Skip to main content
Disciplines
Automotive Business IT + Informatics Construction + Real Estate Electrical Engineering + Electronics Energy + Sustainability Insurance + Risk Finance + Banking Management + Leadership Marketing + Sales Mechanical Engineering + Materials
Events
DE
EN
Books
Journals
Topic Page
Marketing
Start single access now
Access for companies
EXTENDED SEARCH
Log in
Top

2017 | Book

Introduction and Overview Read chapter Read first chapter

Automotive FDI in Emerging Europe

Shifting Locales in the Motor Vehicle Industry

Author: A. J. Jacobs

Publisher: Palgrave Macmillan UK

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

Login to get access
insite
SEARCH

About this book

This book examines the dramatic increase in automotive assembly plants in the former Socialist Central European (CE) nations of Czechia, East Germany, Hungary, Poland, and Slovakia from 1989 onwards. Enticed by relatively lower-wage labour and significant government incentives, the world’s largest automakers have launched more than 20 passenger car assembly complexes in CE nations, with production accelerating dramatically since 2001. As a result, the annual passenger car production in Western Europe declined by more than 20% between 2001 and 2015, and alternatively in the CEE it increased by nearly 170% during this period. Drawing on case studies of 25 current and former foreign-run assembly plants, the author presents a rare historical account of automotive foreign assembly plants in the CE following this dramatic geographic shift. This book will expand the knowledge of policy-makers in Europe in relation to their pursuits of FDI and will be of great interest to scholars and students of business, economic history, political science, and development.

