New mobility technologies and regional status in the automotive industry value chain: the case of Spain and Portugal

Abstract

New mobility technologies related to autonomous, connected, and shared vehicles have prompted the entry of new players into the automotive industry, which has influenced the industry's traditional configuration of regional status. Under the global value chain (GVC) approach, this research proposes a new framework for defining a ‘core–periphery’ spatial model of the automotive industry. Under that model, based mainly on the key variables of domestic firms linked to new mobility technologies, analysis is made of the comparative status of regions of the European automotive industry traditionally regarded as peripheral (Portugal) and semi-peripheral (Spain). Results indicate that domestic firms located in each of those two regions do not differ in terms of decision-making power, first-level supply positioning, added value of activities, and technological innovation. This implies that the two regions now share the same status within the new (autonomous, connected, and shared) mobility value chain. This has relevant implications for public policies throughout the European automotive industry. Policies should focus on innovation in new mobility technologies and on the creation of an ecosystem adequate to develop strong domestic capabilities around these new mobility technologies, in order to ensure more favourable regional status in the spatial model of this competitive industry.