Network position, export patterns and competitiveness: evidence from the European automotive industry

Abstract

The organizational characteristics of production in the European automotive industry have favoured a high degree of fragmentation and productive mobility. This article analyses the differing national positions of automotive producing countries and their export patterns – particularly their export reorientation to extra-European Union markets following the collapse of regional demand in the European automotive industry. Based on the methodologies of Mahutga and Piana, our position analysis arrives at two main conclusions: (i) the countries best positioned in the European regional automotive production network are precisely those that have experienced a greater increase in extra-European Union exports, thus reducing their dependence on regional European demand; (ii) the increase in extra-European Union exports (mainly of final goods) is linked to increased regional fragmentation of production in the automotive industry. We conclude that the governance of this fragmentation process is a key determinant of extra-European Union export competitiveness.