• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Briefly describe the history of the car industry, focussing on its locational changes.

Extracts from this document...

Introduction

Locational Case Study The Growth and Spread of the Car Industry Briefly describe the history of the car industry, focussing on its locational changes. The first motor car was built in 1885 by Karl Benz, but it was the USA that established early dominance in the industry by introducing production-line assembly. Whilst global production is still dominated by developed countries, a number of developing nations, e.g. Brazil and South Korea are improving their production rates. The industry became multinational in 1911 when Ford chose Manchester as the first location outside of the United States. In the UK, the country was selected by three of the leading Japanese manufacturers (Nissan, Toyota and Honda). After a collapse of production from 1975 to 1982 in the West Midlands, there was room for new industry and companies to move into the area to make use of the experienced labour. Nissan began in Sunderland from 1986, and Toyota and Honda followed in Derbyshire and Swindon respectively in 1992. ...read more.

Middle

Toyota decided to locate in France for a variety of reasons, with political factors having a strong emphasis. * Considered Prague, but poor labour climate put Toyota off. * Toyota was uneasy about uncertainty of Poland's prospects for EU membership and how this could affect future exports, labour and economy. Decided against Poland because it was too much of a risk. * Toyota wanted to 'break' the French car industry. The French said they have a "greater degree of nationalism" because the market is so difficult to break. They prefer to purchase French-built cars. Locating in France would provide a firm base to begin to sell more cars there. * The UK was considered but turned down after Toyota stated "we would prefer to [locate] in continental Europe rather than Britain". They did not wish to place all of their production at one site on the edge of Europe e.g. UK or Poland. ...read more.

Conclusion

* Good regional raw materials * Large pool of skilled labour * Near Santos - huge port complex * Mature industrial contacts * Largest market internally * Sao Paulo hub of road, rail, air and telecommunications * Welcoming state and federal governments * Once Sao Paulo established, other southwest locations developed (Rio de Janeiro and Belo) - 1987 Fiat opened employing 10,000 producing 130,000 vehicles per year * Other regions now attracting investment - high labour costs in Germany forced Mercedes-Benz to locate in Brazil. * Renault, lacking space in Europe, moved to alternative locations within Brazil, for the following reasons: * High quality of life * Improvements in port, with low handling charges * Proximity to large southeast markets * Near expanding markets elsewhere * Low tax Summary: Foreign transnationals assembling components mainly produced in LEDCs for Brazilian market. Then they used Brazil to produce for Brazilian market, and then used Brazil to produce for expanded South American market also. Now exporting parts and vehicles to other LEDCs. ?? ?? ?? ?? Nick Dunn ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. The structure of the airline industry.

    The operate in 37 different cities, chosen as much for their location "as for the fact that they are served by few airlines or monopolized by the majors." Airtran is a regional carrier, even though they fly into the Grand Bahamas.

  2. The Quest for Optimal Asset Allocation Strategies in Integrating Europe.

    I will assess the risk-return trade-off by using the reward-to-variability ration, or more popularly referred to as the Sharpe ratio. It is defined by where E (RP) denotes the expected return of the portfolio; RF denotes the return on the risk-free asset; and ?

  1. Chinese car market overview. Citroen case study

    The result has been a quadrupling of GDP since 1978. Measured on a purchasing power parity (PPP) basis, China in 2004 stood as the second-largest economy in the world after the US, although in per capita terms the country is still poor.

  2. Are scholars justified in using the term 'Golden Age' to describe the economic history ...

    availability of cheap and efficient energy supplies helped to boost the economy. Also the introduction of the Bretton Woods system of fixed exchange rates and convertible currencies helped to lower inflationary growth and add stability in financial markets as well as encouraging global trade.

  1. Sports manufacturers

    Nike's involvement in this project could open them to public criticism concerning immigrant labor. Additionally, in the wake of the events of September 11, Americans are wearier of foreigners and more concerned with homeland security. The bridge might threaten Nike's reputation.

  2. The airline industry

    2.2 British Airways and the low cost airlines The first strategic choice selected for evaluation is BA's decision to counter the rapid success and expansion of low cost airlines (See figure 2.3). It must be noted that there are two distinct markets within the airline industry: Point-to-Point, serviced by the

  1. Case Study: The Home Depot

    They do that with a product range with 40,000 to 50,000 products in different variations. Their Human Resource Policy which supplies them with the next core competency and that is their strategy to get highly skilled personnel via using several kinds of methods during the interviewing process and training period of the employees.

  2. Economic growth in South Korea

    On the other hand, as it is not the main reasons for South Korea's economic growth but in some extend, South Korea's evolving comparative advantage, technology policies and Research and Development expenditure, Educational system and policies and technology Import Policies also participate on developing the country economy in some aspects.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work