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Peugeot Location Theory

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Introduction

Peugeot Location Theory The development of an industrial plant in one particular place is never accidental or the result of chance. The decision to put a factory in one place rather than another is always based of practical reasons. The sitting of the Peugeot plant in Coventry is a typical example of industrial planning. Coventry has had a long history of manufacturing since the start of the industrial revolution in the 18th century. This was due to the concentration of the textile industry in the midlands. A number of factories began making sewing machines and soon bicycle production was in full effect as bicycles were "all the rage" of this time. Two bicycle engineers (George Singer and William Hillman) ...read more.

Middle

In 1938, with World War 2 looming, the government persuaded major manufactures to set up new factories in case they were needed for war production. These "shadow factories" were set up on the Stoke plant and new factories on the city boundary at Ryton and Banner Lane. The shadow factory at Stoke is now used for warehousing and is known as "C" block. The Factory at Ryton is now the manufacturing plant, building the Peugeot 306 and the plant in Banner Lane is now the Massey Ferguson Tractor Company. In 1967 the Rootes group was taken over by the Chrysler Corporation of America so Stoke and Ryton, plus others in Britain became Chrysler plants. By 1978, the Chrysler Europe Empire was operating under poor trading conditions due to the Arab oil crisis of 1974-77. ...read more.

Conclusion

This meant there was no need to advertise vacancies, as word of these placements would be told by word of mouth. This mobile skilled labour force would therefore move from company to company with little effort. This process had the effect of pushing up wage rates as the companies were in great competition for workers. The economic recessions of the early 80's destroyed UK manufacturing and unlike earlier recessions, the West Midlands also suffered badly. Coventry lost many of its major manufacturing companies and those that remained were drastically reduced in size and work force. Coventry's economic base is now heavily dependent on the service sector rather than manufacturing. However, the redevelopment of the transport system saw the importance of Coventry's manufacturing base so the city has many good roads. Motorways surround the Coventry area. M6 to the north, M1 to the east, M40 and M42 to the south and M5 to the west. ...read more.

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