The Regional Nature of the World's Automotive Sector

Warwick Business School, University of Warwick
European Management Journal (Impact Factor: 1.22). 10/2004; 22(5):471-482. DOI: 10.1016/j.emj.2004.09.006
Source: RePEc


There are 29 automotive firms in the world's largest 500 firms. Yet none of these are "global" firms, defined as having at least 20 per cent of their sales in each of the three regions of the broad "triad" of the E.U., North America and Asia. Indeed 23 of the 29 auto and auto parts firms are home-region based, with an average of 60.6 per cent of their sales as intra-regional. These are representative firms across the 500, as the average intra-regional sales for all manufacturing firms is 61.8 per cent. There are a few special cases, especially Toyota and Nissan of firms being active in two regions of the triad. DaimlerChrysler and Honda are "host-region oriented". Seven cases are discussed in some detail to explore the reasons for the lack of globalization in the world automotive business.

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    • "The seminal work on regional strategy by Rugman (2000) has been, according to Google Scholar, cited 214 times (accessed August 29, 2008). Rugman and Verbeke (2004) have been cited 149 times according to Google Scholar and 49 times according to the Social Science Citation Index by Thomson Reuters (accessed August 29, 2008). In addition, these citations are not limited to the management field. "
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