TOWARDS AN INTEGRATED AUTOMOTIVE INDUSTRY IN EUROPE - A MERGING FILIERE PERSPECTIVE

Economic integration and technological developments are offering new o pportunities for the automotive industry in Europe. Understanding and grasping such opportunities is crucial for improving Europe's competit ive position in the global car market. This article explores this issu e by embarking on a historical analysis of the European automotive pro duction system applying the filiere concept. In doing so, the analysis focuses on internal relationships within the production chain as well as on the sociopolitical embedding of production. The main argument p ut forward is that enhanced innovative capabilities and competitive pe rformance require more than the implementation of lean strategies with in the existing business structure. Despite the intensive restructurin g undertaken over the last decade, it seems that the industry is not f ully exploiting the opportunities offered by market integration in Eur ope. This stagnation is attributed primarily to the vested interests o f the major carmakers in retaining the present organizational structur e and their political influence. The article develops a 'merging filie re' perspective which involves, besides genuine internationalization a t various stages of the production chain, a more substantial shift in the responsibilities for design and production from carmakers to main suppliers and a certain detachment of producers from their home enviro nment. The last section of the article focuses on the role of European policy. It is argued that the European Commission should set more dis tance between itself and the large carmakers and adopt a more favourab le attitude towards the independent component industries.