The transboundary automotive region of Saar-Lor-Lux: Political fantasy or economic reality?

•Neither enterprises nor regional actors share a cross-border sense of togetherness.•Positive and negative border effects cause orientation away from the border.•Many enterprises are nonetheless interested in transboundary relations.•Micro-level approach reveals some potential for the facilitation of cooperation.

In times of globalization and a rescaling of political-economic processes, transboundary cooperation constitutes an important agenda for many border areas. Regional politicians try, for instance, to foster economic relationships to neighboring regions as a way to improve the competitiveness of the entire transboundary area. In order to understand these processes and to contribute to the formulation of suitable strategies, the paper analyzes the effects of borders on transboundary cooperation amongst automotive enterprises in the region of Saar-Lor-Lux which is one of the largest and most institutionalized cross-border regions in Europe. To do so, the paper adopts the perspective of relational economic geography. Additionally, insights provided by the literature on proximity and on barriers toward cross-border relations are used in order to explain the degree of transboundary cooperation. A micro-level approach is chosen and interaction patterns of automotive companies are examined by written questionnaires. In addition, prospects and limitations of cross-border cooperation are discussed through guided interviews with firm representatives and regional stakeholders. In doing so, the paper reveals that many, though not all enterprises are interested in transboundary relationships. Yet, at the same time, various negative and positive border effects are identified: Borders limit, for instance, information flows, cultural and legal systems as well as a sense of togetherness. These border effects, together with a suboptimal organizational structure of the regional automotive industry, constitute significant barriers for extensive cross-border cooperation within the region of Saar-Lor-Lux.