Strategies of TNCs regarding the internationalization of car production and sales

Abstract

Transnational corporations are the main subjects of globalization processes. Today, the study and analysis of strategies implemented by TNCs in international markets is relevant. The article examines the activities of the main European automotive multinational companies. First, the structure of global car production by the French TNCs "Groupe PSA" and "Groupe Renault" in 2000 and 2022 was analyzed, and it was concluded that this structure has undergone serious changes due to the increase in the rate of internalization, and France itself is losing its importance as a production base. Secondly, the analysis of German automobile concerns demonstrated that Germany is consistently a key production site for automobile companies. Thirdly, it was found in the study that in general for European automobile TNCs since the beginning of the XXI century. a gradual increase in the index of transnationalization is characteristic. The average value of this indicator in 2020 was 63.7%. Fourthly, the article highlights two types of TNCs: bi-regional and global. Accordingly, the authors classified the Daimler Group as a global TNC, the BMW Group as a bi-regional TNC, the Volkswagen Group as a bi-regional TNC with a focus on a foreign region, and the French Groupe Renault and Groupe PSA remain regional TNCs. Fifth, the transformation of the strategies of European automobile companies depends on the future dynamics of the market based on the ratio of indicators of the volume of production and sales of passenger cars. Ago. the authors propose four possible different scenarios in which the strategies of European car companies in the world market can take different forms.