The Phenomenon of Concentration and Delocalisation in the Automotive Branch Cover Image

Zjawisko koncentracji i delokalizacji w branży motoryzacyjnej
The Phenomenon of Concentration and Delocalisation in the Automotive Branch

Author(s): Katarzyna Hys
Subject(s): Business Economy / Management, Labor relations, Economic policy, Fiscal Politics / Budgeting
Published by: Instytut Badań Rynku, Konsumpcji i Koniunktur
Keywords: capital concentration; production delocalisation; automotive branch;

Summary/Abstract: An aim of considerations is to present the basic mechanisms occurring in the market for automotive branch based on the two characteristic phenomena, i.e. capital concentration and production delocalisation. Research approach: the study was carried out on the basis of an analysis of foreign and national publication as well as by way of desk research where there were used the accessible primary and secondary data such as publications, branch reports, statistical data available in reports, data bases, information accessible on websites of automotive firms. Basic conclusions: the analysis of the issue of capital concentration revealed that entrepreneurs of key firms in the automotive branch prefer the use of investments and business strategy by way of the measures of the type: corporate cooperation on the joint venture (JV) principle and strategical alliances; moreover, mergers and acquisitions as well as outsourcing, activities carried out to the benefit of suppliers and contracting with manufacturers. The made decisions and carried out activities of delocalisation of production in the automotive branch became an integral element of the long-term strategy for activities of many automotive concerns. The basis for making decisions on production delocalisation is an analysis and optimisation of production costs within the available capacities and, owing to that, gaining and offering new advantages for the customer. Practical consequences: entrepreneurs care of undertaking measures aimed at reduction of production costs while maintaining the recognised quality standards. Social consequences: of a material importance for production localisation are technical and economical as well as socio-political factors. In the regions, where there were established and are still set up branches of firms, there takes place an uninterrupted process of development of many areas, inter alia, the infrastructure for transport and logistics as well as telecommunications. As important factors of localisation of industrial centres were also considered stability of the social climate, local labour skills, labour costs, the existing sales market, size and types of taxes in a given region as well as flexibility of the labour law. The article concerns the economic practice.

  • Issue Year: 358/2015
  • Issue No: 5
  • Page Range: 163-175
  • Page Count: 13
  • Language: Polish