Introduction

Automobile production is a strategic industry, forming the backbone of the manufacturing sector in many countries. Including parts-and component-manufacturers, it accounts for over 5% of the world’s total manufacturing employment (OICA, 2012) and is a major contributor to global production, trade, and R&D investments. Its economic importance also stems from extensive linkages with related industries, be it the consumption of steel, iron, aluminium, glass, plastics, glass and rubber; or production of parts and components; and its range of related services such as distribution, maintenance and mobility services. Each direct job in the auto industry is estimated to support ‘at least another five indirect jobs [. . .], resulting in more than 50 million jobs owed to the auto industry’ (OICA, 2012). Latecomer economies, especially those with a substantial internal market, have therefore traditionally tried to develop the automobile industry as a catalyst of industrial development – including China, South Korea, Brazil, Mexico, India and Thailand (UNIDO, 2003).