This book presents an analysis of some of the changes that have transformed the automobile industry in the last thirty years illustrating some of the most significant consequences of globalization. Focusing on the response of Europe's policy makers, it analyzes government-industry relations at both national and transnational levels, demonstrating how national policy instruments have been eroded by regional, political and economic integration. There has been a significant and irreversible shift in the locus of decision-making power from nation states to the regional level in the automobile sector.