7 factors that determine the location of automobile industries in Germany

greyscale photography of car engine

The automobile industry refers to industries that produce motor cars and other gasoline-powered vehicles such as buses, trucks, and motorcycles.

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 industries in the world affecting not only the economy but also the culture of the world

Germany being among the industrialized country in Europe, also produce automobile.

Automobile industries in Germany can be found in areas such as Frankfurt where a brand like Opel is produced and wolf’s 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 the manufacture of cars. most German 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 the Rhine river and coal have accelerated the development of automobiles in Germany. power is needed in steel production and for running different machines in the factories.

Presence of skillful people and experts

Germany has very innovative people capable of designing modern cars. There are many universities and colleges to train experts who will work in the automobile industry.

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 facilitates 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