Strategische Implikationen einer geringenFertigungstiefe für die Automobilindustrie

In the German automobile industry the vertical integration, as an indicator ofvalue added, is on average low. Beyond the argument of relative high labourcosts for manufacturing, several specific reasons for the level of vertical integration,linked to the flexibility of business administration and the requirementsof microeconomic mechanisms in the industry, can be found. Theanalysis based on empirical data including lessons from the early Americanautomobile industry and theoretical explanations underlines the diversity ofdecision criteria towards a high or low level of vertical integration. The resultsfacilitate the decision making of the OEM’s on vertical integration....