Title: The internationalisation of the automobile industry and the roles of foreign subsidiaries

Authors: Marcos Amatucci; Fábio Luiz Mariotto

Addresses: ESPM, Rua Dr. Alvaro Alvim, 123, Room C-404, Vila Mariana – 04018-010, Sao Paulo-SP, Brazil. ' Management Department, EAESP/FGV, Av. 9 de Julho, 2029, Bela Vista – 01313-902, Sao Paulo-SP, Brazil

Abstract: This study analyses the change in the roles of Brazilian subsidiaries of automotive multinational corporations, specifically those that have developed products in Brazil. The main goal is to offer a causality hypothesis for the reasons why subsidiaries of the same sector in the same country have different roles in their corporations after developing engineering capabilities for innovation. The analytical framework involves a discussion of subsidiary development and the degree of internationalisation of each company. The study was carried out between 2007 and 2009 at five Brazilian subsidiaries: Renault, General Motors, Volkswagen, Fiat, and Ford. The results suggest that these subsidiaries occupy a continuum of corporate roles that vary from global centre of excellence (CoE) to local implementer, with intermediate categories. The construction of an explanatory hypothesis results in a ten-step model for the internationalisation process of the auto industry.

Keywords: automotive MNCs; multinational corporations; internationalisation process; subsidiary role; product development; international management; automobile industry; foreign subsidiaries; Brazil; Renault; General Motors; Volkswagen; Fiat; Ford.

DOI: 10.1504/IJATM.2012.046004

International Journal of Automotive Technology and Management, 2012 Vol.12 No.1, pp.55 - 75

Published online: 20 Aug 2014 *

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