Table of Contents

Frontmatter
1. Introduction and Overview
Abstract
This chapter introduces the book and provides an overview of all the eight other chapters. Overall, the book seeks to provide the first relatively in-depth historical overview of the development of foreign car plants in the five former Socialist CE nations of Czechia, Hungary, Poland, Slovakia and the often ignored East Germany. In doing so, it also sheds light some of the factors driving the growing shift in European car production eastward. Separate chapters are dedicated to each CE nation’s foreign car production histories. A bonus chapter chronicles the activities in the next ring of European car production, the SEE Auto Zone, an area encompassing Romania, Serbia, and Slovenia. These six chapters are bookended by one chapter that provides some basic background data as a foundation for these historical developments, and a conclusion that speculating on the near-term prospects for car production in CE and SEE (next five to ten years).
A. J. Jacobs
2. Two Blocs to One Market: The Shift East of Auto Production in Post-Socialist Europe
Abstract
This brief chapter sets the scene for the nation-specific chapters by providing a short synopsis of passenger car production in CE during the Socialist Era (1949–1989). It then provides a chronology of foreign car plant production launches in CE and SEE and a summary of car production data by nation for CE, SEE, and Western Europe. These figures are broken up into two distinct periods: 1989–2001 or Post-Socialist Phase I; and 2001–2015 or Post-Socialist Phase II.
A. J. Jacobs
3. Foreign Passenger Car Plants in Poland
Abstract
This chapter traces the lineage of Poland’s three current and four former foreign car plants. This complicated saga demonstrates the initial chaos of the early Post-Socialist Period privatization process. Whereas the active plants FCA Tychy, VW Poznan, and GM’s Opel Gliwice all evolved within this context, Poland’s sometimes poor decisions on which automakers to depend upon, Daewoo of Korea, resulted in the failures of its state-run car plants in Warsaw and Lublin. The chapter concludes by summarizing Poland’s Post-Socialist production data over time and by briefly discussing Toyota’s powertrain facilities (engine and transmission) and Mercedes-Benz’s engine factory and rumored car plant in southern Poland. Due to the sheer number of plants to be covered, this chapter is easily the longest in the book.
A. J. Jacobs
4. Passenger Car Plants Before and After the Former East Germany
Abstract
This chronicles the legacies of Post-Socialist East Germany’s five current car factories, back to Auto Union’s (the forerunner to Audi) early-twentieth century plants in Saxony. To help guide the discussion, specific factories are reviewed together along grouped with their respective current automaker group, that is: VW Zwickau (former Auto Union); the pre-war BMW Eisenach is coupled with the current BMW Leipzig factory; and GM’s takeover of the former BMW Eisenach Works and its subsequent construction of today’s Opel Eisenach.
A. J. Jacobs
5. Foreign Carmakers in Czechia
Abstract
This chapter reviews Czechia’s four current car plants. This discussion begins with Skoda’s early-twentieth century formation, including the now Vrchlabi components plant, and follows these plants through their takeover by VW in the early Post-Socialist Period. It also examines Toyota of Japan and PSA Peugeot-Citroen of France’s joint venture TPCA Kolin factory and Hyundai of Korea’s Nosovice plant near Ostrava. Similar to all other country-specific chapters in the book, the discussion concludes with a data summary of foreign-led auto production in Czechia in the Post-Socialist Period.
A. J. Jacobs
6. Foreign Automakers in Independent Slovakia
Abstract
This chapter offers an overview of Post-Socialist Slovakia’s three existing and one planned car factories. This begins by tracing the origins of today’s VW factory in Bratislava under Socialist Czechoslovakia through the German automaker’s takeover and subsequent numerous expansions of the complex. This is followed by sections on PSA Peugeot Citroen’s (PSA) Trnava complex, Kia’s Zilina plant, and Tata Motors’ under construction Jaguar Land Rover (JLR) facility in Nitra. Its conclusion brief summarizes the now independent nation’s rise to become the most prolific vehicle producer per capita in the world.
A. J. Jacobs
7. Foreign Car Plants in Hungary
Abstract
This chapter examines Hungary’s three active and one former foreign car plants. This begins by providing some background on Hungary’s pre-war Socialist commercial vehicle industry and its connections to its now booming car and engine production. It then chronicles GM’s decision to end its small car assembly operation at its Opel Szentgotthard powertrain complex after the opening of its Opel Poland Gliwice. This is followed by reviews of the nation’s three present car plants, Suzuki Esztergom, Audi Gyor, and Mercedes-Benz Kecskemet. The Kecskemet factory’s tumultuous expansion is also discussed.
A. J. Jacobs
8. The Next Ring:The Emerging Southeast Europe Auto Zone
Abstract
This chapter outlines the Socialist and Post-Socialist car industry developments in Romania and the former Yugoslav Republics of Serbia and Slovenia. The discussion begins with Socialist and Post-Socialist histories of Renault’s Dacia Pitesti and Ford’s Craiova in Romania, including Daewoo’s brief failed ownership of the Craiova factory. It then traces the similar paths of FCA Kragujevac complex in Serbia and Renault’s Revoz plant in Slovenia. The review of FCA Kragujevac includes some background on the violent breakup of Yugoslavia and a chronicle of Fiat’s long relationship with the state-run Zastava (maker of Yugo). The Slovenia discussion also introduces possible entrance of a new automaker, Magna of Canada, whose rumored plant in Hoce-Slivnica would be a major breakthrough for the SEE Nation.
A. J. Jacobs
9. Conclusions and Future Auto FDI Prospects for CE and SEE Nations
Abstract
This unique chapter provides near-term outlooks for passenger car production in each of the CE nations and speculates on the role SEE nations will play in this future. For this purpose, Bosnia-Herzegovina, Bulgaria, and Croatia also are brought into the discussion. In order to evaluate these prospects, a back-of-the envelope scoring system is presented that rates the likelihood for expansions of existing plants and the potential for each of the ten nations and East Germany of attracting a new full-fledged car factory (manufacturing 150,000 to 300,000 cars per year). The chapter and book then closes with some thoughts regarding the future geography of auto production in Post-Socialist Europe.
A. J. Jacobs
Backmatter
Metadata
Title
Automotive FDI in Emerging Europe
Author
A. J. Jacobs
Copyright Year
2017
Electronic ISBN
978-1-137-40786-3
Print ISBN
978-1-137-40781-8
DOI
https://doi.org/10.1057/978-1-137-40786-3

Premium Partner

    Image Credits