The Impact of Internationalisation and Rationalisation of Production on the Spanish Automobile Industry,1950–90

Abstract

The author examines the impact of the internationalisation of automobile production on the local production system in Spain, with emphasis on the relationship between the assembly and supply industries. After an introduction to the issue of linkage formation in the automobile industry, a historical overview of the development of the Spanish production system since the 1950s is presented. This is followed by an analysis of recent changes in the production and procurement strategies of international producers, in particular the process of rationalisation and the implementation of just-in-time supply systems. It is concluded that the process of internationalisation has brought on a radical transformation of the local production system. This has had serious consequences for the position of certain parts of the production system, notably the indigenous suppliers; such negative effects, however, should be weighed against the fact that internationalisation has also produced rapid growth and modernisation of Spanish industry in the last two decades.