The Automotive Industry and European Integration

In the year that the Berlin Wall fell, 1989, 11 auto-producing nations of Western Europe (WE) built 14,906,050 passenger cars. Meanwhile, state-led automakers in the former Eastern Bloc nations of Central-Eastern Europe (CEE)—Czechoslovakia, East Germany, Hungary, and Poland—produced 703,305 cars. Another 445,409 were assembled by state-run firms in the ex-Socialist Southeastern Europe (SEE) nations of Bulgaria, Romania, and Yugoslavia. In 2017, however, WE built 12,271,100 cars, or 17.68% less than in 1989. In contrast, CEE nations produced 4,147,740 cars in 2017 and SEE produced 632,865 cars, for respective gains of 489.75% and 42.09% compared with 1989. Moreover, unlike in 1989, all the cars assembled in CEE and SEE in 2017 were produced by private Western European, American, Japanese, and Korean companies (Ward’s (1956–2018) Ward’s Automotive Yearbook, 1956 to 2018 (Detroit: Ward’s Communications); OICA (1999–2018) Annual Vehicle Production and Sales, and New Registrations Statistics by Nation and/or Manufacturer, 1998 to 2017. Paris: Organisation Internationale des Constructeurs d’Automobiles, http://​www.​oica.​net/​, last 31 January 2019; Jacobs (2017) Automotive FDI in Emerging Europe: Shifting Locales in the Motor Vehicle Industry (London: Palgrave Macmillan); ACEA (2018) The Automobile Industry Pocket Guide 2018/2019 (Brussels: European Automobile Manufacturers Association). Whereas Czechoslovakia encompassed the current nations of Czechia and Slovakia, Yugoslavia traversed today’s Bosnia and Herzegovina, Croatia, Kosovo, Montenegro, North Macedonia, Serbia, and Slovenia).

This chapter lays the groundwork for the book’s Belgian and Spanish case study chapters by examining the evolution of European car production through four phases of European Integration: (1) ‘The EEC-6 Years, 1958–1972’, which outlines some of the major events occurring during the European Economic Community’s (EEC’s) initial six-member nation years; (2) ‘The EEC Expands and Evolves, 1973–1989’, which chronicles the EEC’s enlargement to 9 and then 12 members, and compares passenger car output in Western Europe and the Soviet-led Eastern Bloc; (3) ‘Reshaping the EU’s Car Production Footprint, 1989–2001’, which contrasts output in WE with that in Central-Eastern Europe in Southeastern Europe during initial decade-plus following the fall of the Berlin Wall/breakup of the Eastern Bloc; and (4) ‘The Eastward Shift of Europe’s Automobile Production Footprint, 2001–2017’, which updates the comparison for the ‘Three Areas of Europe’ through 2017.

In this chapter, the first prominent Belgian carmakers of the early twentieth century are discussed. The chapter then explains how the Belgium Government’s decision to appease Ford and General Motors by dramatically cutting import duties on American components, ultimately led to the demise of domestic brand car production in the country in 1949. For ease of use, frequently referenced tables in Chaps. 4, 5, 6, 7. and 8—Tables 3.1, 3.2, and 3.3—are placed at the end of this chapter.

This chapter begins with discussions of Ford’s first Antwerp Plant, and its longer-lasting replacement, Ford Hoboken in Antwerp. This is followed by a more extensive review of the massive Ford Genk, which launched in 1964. The latter survived until 2014, when its shuttering marked the end of Ford’s 92-year run producing cars in Belgium.

This chapter chronicles GM’s history in Belgium beginning with its three small pre-World War II assembly warehouses near Antwerp’s city center. It then focuses on the American automaker’s Noorderlaan-1 and Noorderlaan-2 factories, the latter of which unexpectedly closed its doors at the Port of Antwerp’s Churchill Docks on December 15, 2010. The chapter concludes with a brief discussion of General Motors’ exiting of Europe through the sale of its Opel/Vauxhall assets to PSA Peugeot Citroen of France in 2017.

This chapter provides a brief history of Renault’s car plant near Brussels in Vilvoorde. It begins by discussing its launch in 1935 and destruction during World War II. It then reviews the rebuilt plant’s most productive periods, building Ramblers for American Motors during the 1960s, and its modernization and expansion during the 1970s and 1980s. The chapter then concludes with its most difficult period, the 1990s, leading to its closing in 1997.

This chapter examines the winding road that helped create Volkswagen’s (VW’s) present-day Audi Brussels factory in Forest, Belgium. It begins with a review of Citroen Belgium, the Town of Forest’s first car plant, which in 1980 was annexed by an encroaching VW Bruxelles factory. It then reviews the origins of Audi Brussels, from its launch as a D’Ieteren Brothers-Studebaker Plant, to VW’s partnership with D’Ieteren and takeover of the factory in 1971, to its near closure and transfer to VW’s Audi division in 2007. The final sections discuss the plant’s post-2007 highlights and speculate on its near future.

In this chapter, examines the experiences of Volvo and four former other foreign-owned/licensed car plants in Belgium. It begins with a terse review of Chrysler in Antwerp, before turning to two short-lived operations that eventually came under the control of British Leyland: Standard/Leyland-Triumph Malines in Mechelen; and Austin Morris in Seneffe. This is followed by a section on the Mechelen facility of Importer of Moteurs et d’Automobiles, which produced small lots of Saab and Mercedes-Benz between 1959 and 1978, and Brondeel of Antwerp, which built Saab between 1967 and 1971. The last half of the chapter and the conclusion then focus on Volvo Car Gent, which is currently owned by Geely of China.

