Toyota - Case Study

Car manufacturers in Burnaston, Derby

Toyota - Case Study

Example of:

  • A trans-national company in an MEDC (UK)
  • Investment from overseas in an MEDC
  • Location of a named factory
  • Location of a secondary economic activity

Toyota is the world's third largest manufacturer of cars. As a TNC it has its head office in Japan, and component factories, assembly plants and selling outlets throughout the world. The company decided to open a vehicle manufacturing plant in Europe as Europe is the world's largest market for cars.

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Reasons why Toyota chose to locate in the UK rathe

Reasons why Toyota chose to locate in the UK rather than another country in Europe:

  • There is a large market for cars in the UK
  • Vehicles have been manufactured in the UK for a long time
  • Car components are already made by many firms
  • Good communications with the rest of Europe
  • Support from the Government at national and local levels
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Why did they choose to open a car plant at Burnast

Why did they choose to open a car plant at Burnaston, Derby?

  • Room for expansion on a greenfield site 8km from the centre of Derby
  • Large expanse of flat land available, over 100 hectares
  • Central position in UK for the home market
  • Lots of unemployed skilled workers living nearby, recent job losses at Rolls Royce in Derby
  • Many car component firms located near by in the West Midlands
  • Good road access, needed for the 'just-in-time' policy
  • Near to national rail network
  • Support from the Government available
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Benefits to the area and the UK

Benefits to the area and the UK

  • More jobs created (multiplier effect on that)
  • Many parts supplied from the UK- 220 suppliers from European countries
  • Improved transport - new rail station at nearby Wellington, new M1
  • More people are attracted to the area (multiplier effect - house prices rise)
  • 4700 new houses built
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Problems to the area and the UK


  • More people - more traffic - higher risk of accidents - increased air and noise pollution
  • More demand for local services - lack of space in schools - more demand for health services
  • More houses built - more habitats destroyed
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this doesnt not wokr for me

Mr A Gibson


There is enough detail here about the case study of Toyota to get you to level 3 in a longer question.

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