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2025 | OriginalPaper | Chapter

4. Industry 4.0 and Its Implications for the International Division of Labor in the Automotive Industry

Authors : Martin Krzywdzinski, Grzegorz Lechowski

Published in: Global Shifts in the Automotive Sector

Publisher: Springer Nature Switzerland

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Abstract

The chapter explores the profound implications of Industry 4.0 on the automotive industry, focusing on the international division of labor and the adoption of advanced production technologies. It begins by tracing the historical development of Industry 4.0, emphasizing its roots in the German high-tech strategy and its subsequent global dissemination. The analysis reveals that while Industry 4.0 has been promoted as a means to enhance the competitiveness of high-wage manufacturing locations, the reality is more nuanced. The chapter delves into the specific changes in process organization within the automotive industry, highlighting the role of digital technologies such as data analytics, connectivity, and automation. It compares the strategies of different automotive firms and countries, revealing a spectrum of approaches ranging from technologically ambitious initiatives in Germany to more cautious, incremental changes in Japan and the United States. The chapter also examines the impact of Industry 4.0 on the international division of labor, using the German supplier sector in Central and Eastern Europe as a case study. It discusses how the adoption of Industry 4.0 concepts has led to a partial reshoring of production and the emergence of lead plants in high-wage countries. However, it also notes that low-wage locations are increasingly adopting advanced manufacturing technologies, challenging the notion of a clear divide between high-wage and low-wage manufacturing. The chapter concludes by reflecting on the broader implications of Industry 4.0 for the automotive sector, arguing that while the concept has driven significant changes, it has not led to a revolutionary transformation of the industry. Instead, it has built upon and evolved existing production practices, such as Lean Production and the Digital Factory. The analysis underscores the complex interplay between technological innovation, economic factors, and policy initiatives in shaping the future of automotive manufacturing.
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Metadata
Title
Industry 4.0 and Its Implications for the International Division of Labor in the Automotive Industry
Authors
Martin Krzywdzinski
Grzegorz Lechowski
Copyright Year
2025
Book
Global Shifts in the Automotive Sector

Print ISBN: 978-3-031-80640-7

Electronic ISBN: 978-3-031-80641-4

Copyright Year: 2025

DOI
https://doi.org/10.1007/978-3-031-80641-4_4

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