Global Automotive Industry

Paul Nieuwenhuis is co-Director of the Centre for Automotive Industry Research (CAIR) and the Electric Vehicle Centre of Excellence at Cardiff Business School, Cardiff University. CAIR studies economic and strategic aspects of the world motor industry. He was a founder member of the ESRC Centre for Business Relationships, Accountability, Sustainability and Society (BRASS). His main interests have been historic and environmental and publications have been in these areas, e.g. The Green Car Guide (1992), The Death of Motoring? (1997), The Automotive Industry and the Environment (2003), and the innovative Sustainable Automobility (2014) as well as articles and book chapters, while he contributed to the Beaulieu Encyclopaedia of the Automobile, which won a Cugnot Award from the Society of Automotive Historians. He has acted as an advisor to several car and truck companies, governments and international bodies and is regularly invited as a keynote speaker at business conferences. Peter Wells is a Professor of Business and Sustainability at Cardiff Business School and Co-Director of the Centre for Automotive Industry Research where his work has ranged across spatial industrial development, economics, organisational theory, industrial ecology, technological change, transitions theory, business models and sustainability — all through an applied focus on the global automotive industry. He teaches themes of transport, mobility and business sustainability on the MBA and MSc programmes, as well as to a wide range of companies and organisations. Professor Wells has over 550 publications reaching academia, industry, policymakers and stakeholders through traditional academic papers and books, industry practitioner journals and events, internet publications and, more recently, webinars. His latest books are: The automotive industry in an era of eco-austerity (Edward Elgar, 2010) and Business models for sustainability (Edward Elgar, 2013).

• Notes on Contributors xi Series Preface xviiForeword xix1 Introduction and Overview 11.1 Introduction 11.2 Continuity and Change 31.3 Overview 4References 62 Understanding Change and Difference in the Global Automotive Industry 72.1 Introduction 72.2 Socio]Technical Transitions 92.3 Varieties of Capitalism 122.4 Global Value Chains 142.5 Change in the Automotive Industry: A Synthesis 152.6 Conclusions 16References 173 The Market for New Cars 193.1 Introduction 193.2 Market Fragmentation and Lack of Industry Consolidation 203.3 Geography of Markets 223.4 Mobility Services and the Emergent Automotive Ecosystem 263.5 Conclusions 27References 274 Understanding People and Cars 294.1 Influences on Travel Choices 294.2 Influences on Vehicle Choice 334.3 Acceptability of Transport Policies and New Technologies 344.4 Conclusions 36References 375 Car Manufacturing 415.1 Background and Prehistory 415.2 Ford, Budd and Sloan: The History of Mass Car Production 425.3 Monocoque Construction: Budd’s Impact on Car Design 445.4 Toyotism 455.5 Buddism in Crisis? 465.6 Lean v Agile 475.7 Conclusions 49References 506 Recent Trends in Manufacturing Innovation Policy for the Automotive Sector: A Survey of the United States, Mexico, European Union, Germany and Spain 536.1 Introduction 536.2 A Changing Manufacturing Landscape 556.3 Restructuring in the Automotive Industry 566.4 Automotive Policies in the United States, Mexico, EU, Germany and Spain 576.4.1 United States 576.4.2 Mexico 596.4.3 European Union 606.4.4 Germany 616.4.5 Spain 626.5 Conclusion 63References 647 Labour Relations and Human Resource Management in the Automotive Industry: North American Perspectives 677.1 Introduction 677.2 From Fordist Production to Lean Production: The Evolution of Labour Relations/Human Resource Management Systems in the North American Auto Industry Prior to 2000 707.2.1 The Classic Fordist Industrial Relations System in the US and Canadian Automotive Industries 707.2.2 The Impact of Japanese Transplants and Lean Production Methods on the North American Automotive Labour Relations System 727.3 Developments in North American Auto Labour Relations Since 2000 747.3.1 Concession Bargaining 2003–2008 747.3.2 The Impact of the Global Financial Crisis 767.3.3 Post]Crisis Developments 787.4 Conclusion 78References 808 Labour Relations and HRM in the Automotive Industry: Japanese Impacts 838.1 Introduction: The Japanese Car Industry and Toyota Production System 838.2 