Integrated peripheral markets in the auto industries of Europe and North America

Abstract

This paper discusses the evolving geography of the motor vehicle industry in Europe and North America in the context of core-periphery relationships. Historically, the motor vehicle industries in both regions have been highly clustered in core areas. Since the late 20th century, peripheral areas have taken on more prominence in the two regions’ motor vehicle industries, a trend that has accelerated in the 21st century. The growing importance of the periphery has given rise to the concept of the integrated peripheral market. This paper shows that Mexico and Central Europe are prominent examples of integrated peripheral areas in the motor vehicle industry. It analyses changes in both regions’ production in light vehicles between 1990 and 2015. Both Mexico and Central Europe have experienced substantial increases in assembly of vehicles produced primarily for export. The rapid increase in production has occurred since integration into regional free-trade agreements with neighbouring countries.