., MacDuffie, J. P., & Tae, C. J. (2016). Agency, structure, and the dominance of OEMs: Change and stability in the automotive sector. Strategic Management Journal, 37(9), 1942–1967.
  • Jetin, B. (2020). Who will control the electric vehicle market? International Journal of Automotive Technology and Management, 20(2), 156–177.
  • Jetin, B. (1999). The historical evolution of product variety in the auto industry: An international comparative study. In Y. Lung, J. J. Chanaron, T. Fujimoto, & D. Raff (Eds.), Coping with variety. flexible productive systems for product variety in the auto industry (pp. 111–145). Ashgate, Aldershot.
  • Klug, F. (2014). Logistics implications of electric car manufacturing. International Journal of Services and Operations Management, 17(3), 350–365.
  • Krzywdzinski, M. (2021). Automation, digitalization, and changes in occupational structures in the automobile industry in Germany, Japan, and the United States: A brief history from the early 1990s until 2018. Industrial and Corporate Change, 30(3), 499–535.
  • Küpper, D., Kuhlmann, K., Tominaga, K., Arora, A., & Schlageter, J. (2020). Shifting gears in auto manufacturing. Boston Consulting Group. September.
  • Lampón, J. F., & Mu˜ noz-Due˜ nas, P. (2023). Are sustainable mobility firms reshaping the traditional relationships in the automotive industry value Chain? Journal of Cleaner Production, 413, Article 137522.
  • Lampón, J. F. (2022). Efficiency in design and production to achieve sustainable development challenges in the automobile industry: Modular electric vehicle platforms. Sustainable Development, 31(1), 26–38.
  • Lampón, J. F., & Rivo-L´opez, E. (2021). Modular product architecture implementation and decisions on production network structure and strategic plant roles. Production Planning & Control, 33(15), 1449–1464.
  • Lampón, J. F., Frigant, V., & Cabanelas, P. (2019). Determinants in the adoption of new automobile modular platforms: What lies behind their success? Journal of Manufacturing Technology Management, 3(4), 707–728.
  • Lampón, J.F., Cabanelas, P. & Frigant, V. (2017), “The new automobile modular platforms: From the product architecture to the manufacturing network approach”, working paper No. 79160, Munich Personal RePEc Archive (MPRA).
  • Lampón, J. F., Cabanelas, P., & Gonz´alez-Benito, J. (2017b). The impact of modular platforms on automobile manufacturing networks. Production Planning & Control, 28 (4), 335–348.
  • Lefeuvre, A.G., & Guga, S. (2019), “Troubled waters ahead: What’s next for the European automobile industry and jobs. Towards a Just Transition: Coal, cars and the World of Work”, ETUI, Brussels, 157–191.
  • López-Calle, P., Rísquez, M., & Ruiz-G´ alvez, M. E. (2020). Analysis of the efects of the modular design model of car production on working conditions: The cases of VW Navarra and PSA Vigo. Economics and Sociology, 13(1), 90–101.
  • MacDuffie, J. P. (2013). Modularity-as-property, modularization-as-process, and modularity-as-frame: Lessons from product architecture initiatives in the global automotive industry. Global Strategy Journal, 3(1), 8–40.
  • Milberg, W., & Winkler, D. (2013). Outsourcing economics: Global value chains in capitalist development. Cambridge University Press.
  • Mohammad Nazir, N., & Shavarebi, K. (2019). A review of global automotive industry’s competitive strategies. World Journal of Science, Technology and Sustainable Development, 16(4), 170–183.
  • Mönnig, A., Schneemann, C., Weber, E., Zika, G., & Helmrich, R. (2019), “Electromobility 2035: Economic and labour market effects through the electrification of powertrains in passenger cars”, No. 8/2019, IAB-Discussion Paper, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg.
  • Murmann, J. P., & Schuler, B. A. (2023). Exploring the structure of internal combustion engine and battery electric vehicles: Implications for the architecture of the automotive industry. Industrial and Corporate Change, 32(1), 129–154.
  • Pardi, T. (2021). Prospects and contradictions of the electrification of the European automotive industry: The role of European Union policy. International Journal of Automotive Technology and Management, 21(3), 162–179.
  • Pashaei, S., & Olhager, J. (2019). Product architecture, global operations networks, and operational performance: An exploratory study. Production Planning & Control, 30 (2–3), 149–162.
  • Pashaei, S., & Olhager, J. (2017). The impact of product architecture on global operations network design. Journal of Manufacturing Technology Management, 28(3), 353–370.
  • Paz, M. J., Rísquez, M., & Ruiz-G´alvez, M. E. (2022). Inter-firm power relations and working conditions under new production models. The Economic and Labour Relations Review, 33(1), 138–157.
  • Paz, M. J., & Ruiz-G´ alvez, M. E. (2020). Effects of modular platforms on suppliers companies: Evidence from Volkswagen Polo manufacturing in Navarra (Spain). Journal of Manufacturing Technology Management, 32(2), 337–355.
