GLOBAL VALUE CHAINS IN THE AUTOMOTIVE INDUSTRY: MODERN TRENDS

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Abstract


The article deals the issues connected with the functioning of global value chain in the automotive industry, which is developing in the sector during last 30 years. The authors pay their attention on the specific features of the structure in the automotive global value chain and its governance. The article stresses that there is a shift from a chain driven by producer to a chain driven by consumer, that could be explained the increasing competition in the world car market. The article also identifies some trends concerning relations between OEMs and their suppliers; these ties are becoming much more close and different level supplies are becoming responsible for different production functions with different levels of responsibility. The article also underlines new trends in geographical location of automotive industry with a special attention to Chinа and India role in the process. The article concludes that all the government support automotive industry in order to limit competition and support local producers during crisis.

N A Volgina

Peoples’ Friendship University of Russia

S S Vozmilova

Peoples’ Friendship University of Russia

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Copyright (c) 2015 Волгина Н.А., Возмилова С.С.

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