• 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...


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.


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.


* 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. Case Study: The Home Depot

    If Home Depot continues with the smaller stores the stable market will not be that stable anymore. Considering the fact that Home Depot has among others a lot of experience and financial resources, we are convinced that Home Depot can handle the competition on the market.

  2. Chinese car market overview. Citroen case study

    Agriculture and industry have posted major gains especially in coastal areas near Hong Kong and opposite Taiwan and in Shanghai, where foreign investment has helped spur output of both domestic and export goods. The leadership, however, often has experienced - as a result of its hybrid system - the worst results of socialism (bureaucracy and lassitude)

  1. This report will establish the opportunities and threats presented to Sony by the EU ...

    Countries like Greece, Portugal, Southern Italy and Spain are more loyal to certain brands because they have fewer choices in what brands are sold in their country. Also when they are smaller amount of choices it means product are priced high because there are less demand for the latest products.

  2. The structure of the airline industry.

    Southwest, like AirTran, plans to purchase more planes for their fleet. In addition they are planning to hire as many as 4,000 more workers. Southwest has been very successful with marketing tickets online. Approximately 50% of their sales happen via the internet.

  1. "ASI" LTD case study.

    With the beginning of the private initiative a lot of small family hotels as well as small resort-villages on the Black Sea coast as well as in the mountains has been build. The construction investments in the tourist industry are going on and will go on in the future years."

  2. Important demographics of Brazil.

    10%, steel 9% Export partners = USA 23%, Europe 21%, Argentina 11%, Japan 5%, Imports = $55.8 billion - machinery, oil, chemical products, electricity Import partners = USA 24%, Middle East 20%, Europe 10% Measures of Development The Human Development Index (HDI) used by the United Nations Development Program (UNDP)

  1. Liberalization: where it has lead us and where it is headed

    Each of them established authoritarian governments that tortured, murdered and brutalized huge numbers of their own people. Nothing of the sort happened in India. The quality of the human resources of India is well illustrated by one startling fact: according to a recent survey, Indians who have emigrated to the

  2. The airline industry

    when he said that the outbreak of war in the Middle East would literally mean the difference between making a substantial profit or recording a loss (BA News Release, 2003). SECTION 2:British Airway's Strategic Choices and Methods of Implementation 2.1 British Airways as a major organisational player British Airways was

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