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Abstract
This paper examines the impact of the creation of the Single European Market (SEM) by exploring the restructuring of the automotive production sector in Europe and its effect upon the older industrial regions of the UK. The paper is divided into four sections. Firstly, the importance of automotive production as a key sector in understanding the true impact of restructuring for the SEM is outlined. Secondly, the directions and outcomes of restructuring in the sector are detailed. Thirdly, the specific impact of these changes on automotive production and the older peripheral regions of the UK is considered. Finally, some conclusions and future directions for policy are discussed in relation to the true shape and form of ‘the new Europe’. The paper argues that the SEM will reinforce and deepen the pervasive and divergent effects of industrial restructuring within its boundaries due to economic relations from without.