In this master thesis it is analyzed how the Swedish automotive cluster will be affected by foreign acquisitions at the end of the value chain. This is a relevant topic as the Swedish automotive industry is a very important industry in Sweden. It is of interest to evaluate how the recent shifts of ownership for the Swedish automotive manufacturers will affect the Swedish automotive cluster as a whole. It is also relevant from a theoretical point of view and this thesis draws on the extensive knowledge about agglomeration and industry clusters. Further, it also exploits the national competitive advantages and selected disadvantages that can affect a national industry cluster. Based on relevant theories, a research model is selected which combines Sweden’s competitive advantages, the Swedish automotive cluster’s dynamism and its development stage into a framework which allows for conclusions about how foreign acquisitions are likely to affect the Swedish automotive cluster. By applying the research model it is shown that the Swedish automotive cluster is a dynamic and mature cluster and that this indicates that the affects of foreign ownership is believed to be positive. The foreign investments show that the Swedish automotive cluster is an attractive cluster that foreign companies want to tap into or invest in. Risks with foreign ownership in industry clusters are also pointed out based on a case study of the Swedish pharmaceutical cluster. The thesis research is mainly based on a phenomenological philosophy and the research purpose is mainly exploratory although some parts are descriptive and explanatory. The method used is qualitative but some quantitative data is used to support relevant findings.