New Challenges for the Automobile Industry as GERPISA Develops a New Scientific Program

A scientific approach does not necessarily mean observing transformations from the standpoint of Sirius. The observer's status as an outsider is not truly acceptable from an epistemological point of view. On the contrary, it is only when the observer becomes immersed within the field of analysis through direct relations with actors observed that he/she can apprehend these changes by applying a rigorous methodology that others, due to their function (journalists, consultants, etc.) can not. GERPISA's first two international programs have demonstrated the importance of such an approach which includes a keen knowledge of the automobile industry (high standards for empirical description) coupled with fruitful exchange of results within the network so as to confront interpretations and elaborate a synthetic grill for analysis. Going beyond the actual deconstruction of generalized and appeasing discourse based on the idea of the existence of a "one best way" (lean production as well as globalization), GERPISA's research has underlined the plurality of industrial models, the diversity of firms' globalization strategies, and the heterogeneity of automobile areas. The necessity to reflect upon and elaborate theories relative to industrial models and strategies constitutes an extraordinarily rich methodological prerequisite. If these research projects achieve their goals (publications emanating from the first and second programs should be available in 2000), the result will be the emergence of new issues.

These past months have witnessed the development of mega-alliances bringing together firms from different regions of the world, be it among automobile constructors (Ford-Mazda-Volvo, Chrysler/Daimler, Renault-Nissan) or equipment suppliers (crossed mergers and acquisitions between Americans in Europe and Europeans in North America, new challenges presented by emerging countries, and the penetration of Japan and South Korea).  The search for a critical size is no longer limited when considering the necessity to absorb R&D investments required by technological change, participate in globalization, and respond to increasing financial restraints. This is accompanied by focusing on a limited number of domains. Automobile constructors are taking leave from their equipment supplier subsidiaries (the separation of Delphi from GM, Viseton from Ford, Faurecia from PSA), are pursuing outsourcing policies, and redefining the perimeter of their core competencies which contribute to their competitive advantage. One could deduce from this that the development of modular production would become the obvious trajectory of the automobile industry, one that will increasingly attract both automobile constructors and equipment suppliers. However, this is far from being as homogenous and irreversible as it seems.

Despite intensive experimentation, especially in Brazil, automobile constructors hesitate to embark upon this path in light of technical limitations linked to the architectural nature of an automobile product as well as socio-economic issues associated with this type of production. Indeed, American unions have slowed down the establishment of General Motors's Yellowstone project, and Japanese constructors, starting with Toyota, do not seem willing to relinquish those competencies which guarantee them a strategic position within the organization of the automobile realm. In this context, the question of ocusing at the core competencies that serve as a basis for a firm's competitive edge offers a variety of responses, especially if, for example, one opposes those like GM and Ford, who demonstrate an emphasis on the related activities, while others aim at consolidating their technical competencies (PSA's diesel motor, for example).

Once again, it becomes necessary to study the diversity of an automobile firm's strategic choices in order to better explain them and discover the source of their existence. To what extent do a firm's profit strategies influence the changes underway? Does the establishment of new alliances between immaterial activities (conception, finance, distribution, automobile usage) and manufactured production (from the standpoint of equipment suppliers and automobile constructors) contribute to the emergence of new automobile system configurations?

These recent issues deserve to become the focus of a new GERPISA international research program. The CoCKEAS project supported by the European Commission in the framework of the Fifth Framework Programme  (discussed in this issue of GERPISA's newsletter, and the theme of GERPISA's next workshop to be held on December 10, 1999) is the first step towards the definition of a new program. GERPISA network members are invited to participate in the collective elaboration of this program, notably by sending in their contributions for an enriching debate to be held in our GERPSIA newsletter.