The car industry, developments in China and implications for Latin America

Abstract

Due to its dimensions and global scope the car industry is in the center of investment promotion policies, insertion strategies for productive chains, and transfer of technology. This industry currently combines three important elements, (i) it is the leader in productive globalization (electronic commerce, subcontracting, and commercialization), (ii) the production of vehicles in China and in East Asia is adding dynamism to the market and provoking strategy changes, and (iii) the division between original producers and suppliers is consolidating the number of main producers but multiplying the number of subcontractors. These new tendencies that include productive globalization, China and the new production chains require the formulation of a production strategy on behalf of the private companies and an adequate promotion on behalf of the governments.China, Latin America, Car Industry, Production Networks, Globalization