7 factors that determine the location of automobile industries in Germany

Automobile industry refers to industries that produce motor cars and other gasoline powered vehicles such as buses, trucks and motor cycles.In other words the automotive industry is a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles. The automobile is one of the largest industry in the world affecting not only the economy but also the culture of the world

Germany being among industrialized country in Europe, also produce automobile. Auto mobile industries in Germany can be found in areas such as Frankfurt where brand like Opel is produced and wolfs burg where Volkswagen is manufactured

The location of the automobile industries in different places in Germany is determined by the following factors:

  • Availability of raw materials; such raw materials include iron which is important in manufacture of cars. most Germany cities are located in areas in which iron is mined. 

  • Capital availability; automobile industries demand huge capital in order to establish and to run them. The local capitalist have enough capital to finance the establishment and running of these industries
  • Power availability; HEP from Rhine river and coal have accelerated the development of automobile in Germany. power is needed in steel production and for running different machines in the factories.
  • Presence of skillful people and experts; Germany have very innovative people capable of designing modern cars. There are many universities and colleges to train experts who will work in automobile industries.

  • High technological advancement; Germany has very advanced technology in the world. through this technology, she is capable of making modern cars which are highly demanded in the world market.
  • Effective and efficient water transport and communication network; this facilitate easy transportation of raw materials to production sites and finished goods from production sites to market.
  • Close and effective government support
  • Accessibility to internal and external market