Radical reform in the automotive industry : policies in emerging markets. IFC. Discussion Papers.

O'Brien, Peter. Karmokolias, Yannis.

1994

CIENA
437

0-8213-2806-9

The automotive industry has been the subject of considerable research over the years. Practically all such research has dealt with the automotive industry in developed countries that formerly accounted for nearly all production and the bulk of sales. Little attention has been given to the industry in developing countries. Yet, in 1993 the Emerging Markets of Central/Eastern Europe, Asia/Pacific, and Latin America accounted for approximately 19 percent of global vehicle output, twice greater than the share had been in 1985, despite major desruptions in the former USSR and Yugoslavia. Vehicle sales in these countries, while exports of both vehicles and components have been substantial. This paper focusses on the automotive industry in developing countries. It builds on the roundtable discussions organized by the International Finance Corporation (IFC) in Brazil, India, Indonesia and Hungary involving automotive industry experts and IFC staff. The discussions covered business aspects of the industry, such as technological changes, characteristics of the market place, the changing relationship between suppliers and assemblers, and between multinational and developing country companies; and policy aspects such as macroeconomics, competition, trade regime, local content regulations, and the environment. This paper reviews the main points of the round-table discussions, the major changes that have taken place since then and the implications for developing countries. The core part of the paper reviews the impact of macroeconomic changes on business decisions; regulations governing market structure and production conditions; policy constraints on the growth of domestic demand; trade policy and measures to enhance investment.. CONTENET AND PURPOSE OF THE IFC-SPONSORED WORKSHOPS. DOMINANT TRENDS IN THE WORLD AUTOMOTIVE INDUSTRY. The Vehicle Picture in the 1990's. Automotive Components. Organizational Imperatives. STRUCTURE OF THE AUTOMOTIVE INDUSTRY IN SELECTED COUNTRIES. The Assembly Industry. The Component Industry. Domestic Demand. Automotive Trade. Measuring Rods of Investment and Production for Developing Countries. POLICY PERFORMANCE AND POLICY PROSPECTS. The Policy Process and Its Participants. Policies on Automotive Production. Macroeconomic Policies and Automotive Development. Trade Policies. STRATEGIC POLICY PERSPECTIVES FOR MAJOR DEVELOPING COUNTRIES. South America. Indian Subcontinent and China. Indonesia and the ASEAN Countries. Central Europe. BIBLIOGRAPHY.

Presenta tbls. y gráfs.

PAISES EN DESARROLLO; INDUSTRIA AUTOMOTRIZ; PRODUCCION INDUSTRIAL; POLITICAS; MACROECONOMIA; DEMANDA; RESTRICCIONES A LA IMPORTACION;