Fiat in Betim - Location and Examples of Industry
LOCATION & EXAMPLES OF INDUSTRY
South East Brazil is the economic core region of Brazil. It economic well being and quality of life are higher than all other parts of the country.
The Fiat factory is located near the major cities of Sao Paulo and Rio de Janeiro
Near the coast for shipping links and material imports
Originally opened in Betim in 1976 and employed over 10,000 workers and produced over 130,000 cars a year.
Betim is part of the industrial belt of Belo Horizonte, the capital of Minas Gerais, a prosperous state in South-East Brazil
Most of the Worlds large makers are based there – Ford, GM, Toyota, VW and Fiat.
Other industries include textiles, furniture, clothing and shoemaking.
Fiat in Betim - Why have they located here
WHY HAVE THEY LOCATED HERE
- It has a high population density to provide a large workforce,72.4 million ppl.(Having its population in reliable jobs means that Brazil will prosper as more people will be paying taxes and will have disposable income to spend in Brazil's shops and services. )
- Nearby consumer market to sell products to in cities (Cars made in Brazil were affordable for Brazilians because Fiat's operating costs were lower so they could charge less. The cars were cheaper as there were less transport costs, cheaper labour, and the cars were smaller.)
- It has many raw materials located in the region
The region is the focus of the country's road and rail networks (Factory next to 381)
- Workers won't strike (Brazilian people will not strike because of their strong work ethic, which is fuelled by the knowledge that if they do not work hard enough, there are unemployed people who would take their jobs.)
- It contains the main airports and seaports
- It has a significant pipeline for oil and gas
- Nearby universities for more skilled workers (Belo Horizonte university)
Fiat in Betim - How has this been benficial and Wh
HOW HAS THIS BEEN BENEFICIAL AND WHY HAS FIAT EXPANDED IN BRAZIL
Many other MNCs have followed
Lots of job opportunities for locals, causing a rise in income for its people
More tax for government to spend on health, education and infrustructure
Improvements to the environment
More transport links (airports, roads, railways) built
Minas Gerais gave Fiat $135 million towards building their new factory – over half the construction cost. Fiat believes that there will be an increase in demand for these vehicle
Incentives were offered by Minas Gerais to get Fiat to locate there. Other regions and countries wanted Fiat so it was about who could offer the best deals in Brazil in the next few years