The effects of economic convergence on the formulation of marketing strategy: an analysis of the European automobile industry

This article investigates the transition of the business environment of the automotive sector in Europe through examining data sets between 1994 and 2004. The dynamics of the internal market, fiscal convergence, industry specific policy and measures such as competition directives, WVTA, block exemption seem to have affected intra trade, price convergence and national market dominance. The findings of this study indicate that the environmental transition in Europe promoted the EU automotive market to become more competitive and yet less distorted and less dominant which provides particular marketing implications in terms of marketing cost and networks, product attributes, and pricing strategy.