Published online by Cambridge University Press: 02 July 2026
This chapter examines the response of car manufacturers to market integration through the cases of BMW and VW. It finds despite their differences, these car companies embraced the opportunities afforded by the Single Market, contributed to the standardization discussed in Chapter 2 through their widespread supply and value chains, and mobilized their regional interest associations to mitigate the challenges of market integration by shaping regional policies in their favor. VW’s expansion was production oriented, and it paired its “volume and diversity” strategy with a Sloanian approach to managing its growing family of brands. Conversely, BMW’s internationalization was distribution oriented, and it took a “quality” approach to profit and relied on a highly-skilled work force and huge network of specialty suppliers. This contrast, and the debates that took place within regional BIAs, demonstrates how different automakers navigated the changing European business environment of the 1980s and 1990s.
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