Part II closes with this chapter, which provides summary data on annual car production in Belgium, focusing on its post-1989 decline due to the closure of the Renault, General Motors, and Ford factories. The final section speculates on the country’s near-term prospects for car production (during the 2020s).

This chapter offers a brief history of HispanoSuiza, Spain’s first prominent carmaker. It chronicles the firm’s initial success during the early 1900s, and then how its Barcelona plant was militarized during the country’s civil war (1936–1939) and ultimately nationalized for truck production in 1946. Thereafter, it reveals how, Hispano-Suiza joined forces with local banks and industrialists to establish Sociedad Iberica de Automoviles de Turismo in Barcelona (SIAT). Although SIAT never produced a car, its place in Spanish automobile history remains assured, as the company spawned the nation’s largest carmaker, Sociedad Espanola de Automoviles de Turismo, SA (SEAT), in 1950, through an alliance with Fiat of Italy. Again, for ease of use, frequently referenced tables in Chaps. 11, 12, 13, 14, 15, 16 and 17—Tables 10.1, 10.2 and 10.3—are placed at the end of this chapter.

In this chapter, chronicles Ford’s history in Spain, beginning with its complete knockdown operations in Cadiz and Barcelona. The latter is notable because it helped beget Nissan Motor Iberica’s current Barcelona facility in the city’s Zona Franca area. The remainder of the chapter focuses on Ford Valencia, a 400,000-capacity factory that ended the automaker’s 40-year absence in Spain in 1976. The conclusion speculates on the plant’s post-2017 future.

In this chapter, begins with a review of GM’s small pre-World War II Barcelona plant, which was captured during the Spanish Civil War in 1936 by anti-fascist forces. The remainder of the chapter examines GM’s Opel Zaragoza, which opened 46 years later. The final section discusses the American automaker’s exit from Spain and Europe via its sale of Opel/Vauxhall to PSA in 2017.

In this chapter, chronicles Renault of France’s two car assembly complexes in Spain. It begins with a brief review of the French automaker’s joint venture plant with Fabricacion de Automoviles SA in Valladolid, followed by a section chronicling the expansion of the complex to add bodywork and engine plants, and then a second assembly hall. The discussion then turns to Renault’s building of an additional assembly works 30 minutes north of Valladolid in Palencia Province in 1978. Thereafter, sections review the progress of these factories through 2016 and offer commentary regarding Renault’s near-term future in Spain.

In this chapter, provides a brief history of Volkswagen’s (VW’s) current Sociedad Espanola de Automoviles de Turismo, SA (SEAT) division through 1989. It begins by discussing the then Spanish automaker’s Barcelona Zona Franca factory tie-up with Fiat. It then reviews the early history of British Leyland’s Authi Landaben joint venture plant in Pamplona, which SEAT absorbed in 1975. This is followed by sections reviewing SEAT’s breakup with Fiat and subsequent partnership with, and takeover by, VW of Germany. VW’s post-1989 control of SEAT is continued in Chap. 15.

This chapter examines Volkswagen Sociedad Espanola de Automoviles de Turismo, SA’s (SEAT’s) newly constructed Martorell complex, the winding down of car output at Zona Franca, and the automaker’s spinning off its Pamplona plant from SEAT in 1993. The final sections offer post-2001 highlights for Seat Martorell and VW Pamplona and projections for their near-term futures.

This chapter covers the histories of PSA’s Vigo and Madrid car plants through 1989. It begins with Vigo’s origins as Citroen Hispania Balaidos, including Peugeot’s absorption of Citroen in 1974. It then reviews PSA Madrid’s beginnings as Barreiros Diesel in the capital city’s Villaverde district, its expansion to incorporate a Chrysler car plant in 1965, and PSA’s decision to acquire Chrysler’s European operations in 1978. The remainder of this chapter focuses on PSA’s 1979–1989 efforts to integrate these two Spanish factories into its European production network. This then provides a foundation for Chap. 17.

This chapter reviews PSA’s Spanish plants fate during the third and fourth phases of European integration, 1989–2018. This includes examinations the parallel eastward shift of PSA’s production and the EU during the mid-2000s, its near collapse and rescue by Dongfeng Motors of China during the early 2010s, and how PSA’s takeover of GM’s Opel-Vauxhall and current ‘Push to Pass’ expansion plan will affect its Spanish plants.

Part III closes with this chapter, which provides summary data on annual car production in Spain and focuses on how the country’s lower-than-EU-average labor costs fostered post-1989 growth. The final section speculates on Spain’s prospects for car production during the 2020s.

This chapter concludes the book by asking how Europe’s car production footprint will change during the next decade of EU integration (or disintegration)? Will it continue to shift to Central-Eastern Europe or more south-eastward? Then, drawing upon the author’s research for this book and other works over the past 25 years, the chapter offers three possible answers to this query (Hard Brexit, Soft Brexit, and No Brexit). In the process, it offers 2025 and 2030 projections for passenger car plant openings and closing within each nation in a possible 34-member ‘Expanded EU’.