ABSTRACT

The development of integrated global manufacturing in the automobile industry depends on a variety of factors associated with product markets and production processes. The location decisions of multinational enterprises (MNEs) are also a vital consideration. Debate exists about how far global manufacturing has actually occurred in the automobile industry. The concept of a ‘world car’ pioneered by the Ford Motor Company was based upon relatively standardised products being built from standardised component parts, common production systems across countries and location decisions that would yield cost advantages in economies of scale and specialised plants.