How Did the Automotive Component Suppliers Cope with the Economic Crisis in Hungary?. Issue 8 (13th September 2016)

• Record Type: Journal Article
• Authors: Rugraff, Eric; Sass, Magdolna
• Is Part Of: Europe-Asia studies. Volume 68:Issue 8(2016)
• Page Start: 1396
• Page End: 1420
• Publication Date: 2016-09-13
• Subjects: Europe, Eastern -- Periodicals; Eurasia -- Periodicals; Former Soviet republics -- Periodicals; Soviet Union -- History -- Periodicals; 940
• DOI: 10.1080/09668136.2016.1221062
• Languages: English
• ISSNs: 0966-8136

Abstract

Abstract: This article studies the reaction of automotive component suppliers in Hungary to the 2008–2009 economic crisis. We find that the global suppliers viewed the crisis as an opportunity to reinforce the competitiveness of their Hungarian affiliates by engaging in product and process upgrading, and upgrading through research and development. The regional suppliers combined defensive strategies aimed at reducing costs with offensive measures in the form of product upgrading, production upgrading and expansion into new markets. The local suppliers reduced costs and reduced their workforce, but also reacted offensively by expanding into new markets, upgrading their activity and collaborating with other local suppliers.