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The automotive industry is a major pillar of the modern global economy and Europe is one of the key players. It has a unique role to play in Europe in - ployment, manufacturing, R&D, transportation and investment, and there are crucial challenges and opportunities ahead. We shed light on a broad range of issues - globalisation and restructuring, trade and foreign direct investment (no- bly in China and Russia), innovation, regulation, and industry policy - and put a special focus on the new member states. While change may be inevitable, progress is not. This book shall serve as a map to all stakeholders: business executives, policy makers, investors and scholars. th The contents originate from the 8 European Competitiveness Report 2004 p- ject of the European Commission. They document the contribution made at the Zentrum für Europäische Wirtschaftsforschung (ZEW) - Centre for European Economic Resarch - in Mannheim, Germany, in cooperation with several external researchers. We as editors wish to mention and sincerely thank the many persons and institutions who have helped us in this effort. Special thanks go to the c- tributors: Thomas Cleff (Professor at the University of Applied Sciences in Pfo- heim, Germany), Stefan Lutz (then researcher at the Centre for European E- nomic Resarch, Mannheim, Germany), Alfred Spielkamp (Professor at the U- versity of Applied Sciences in Gelsenkirchen, Germany) and Waltraud Urban (Vienna Institute for International Economic Studies in Vienna, Austria).
