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The 2008-2009 automotive industry crisis: Global trends and firm-level effects in Central Europe
Submitted by Petr Pavlinek, Charles University in Prague, University of Nebraska at Omaha on Wed, 02/29/2012 - 21:46
Publication Type:
Conference PaperAuthors:
Petr PavlínekSource:
Gerpisa colloquium, Paris (2012)Keywords:
Automotive industry, Czechia, economic crisis, global trends, SlovakiaAbstract:
This paper examines the 2008-2009 economic crisis in the automotive industry. The uneven nature of the crisis contributed to the gradual shift in production from traditional core areas of the global automobile industry to selected less developed economies. In this context, the paper analyzes the firm-level effects of the economic crisis in the Czech and Slovak automotive industries as two examples of automotive industry peripheries that were integrated in the European automobile production system and experienced rapid production increases after 1990. The analysis draws on unique data collected during the survey of 274 Czech-based and 133 Slovak-based automotive firms conducted in Fall 2009 and Spring 2010, 98 company interviews conducted with automotive firms in Czechia in 2010 and 2011, and on 30 interviews conducted in Slovakia in 2011. Changes in revenues, production and employment during the economic crisis are compared between Czechia and Slovakia, and are analyzed according to ownership, the involvement of firms in the automotive value chain, and the firm size. The article also investigates plant closures and relocations in the Czech and Slovak automotive industries during the economic crisis.
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