Discuss The Factors Affecting The Present Day Location Of The Motor Industry

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Discuss The Factors Affecting The Present Day Location Of The Motor Vehicle Industry The global car industry is made up of many transnational companies that trade throughout the world, often locating head offices in one part of the world and having many manufacturers around the globe. There are many factors that lead to the location of the different manufacturing sites, that all contribute to the overall selling price of the finished product, and the success of the company.

Typically an LEDC would be the first place to look for when choosing a location to manufacture parts or produce cars, because of well-known factors that are found in LEDC's. These are cheap labour, cheap land and a good availability of workers, and these all help to lower the overall production costs.

Most LEDC's have mainly mechanical or industrial skilled future workers, because of the nature of the work that can be done in those countries.

This is a prime location factor, as the company would not have to train up workers and teach them how to use basic machinery, as they would already have the knowledge. For the people to have industrial skills would mean a plentiful workforce, which means the company will never fall short of workers and they will be able to understand how to operate the necessary machinery. As an example, Setubal in Portugal had places for 3000 workers, and the amount of people that had volunteered was around 55,000.

There are downsides though to locating in LEDC's, and these are what mainly push away industry. Being poorer countries they will also have a poor infrastructure, so the road and transport networks will be basic, slow and unreliable. This will mean that it will be harder to move around parts, and will take longer so...



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