Project Management in the Automotive Industry A Critical...

The chapter ‘Project Management in the Automotive Industry’ by Christophe Midler and Christian Navarre from The Wiley Guide to Managing Projects (September 2004) traces the inception and transformation of project management in the automotive industry from the post-war period to the early years of the new millennium. It is an interesting article which categorizes the period into four phases on the basis of organizational structure and strategy pertinent to most of the automotive manufacturers in each era. This classification helps the authors elaborate on the change in corporate structures and relationships within the organization and with their subcontractors over the years. Examples of leading car manufacturers have shown how project†¦show more content†¦Rather than the traditional vertical organizational structure, this phase can be better represented by a matrix chart which includes the parent organizations, allied organizations, subsidiaries, brands and subc ontractors. Nevertheless, a visual representation of matrix organizations has challenged managers due to the complexities of secondary relationships within the matrix. The characteristics of each phase of automotive project management have thus been explained elaborately. In fact, the time periods have been chosen aptly since there is a clear differentiation of one phase from another. But since the underlying causes for change have not been discussed, there seems to be a discontinuity between the phases. Market trends and customer demands play a major role in determining the decisions taken by car manufacturers and are today the driving force behind product innovation. This competitive environment which, as stated by the authors in the introduction, largely influences product management strategies, has not been discussed. Simultaneously, the regional economic health and prices of commodities such as oil and steel which drive the automotive industry influence corporate strategies. 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