TPS and Japanese HRM 858.3 ‘Japanization’ of the Global Automotive Industry 888.4 Changes in Japanese Labour Relations and HRM 908.5 Concluding Remarks 92References 939 The Rise of South Korean (or Korean) Automobile Industry 959.1 Introduction 959.2 A Brief History of South Korean Automobile Industry and the Performance of HMC 969.2.1 Brief History of South Korean Automobile Industry 969.2.2 The Change in Performance of HMG 1009.3 Considering Five Success Factors of HMC 1029.3.1 Vertical Integration 1029.3.2 Modularization of Production and Standardization 1029.3.3 Expansion of Overseas Production Capabilities in Emerging Markets 1049.3.4 Product Strategy 1049.3.5 Quality Focused and Design Focused Management 1059.4 Characteristics of HRM in HMC and Effects on the Management System 1069.4.1 Militant Trade Union Movement and Confrontational Labour]Management Relations 1069.4.2 Fragmentation and Automation of Work 1069.4.3 Internal Competition Systems 1079.5 Conclusion: New Challenges for the Korean Auto Makers as Multinational Enterprises 107References 10810 China’s Car Industry 10910.1 Background 10910.2 Pre]History 11010.3 China’s Car Industry 11110.4 The Role of Government 11410.4.1 Traditional Automobile Industries 11410.5 New Energy Vehicles 11810.5.1 R&D Support 11810.5.2 Industrialization 11910.6 Bringing NEVs to Market 12110.6.1 Demonstration and Pilot Projects: Strategic Niche Management 12110.6.2 Financial Incentives 12210.7 Conclusions 124References 12411 Forging Ahead or Stagnating?: An Analysis of Indian Automotive Industry 12711.1 Introduction 12711.2 History of the Indian Automotive Industry 12811.3 Statistics on Automobile Industry Performance 13211.4 Stagnation of Industry in 2013–2014 13311.5 Factors Critical to the Growth of the Indian Automotive Industry 13311.6 Challenges and Future of Indian Automotive Industry 134References 13612 From Factory to End]User: An Overview of Automotive Distribution and the Challenges of Disruptive Change 13912.1 Shipping and Stocking Cars 14012.2 Retail and Distribution 14312.3 Changes to the Dealer Model 14612.4 The Changing Role of Fleets 14812.5 Delivering Integrated Services Means Rethinking Skills 150References 15013 Impacts of Automobility 15313.1 Introduction 15313.2 Externalities and Automobility: A Broad Perspective 15313.3 Death and Injuries from Road Traffic 15413.4 Environmental Impacts 15613.5 Toxic Emissions 15713.6 Current Concerns 15913.7 Role of the Consumer 16013.8 Conclusions 161References 16114 Regulating the Car 16314.1 Regulating for Safety 16314.1.1 Development of Vehicle Standards 16414.1.2 European Directives 16414.1.3 US Federal Motor Vehicle Safety Standards 16614.2 New Car Assessment Programmes 16714.3 Future Developments 16814.3.1 Impact of New Vehicle Technologies 16914.4 Legislating for a Cleaner Environment 17014.4.1 Fuel Economy: Incentives and Disincentives 17114.5 Climate Change 17214.6 Future Developments 173References 17415 Global versus Local: Regionalism in a Global Industry 17715.1 The Old World 17715.2 Asia 17915.2.1 The Creation of Two Motoring Cultures: India v China 17915.3 Latin America 18015.4 Case Study: On the Margins of Mass Production: Australia 181References 18416 The Impact of Electric Automobility 18516.1 Electric Vehicle Design 18516.1.1 Battery Electric Vehicles 18616.1.2 Hybrid Electric Vehicles 18616.2 Charging Infrastructure – UK Case Study 18716.3 Electric Vehicles in Europe 19116.3.1 Urban Electric Vehicles 19316.3.2 Rural Electric Vehicles – The Welsh Case 19316.4 Conclusions 197References 19717 Alternatives to the Car 19917.1 Introduction 19917.2 Defining the Car: Legislative and Market Boundaries 20017.3 The Hidden World of Non]Car Automobility 20217.4 Transition by Stealth: The 2W]BEV 20317.4.1 3W]BEVs 20517.5 Conclusions 206References 20618 New Business Models and the Automotive Industry 20918.1 Introduction 20918.2 Fundamentals of the Existing Automotive Industry Business Model 21018.3 Pressures for Change on the Existing Business Model 21218.4 Incremental Business Model Evolution in the Automotive Industry 21318.5 Radical Business Model Innovation in the Automotive Industry 21418.6 Conclusions and Future Prospects for Business Model Innovation 216References 21619 Future Challenges for Product and Industry 21919.1 Introduction 21919.2 New Engine Technologies 22019.3 Owning or Sharing? 22319.4 The Future Car 22319.5 The Future Industry 224References 226Index 229