La Lettre du GERPISA no 115 (july 1997)

Programme News - Michel Freyssenet

A few Research Questions on the Automobile Firms' Internationalization Strategies and Trajectories, and their Implications on the Policies Produced, Productive Organization and Work Relationships

These questions should complete and enrich the analysis plans already elaborated and presented in precedent letters. Some of them could give rise to plans for publication which would be submitted to any network members concerned or which could be launched on theri own initiative.

1. The discussion on the internationalization strategies of Ford or GM in particular, showed the necessity to define in a precise way what we meant by a world car or by a world platform and the consequences of this distinction, if it proved to be pertinent, on the organization of the design and the manufacturing of vehicles. Are we dealing with two different strategies, or can they be put in the same category.

2. The same discussion reminded us that we should take care to distinguish between the strategy displayed by a company and that which is actually put into practice, the difference being due to compromises made if you take into account constraints which weigh on the company more or less temporarily, either due to mistakes made in the evaluation of the means to be used or to be made compatible, or due to a modification in orientation while in progress.

3. The analysis of internationalization trajectories could be the opportunity to verify the links between these trajectories and the profit strategies of the firms as we see them in the light of the first programme: "volume", "volume and diversity", "quality and specialization", "permanent reduction in constant volume costs", "inovation and flexibility", etc.. Afirst attempt at this was made during the colloquium. It is a contribution to future discussion between researchers working on the internationalization trajectories.

4. A debate took place on the question of knowing whether the current movement of internationalization in automobile industry firms, especially in so called developing countries, called into question the design of cars and the way of manufacturing them. Two orientations are competing on this point: "the modular consortium" (the assembly of modules manufactured by first rate suppliers set up on the site) put into practice by Volkswagon and Mercedes, and "reflexive production" (fixed station assembly by a few workers) which Toyota and Honda seem to be taking up again today for vehicles in small series. The growing diversity which internationalization is amplifying would imply looking for very flexible forms of production, which would not demand very high investment for manufacturers. A plan for a book around this theme "productive organization and new ways of manufacturing", was discussedand could quite easily be realized.

5. The same goes for the question of trade unions' strategies up against the internationalization of firms. Former studies tend to show that until now world coordination has been difficult to set up and even more difficult to make efficient. In fact the type of internationalization which has prevailed until now has put sites into competition very little until now, apart from a few sites. It appears that it is not the same for the formation of regional ensembles within which customs barriers are disappearing: The European Union, NAFTA, Mercosur, etc. The necessity to coordinate appears to be vital. Some papers presented at the colloquium, as at work days in Paris, on attempts made by trade unions in recent years in the regional ensembles could give rise to comparison and make for an original publication.

6. With regard to productive organization and work relationships, the big question is to know if the companies should try to transplant their industrial model, should adapt it or even build another one according to the context, and in this hypothesis how they can articulate different industrial models on a world level. There probably ins not one single answer. We would need to examine the subject on the one hand in relation to the profit strategies followed which delimit the means that are possible to use, compatible with them, and on the other hand in relation to the importance of the national wage relation policy or the degree to which it is weakening or being called into question.

7. The productive organization of internationalized firms must of course agree to encompass design-manufacture-commercialization, suppliers and distributors included, but also the logistics of stock supply, client services, spare parts, financial services....Besides the fact that these activities occupy more and more workers, they should develop even more strongly with the internationalization that is in progress.

8. Internationalization, hierarchical organization, and the concentration of suppliers and their involvement in the development of the product raise the question of the manufacturers mastery of the chain of value. There also, the profit strategies followed should shed some light on the types of link with the suppliers that they work with.

9. Every internationalization strategy and the type of vehicle offer that is linked to it anticipates the demand, especially in developing countries. However there is still a lot of uncertainty on this subject. If we recall the approach of European genéralistes??????????after the war, which consisted in following the rise and the organization into hierarchy of incomes by raising the range progressively, should firms who set up in developing countries not do the same by offering adapted products to the categories of the population likely to experience a progressive rise in their standard of living.


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