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Reciprocal Coupling and Industrial Upgrading in the Automotive Industry: The Balance of Interplay

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Local Dynamics of Industrial Upgrading

Part of the book series: Economic Geography ((ECOGEO))

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Abstract

Scholars in the literature of industrial governance have argued that the automotive industry is subject to both captive and modular governance. Automakers play a dominant role due to high asset specificity and the complexity of inter-firm knowledge transactions.

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Notes

  1. 1.

    http://auto.gasgoo.com//News/2011/03/020839233923298157278.shtml.

  2. 2.

    In 1988, the central government designated six SOEs as the ‘Three Big & Three Small’ group. Projects beyond these groups generally would not be approved. They are FAW, Second Auto Work (renamed as Dongfeng in 1990) and Shanghai Auto Work; the three small are: Beijing Auto Work, Tianjin Xiali Corporation; and Guangzhou-Peugeot joint venture.

  3. 3.

    In equity share, Chinese partners held 46% from the GAIG, 20% from the Citic Auto China, and 8% from China International Finance Ltd. French partners held 22% from PSA-Peugeot and 4% from Paris Banque Nationale.

  4. 4.

    Source: Interview with the former vice president of Guangzhou Seat Factory of GAIG, on July 19, 2010, in Guangzhou.

  5. 5.

    GAC also established another two joint ventures: Guangqi-Hino in 2007 in Guangzhou making commercial vehicles; Guangqi-Fiat in 2009 located in Changsha (Hunan Province) manufacturing passenger vehicles and engines.

  6. 6.

    http://auto.ifeng.com/roll/20100601/328185.shtml.

  7. 7.

    It refers to the number of disqualified part per million. For instance, 100 ppm means there are 100 disqualified products among 1 million manufactured products.

  8. 8.

    Data are from interview with the director of sourcing department of Guangqi-Honda on May 21, 2010, in Guangzhou.

  9. 9.

    Mixed-line production: manufacturing different vehicles in the same production line.

  10. 10.

    http://www.cb-h.com/news/qcr/2008/520/0852010584C006K71C200JK7993FCC.html.

  11. 11.

    Interviewee in Guangqi-Toyota declined to offer this information.

  12. 12.

    Sources: two interviews with the vice directors of production department in the joint ventures in Guangzhou on May 21, 2010, and June 1, 2010.

  13. 13.

    From a public interview with the director of GAERI: http://auto.xinmin.cn/rollnews/2010/09/04/6649866.html.

  14. 14.

    There are various difficulties to approach to relevant data to this issue. Most of the information about the appropriate brand of GAC was kept as confidential.

  15. 15.

    http://news.21cn.com/caiji/roll1/2012/01/14/10495276_4.shtml.

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Authors and Affiliations

  1. School of Tourism Management, Sun Yat-sen University, Guangzhou, China

    Yi Liu

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Liu, Y. (2020). Reciprocal Coupling and Industrial Upgrading in the Automotive Industry: The Balance of Interplay. In: Local Dynamics of Industrial Upgrading. Economic Geography. Springer, Singapore. https://doi.org/10.1007/978-981-15-4297-8_7

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