Radical Reform in the Automotive Industry
File Name:Radical Reform in the Automotive Industry
Posted By:Peter O'Brien,Yannis Karmokolias
Published on 1994 by Washington, D.C. : World Bank
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Book Summary
IFC Discussion Paper 21. Much research has been conducted on the automotive industry in industrial nations, which formerly accounted for nearly all auto production worldwide. Little attention has been given to growth of the industry in the emerging markets of Central and Eastern Europe, Asia and the Pacific, and Latin America. In 1993 these economies accounted for approximately 19 percent of global vehicle output, with vehicle sales growing by at least 30 percent annually. This paper focuses on the automotive industry in developing countries and reviews the main points of the roundtable discussions organized by the IFC in Brazil, Hungary, India, and Indonesia. The discussions cover business aspects of the industry, as well as related government policies. The study also makes far-reaching suggestions. For example, component manufacturing can thrive and help generate foreign exchange, whereas car assembly may not succeed. The authors identify the major changes that have occurred since the roundtable discussions and identify the implications for developing countries. This volume is useful for private entrepreneurs considering automotive investments and for policymakers working with unresolved policy agendas.
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