The building of the toyota car factory


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The building of the toyota car factory

  1. 1. Tile hill wood school & language college Geography department GCSE Case Study Revision Guide UNIT 4 - PEOPLE WORK AND DEVELOPMENT The Building of the Toyota Car Factory at Burnaston Nr Derby In this case study you found that: • Making cars is a secondary industry • Toyota is a transnational corporation • Toyota coming to the UK is an example of foreign investment • Import quotas are put on foreign products coming into the EU • The building of the new factory had a multiplier effect on the area. What is Toyota? • Toyota is a Japanese car manufacturer • Toyota is the largest Japanese car manufacturer • Toyota is the third largest car manufacturer in the world. Ford is the largest and GM the second largest. (as of 2007, Toyota is now the world’s largest car manufacturer) • Toyota have many factories worldwide, they are a transnational corporation. Why did Toyota want to build a factory in one of the 15 EU countries? • The 15 countries in the EU form the largest market for new car sales. (as from 2007 there are now 27 countries in the EU) • Cars are imported into the EU from Japan would have import quotas placed on them, i.e. there would be a limit on how many Toyotas could be sold in the EU. • Toyota (like all car companies) want to increase their worldwide sales. Why did Toyota choose to build their new factory in the UK? • The UK Government made it clear they wanted Toyota to build their new factory in the UK and would give any help it could. • The UK is a large market for new cars and is in the centre of Europe. • Workers in the UK worked longer hours for less pay than workers in some other EU countries and strikes were less common, i.e. higher productivity. • It was also an advantage that English is spoken in the UK. • The Governments of some countries were not as helpful as the UK.
  2. 2. Why did Toyota choose Burnaston for the site of their new factory? Toyota considered 28 possible sites for the factory (including Baginton Airport) but eventually chose Burnaston because: • Burnaston was a large flat site of over 100 hectares • There is room to expand • It is a Greenfield site 8km from the centre of Derby • Burnaston is next to the A38 trunk road and close to the M1. • There is a large pool of unemployed workers wanting jobs • Hundreds of recent job losses at Rolls-Royce and Brell in Derby • Good access to West Midlands car components companies • Derbyshire County Council invested £20 million in the site • Cheap electricity available from local power stations How could the development be described? • Large modern car assembly plant making 200,000 cars a year • First Toyota Carina E was produced in December 1994 • Greenfield site surrounded by landscaped grounds • Pleasant working environment with trees, lawns, lakes etc • Car Parking for workforce and visitors • Large car parking area for new cars • Test-tract area to check new cars • Not like old inner city factories N.B. To describe the development you also need to refer to facts, figures and distances on your sketch map, as well as the first section on this page.
  3. 3. What have been the good effects of the building of the new factory? • Once the factory was built about 3000 jobs were created • A number of the 3000 were previously unemployed • The Toyota jobs are secure because this is a successful company making a good product. The “feelgood” factor is high and the workforce feel they can go out and spend their earnings. • 2,730 jobs were created during the construction phase What’s this thing called the multiplier effect? Simple! The new factory was just the start. It created a lot of other good things for the Derby area that everybody gains from. For example: • More money is being spent in Derby city centre. The number of shops has increased. The same is true of clubs and restaurants. • Public transport has improved with new bus routes including a new rail station at Willington near the factory. • There has been a new M1 – M6 link road • Six of Toyotas suppliers have moved into the area creating 300 new jobs • 4,700 new houses have been built in Derbyshire to cope with many new people moving the area Have there been any bad things as a result of Toyota? Many people would say NO! The development has been a big success, but here are four things: • It’s a Greenfield site, so more countryside has been yet again destroyed. A brownfield site would have been better. • There has been a huge increase in traffic and noise in the area. • Toyota cars are selling really well. However, do increased Toyota sales mean fewer Rover or Ford or Peugeot sales? Do new jobs in Derby mean job losses elsewhere? How might this affect Coventry? • Toyota is a Japanese company. Will UK workers just do the “bolting together” while the top jobs and decisions get made in Japan? (so far the answer is no).
  4. 4. These are some GCSE questions that were in previous exams. All of them could be answered using the Toyota case study. 1. Name either an industrial or office development such as a factory, a business park or an industrial estate. Describe the development and explain why the site was chosen. Name and location: ______________________________ Description of development: (10 lines) Why the site was chosen: (10 lines) 2. For a named area or region where employment opportunities have been created. Name the area or region: _________________________ Describe the employment opportunities created: (10 lines) Explain why the development took place: (10 lines) 3. For any one named country describe the advantages and disadvantages brought to it by transnational companies investing there. Country: ______________________________________ Advantages (12 lines) Disadvantages (6 lines) 4. For a named area where the economy has been helped as a result of foreign investment describe the changes that have taken place and what impact these changes have had. Named area: ___________________________________ Describe the changes in your chosen area (10 lines) Describe the impact of the changes on the economy of the area (10 lines)