A transition in the automotive industry: How are new mobility technologies affecting value chain governance?

Purpose New mobility technologies linked to digitalization, connectivity and automation of vehicles are transforming the traditional governance model of the automotive industry value chain. This paper analyses the types of relationships within the value chain as well as how decision-making power and added value are distributed. Design/methodology/approach The theoretical framework used in this research integrates the global value chain (GVC) and supply chain management (SCM) approaches. The empirical study consisted of a comparative quantitative analysis among new mobility firms and traditional automotive firms in the Spanish automotive industry value chain. Findings The results show that the entry of new actors related to digitalized, connected and automated vehicle technologies are changing traditional relationships. They are relationships of low dependency with durations that depend mainly on the time required for project implementation and are characterized by scarce cooperative practices among these new actors and traditional automotive firms. This transformation is influencing both decision power and added value distribution, in that traditional automotive firms are losing some of the former and control over the latter in favour of these new actors. The results have implications for countries where the traditional automotive industry is present. In the new governance structure, they should change the focus of their policies to the development of the new mobility firms. Originality/value The research is supported by an eclectic theoretical framework and by an original empirical study; specifically, a quantitative comparative analysis among the different participants in the automotive value chain.