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By L. Ciravegna

Adopting a multi-disciplinary technique and utilizing the case of the automobile as a kick off point this quantity discusses how commercial businesses can stay aggressive despite the present monetary downturn.

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Extra info for Sustaining Industrial Competitiveness after the Crisis: Lessons from the Automotive Industry

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The crisis simply decelerated some of these processes, but during the next decade these trends could regain strength, together with the expected higher growth rate of CEE economies and the increasing purchasing power of their consumers. These different trends within Europe are strictly related to the different saturation of the local market. Western European countries have a vehicle park with around 50 cars per 100 inhabitants, and an average income between $30,000 and $40,000 (in purchasing power parities, according to IMF data).

This represents the biggest single investment in Hungary’s 26 Sustaining Industrial Competitiveness after the Crisis history and one of the few examples of Mercedes production in emerging markets. Central Eastern European countries are in general particularly competitive in the small segment, in which labour costs are a higher proportion of the total value of a vehicle. Many of the local facilities only manufactured economy-class cars: there were many examples, including the Fiat Panda and 500 in Poland, Toyota Aygo, Citroën C1, or Peugeot 106 in the Czech Republic, Renault Twingo in Slovenia, the Logan in Romania and several others.

Ghemawat, P. (2005) ‘Regional strategies for global leadership’. Harvard Business Review 83(12), 98–108. , Mourougane A. and Chatal, O. (2010) ‘The automobile industry in and beyond the crisis’. Economic Department Working Papers, No. 745. Paris: OECD. , Knupfer, S. and Pinner, D. (2009) ‘Electrifying cars: How three industries will evolve’. McKinsey Quarterly 3, 87–96. Jurgens, U. and Krzywdzinski, M. (2009) ‘Changing East–West division of labour in the European automotive industry’. European Urban and Regional Studies 16(1), 27–42.

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