From Fordism to Lean Management: Main Shifts in Automotive Industry Evolution within the Last Century

The paper outlines the main shifts in production, organizational culture and supply chain management in automotive industry during the last century and underlines key factors in car industry development. Car manufacturers have undergone important changes in production technology and philosophy which have brought about dynamic changes in operations management and organizational culture and have extended to a very complex and challenging supply chain integration. Carmakers face harsh competition and thus strive to improve their overall performance in their attempt to overcome the current slow market revival and remain globally competitive. The paper focuses on the Dacia-Renault case study and uses the case research method to describe how the different shifts in automotive industry have impacted the Romanian brand. Relevant data and indicators for the impact of Dacia’s evolution on economic, social and environmental level are analyzed and compared and provide an overview on car market dynamics and future perspectives. Results show that drivers of carmaker competitiveness are mainly related to market specifics, sensible and subjective customer criteria as well as an important brand awareness. The research provides an overview of the features prompted by the different shifts in production systems during the last century and provides recommendations to improve competitiveness and assure sustainable development of car manufacturing companies, automotive industry and their supply chain.