Internationalization and specialization in the European automotive components sector: Implications for the hollowing-out thesis

This paper explores two questions: the geographical conditions associated w ith an altered relationship between automobile assembly and component firms in Europe; and the ways in which automotive component firms have restructu red their operations on a global basis. The first section reviews the inter play between positional balance and spatial reorganization, highlighting th e significance of the strategies of leading component manufacturers. These strategies are reviewed in depth in a subsequent section, which pays partic ular attention to processes of internationalization and specialization. A f urther exploratory section asks whether-in the light of these trends-a proc ess of hollowing-out might be taking place within the European automobile i ndustry. It is concluded that important issues to be addressed include the balance between investment flows into and out of Europe, and the extent to which component firm internationalization is aimed at serving new growth ma rkets outside Europe.