Italy,UK,Malaysia and Germany wanted the Holden car company to have factory on their land. Each countries made the offer. Germany said in their land there are many skilled workers and will let the Holden company no rent for 1 year. UK said their country is well developed so it would be easy to export to Europe, have large population, no rent for 2 years and reduce taxes. Italy said they will let company have no rent for 1 year, lots of land to build factory and lot of skilled workers. Malaysia said they have cheap labour, 15 years free rent and government will take 30% of profit if the Holden make more money then the rent.

Holden decide to have their factory in UK. To my opinion i think holden should build factory in Malaysia because in Europe it will be hard to survive because of huge conpanies such as BMW, Benz, Ferrari and etc. However in Malaysia people have low income so they can not afford to buy cars produced from BMW

Last week we learned about car industries. I thought it would be similar with fashion industries but it was not. Top 4 important location factors for the right sites of factories. 1) Labor force. No components mean no cars. Because we need components to make cars. So I think Labor force is the top important location factor. 2) Location Factor Also we need workers to make products if there are no workers who will do things which machines can not do? Who will fix the broken machines? Who will transport the products to the markets? Who will help the mangers? 3) Labor force, Site If there is no electricity our lives will be more difficult. And in the factories machines will not work. So we should choose carefully for the site of our factories. THe sites need to produce enough electricity for machines. 4) Transport, Market There need to be good road and rail to the markets. The mangers would not like if their transportation fee cost more than their incomes so we need to choose place where there are good roads and rail.