The automotive industry is a major pillar of the modern global economy and one of Europe's key industries. There can hardly be any doubt about the important role of this sector as an engine for employment, growth and innovation in Europe, and there are crucial challenges and opportunities ahead. The authors shed light on a broad range of issues - globalisation and restructuring, trade and foreign direct investment, innovation, regulation, and industry policy - and put a special focus on the new member states. While change may be inevitable, progress is not. This book shall serve as a map to all stakeholders: business executives and policy makers, investors and scholars.

Oliver Heneric: Since 2001 Oliver Heneric has been working in the Department of Industrial Economics and International Management at ZEW. His current research focuses on venture capital and industry analysis. Georg Licht: Head of the Department of Industrial Economics and International Management at the Zentrum für Europäische Wirtschaftsforschung (ZEW - Centre for European Economic Research), in Mannheim, Germany. Wolfgang Sofka: Started working for the Centre for European Economic Research (ZEW), Department of Industrial Economics and International Management, in February 2002. His primary responsibilities lie in the field of industry analysis with a main focus on international competitiveness.