The irruption of autonomous and connected vehicle technologies and the repositioning of the periphery in the European automotive industry

Abstract

PurposeAutonomous and connected mobility technologies have led to a reconfiguration of the automotive industry value chain. This may involve an impact on the geography of the European automotive industry, especially for peripheral countries. The aim of the paper is to analyse the repositioning of a peripheral country (Portugal) in the core-periphery model of the automotive industry derived from this new technological context.Design/methodology/approachAn eclectic theoretical framework, based on the global value chain (GVC) approach, the spatial division of labour and location theory, supports this research. Moreover, an original empirical study was developed. This study comprised a comparative analysis of two samples of firms based on the key variables related to country position. One sample comprised Portuguese traditional automotive firms and the other Portuguese firms linked to autonomous and connected mobility technologies.FindingsThe results highlight the upgrading of Portugal in the European core-periphery model of the automotive industry. This is due to the presence of domestic firms, especially multinationals, linked to autonomous and connected mobility technologies in the country. The decision power derived from their position on the first levels of supply and the added value of activities and technological innovation of these new actors change the role of the country in the European automotive industry. The main implication is that managers of domestic firms and policy makers in peripheral countries can upgrade a country’s position in the European core-periphery model by shifting its competitiveness toward knowledge-based activities linked to the new mobility technologies.Originality/valueThis research is supported by a novel eclectic theoretical framework based on the global value chain (GVC) approach, the spatial division of labour and location theory. Moreover, country position is analysed through empirical evidence. An original comparative empirical study based on the key variables defined under this theoretical framework was developed.