Global Shifts in the Automotive Sector

The automotive industry is undergoing fundamental organizational changes related to the transition from the production of internal-combustion-engine vehicles towards the production of low- or no-emission powertrain technologies. The ongoing transformations in this sector are shaped by the dramatically changing geopolitical context – including the technological rivalry between China and the West.

In response, the new publication “Global Shifts in the Automotive Sector. Markets, Firms and Technologies in the Age of Geopolitical Disruption” by editors Martin Krzywdzinski, Head of the WZB’s Research Group Globalization, Work, and Production, Grzegorz Lechowski (WZB), John Humphrey (University of Sussex) and Tommaso Pardi (École Normale Supérieure Paris-Saclay) offers an in-depth examination of the automotive industry, with emphasis on the ongoing transformations in the international divisions of labour, the regional and national production models, and the established value-chain relations. Collecting contributions from established and emerging scholars from a range of disciplinary perspectives, the book brings together empirical research on different regions relevant for the changing globalized production system of the automotive sector – including the European Union, East Asia, and North America.

In their introduction the editors emphazise the dynamic transformations currently taking place in the global automotive industry. It highlights key technological innovations such as the transition from the internal combustion engine (ICE) to electric vehicles (EV), advances in autonomous driving, and increased vehicle connectivity. It raises important questions about the impact of these innovations on traditional automakers, market structures, and global supply chains. The chapter places these technology changes in the context of the industrial policies shaping the future of the industry, with a particular focus on the evolving competition between established automotive giants and new market entrants from emerging economies, above all China. The broader implications of these changes are explored through the lenses of global value chains, productive models, and international core-periphery dynamics.

08/09/25, kes