FIR Annual Conference 2018 – Automotive industry: Eternal force of the Czech economy? /3.10./

25 Sep

The global economy has been undergoing rapid changes in the last decades. The globalization and interdependence show, that the global shifts can be both crucial and fast. Seeking for efficiency led to establishing new production networks and chains, where parts of the final outputs became produced in various destination. The traditional models of production of all components from one factory became obsolete. Nevertheless, the global nature of production is also facing challenges that arise from fast demand, quality, immediate availability and also from local conditions for businesses.

The automotive industry as one of the core sectors of the EU economy is in addition exposed rapid to the technological challenges, where traditional cars, engines from the 19th century, and ways of transportation are being replaced by more efficient motors and at the same time are being challenged by electricity-based vehicles.

The CEE region plays a crucial role for the automotive industry. During the last decades, the entire region became an industry hub for not only European car producers and countries such as Czechia or Slovakia, Hungary or Poland now belong to the industry leaders – with its production of cars and car parts they supply the entire sector worldwide.

However, the mentioned challenges together with requirements on low emissions and safety raise questions about transformation the whole sector in the EU ant its member states.

The unprecedented shifts we are witnessing will definitely have impacts on the economy, its structure and nature. What can (still) Europe, the CEE and Czechia do to be among the winners in this fast changing environment?