Changes in Strategies of Automobile Manufacturers and Suppliers Within and Outside the TTIP

The purpose of this thesis is to conduct a profound study of the proposed Transatlantic Trade and Investment Partnership (TTIP) on the automobile industry in general, and on the competitive position of five automotive players in specific. The five players that are identified for this research study are – Volkswagen, BMW, Ford, GM and Leoni. This thesis also encompasses a study of the concepts of globalization, free trade and free trade agreements (FTAs). Followed by a theoretical discussion on the aspects of FTAs, previous case studies of FTAs, TTIP proposals and provisions, this dissertation will make use an analytical framework devised by Alan Rugman to study the impact of NAFTA on Canadian manufactures. Information and insights are collated from literary sources like – popular business publications (Forbes, Financial Times, and IndustryWeek), academic books on the subject of globalization and free trade agreements, research articles, and company presentations and annual reports. The research methodology employed for this study is based on the case study approach, where different types of evidence collected will help in applying appropriate tools of analysis. The results of this study indicate that TTIP will lead to sweeping changes with regards to the industry and trade landscape, as well as strategies of individual firms being studied. Finally, this thesis includes a juxtaposition of the current competitive status of each firm under study; with the changes that TTIP is expected to bring about.