Toyota Case Study

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  • Created by: luke
  • Created on: 24-11-12 10:29

Why did Toyota 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.

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Why did they choose Burnaston?

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

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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

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What have been the advantages 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

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What have been the disadvantages of the factory?

• 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).

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What’s this thing called the multiplier effect?

• 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

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