Examining the realignment strategies of automobile production bases in Southeast Asia: The case of Japanese automakers

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Abstract:

Japanese carmakers have high production and sales volumes in ASEAN countries. However, the current trend of economic integration here will have deep effects on the competitive patterns and geographic distribution of production. This research examines the realignment strategies of production bases of automakers. In order to examine the realignment strategies of production bases, the productive strategies defined in this paper is based on the assessment of two variables: first, the geographic distribution of carmakers' factories, second the specialisation of production in each country. This approach allows us to consider several scenarios regarding the combinations of the redistribution of production in the coming years, and to asses each scenario's feasibility, strengths and weaknesses. Our main findings are as follows: first, automakers are recommended to consider pattern WX in the second half of the 2010s. Second, in the second half of the 2020s, it might be possible to adopt pattern WX. Copyright © 2018 Inderscience Enterprises Ltd.