  • Pérez-Moure, H., Lamp´on, J. F., Velando-Rodriguez, M. E., & Rodríguez-Comesa˜na, L. (2023). Revolutionizing the road: How sustainable, autonomous, and connected vehicles are changing digital mobility business models. European Research on Management and Business Economics, 29(3), Article 100230.
  • Pichler, M., Krenmayr, N., Schneider, E., & Brand, U. (2021). EU industrial policy: Between modernization and transformation of the automotive industry. Environmental Innovation and Societal Transitions, 38, 140–152.
  • Pinto, K., Bansal, H. O., & Goyal, P. (2021). A comprehensive assessment of the techno- socio-economic research growth in electric vehicles using bibliometric analysis. Environmental Science and Pollution Research, 29, 1788–1806.
  • Raj-Reichert, G. (2019). The role of transnational first-tier suppliers in GVC governance. In S. Ponte, G. Gereffi, & G. Raj-Reichert (Eds.), Handbook on global value chains (pp. 354–369). Cheltenham: Edward Elgar Publishing.
  • Rikap, C. (2018). Innovation as economic power in Global Value Chains. Revue D’´ economie Industrielle, 163, 35–75. Rísquez, M. (2023). Escenarios de competencia en las cadenas globales de producci´on en la industria automotriz: Un estudio de caso del grupo Stellantis y su planta ensambladora en Vigo. Papeles de Europa, 36(2023), e84410.
  • Sanguesa, J. A., Torres-Sanz, V., Garrido, P., Martinez, F. J., & Marquez-Barja, J. M. (2021). A review on electric vehicles: Technologies and challenges. Smart Cities, 4 (1), 372–404.
  • Schwabe, J. (2020). Risk and counter-strategies: The impact of electric mobility on German automotive suppliers. Geoforum, 110, 157–167.
  • Soares, L. O., Reis, A. D. C., Vieira, P. S., Hern´andez-Callejo, L., & Boloy, R. A. M. (2023). Electric vehicle supply chain management: A bibliometric and systematic review. Energies, 16(4), 1563.
  • Stellantis (2021, 08-july), “Stellantis Presents Its Electrification Strategy” [EV Day 2021]. https://www.stellantis.com/en/investors/events/ev-day-2021.
  • Stellantis (2022, 01-March), “Dare Forward 2030: Stellantis’ Blueprint for Cutting-Edge Freedom of Mobility”. https://www.media.stellantis.com/em-en/corporate- communications/press/dare-forward-2030-stellantis-blueprint-for-cutting-edge-fr eedom-of-mobility.
  • Sturgeon, T. J., & Memedovic, O. (2011). Mapping global value chains: Intermediate goods trade and structural change in the world economy. Vienna: United Nations Industrial Development Organization.
  • Szalavetz, A. (2022a). The digitalisation of manufacturing and blurring industry boundaries. CIRP Journal of Manufacturing Science and Technology, 37, 332–343.
  • Szalavetz, A. (2022b). Transition to electric vehicles in Hungary: A devastating crisis or business as usual? Technological Forecasting & Social Change, 184, Article 122029.
  • Szász, L., Csíki, O., & R´acz, B. G. (2021). Sustainability management in the global automotive industry: A theoretical model and survey study. International Journal of Production Economics, 235, Article 108085.
  • Takeishi, A., & Fujimoto, T. (2003). Modularization in the car industry: Interlinked multiple hierarchies of product, production, and suppliers systems. In A. Prencipe, A. Davies, & M. Hobday (Eds.), The business of systems integration (pp. 254–278). Oxford: Oxford University Press.
  • Tashakkori, A., & Teddlie, C. (2021). Sage handbook of mixed methods in social and behavioral research. Sage: SAGE publications. Teece, D. J. (2018). Tesla and the reshaping of the auto industry. Management and Organization Review, 14(3), 501-212.
  • Whittle, C., Whitmarsh, L., Haggar, P., Morgan, P., & Parkhurst, G. (2019). User decision- making in transitions to electrified, autonomous, shared or reduced mobility. Transportation Research Part D: Transport and Environment, 71, 302–319.
  • Wu, Y. A., Ng, A. W., Yu, Z., Huang, J., Meng, K., & Dong, Z. Y. (2021). A review of evolutionary policy incentives for sustainable development of electric vehicles in China: Strategic implications. Energy Policy, 148, Article 111983.
  • Yao, S., Bian, Z., Hasan, M. K., Ding, R., Li, S., Wang, Y., & Song, S. (2023). A bibliometric review on electric vehicle (EV) energy efficiency and emission effect research. Environmental Science and Pollution Research, 30(42), 95172–95196.
  • Yin, R. K. (2009). Case study research: Design and methods, 5. Sage Publications. sage.