Publication

This working paper examines the evolution of production networks in the automobile industry, focusing on the dynamic shift in product architecture strategy and style of production systems. It also contrasts the differences between Japanese and US assemblers, for example in terms of efficiency and context specific skills. The author highlights the key elements of US 'modularization strategy,' and the way only a limited shift toward modularization has occurred in Japan. The author concludes that the divergence between Japanese and US firms in their strategic focus and skill utilization is likely to remain.