Burnaston Vs Valenciennes, battle of the car plants. :: Economics

Burnaston Vs Valenciennes, appointment of the car plants.Bosses at Toyota tonight face a difficult finale tonight at where tolocate their new manufacturing plant. The options they ease up are eachBurnaston in Derby where they let a well-established plant along with pose pruneers or the town of Valencieennes in northern France.Here at the financial Times we founder had a debate about which one theyshould go for.Burnaston There are many returnss of them expanding on this site.They have a well-established work force with skilled labourers and alot of room for expansion. They produce a total of 200 000 cars a yearwhich provide 5% of the U.K with Toyota cars. unluckily they will pay off no government funding for the extra project, as Derby has ahigh level of employment. Also it is unlikely to fig out the sales ofToyota cars in the U.K so they will be paying a lot out in expatriationation costs over to the EU. They have the benefit ofexperience on their side and the fact they wo uld only be paying 10%tax for each employee where as in France it is 45% tax a considerable sum up more and they wages would be higher.Valenciennes The advantages of basing they new factory here aregreater than in Derby. They would receive 10% of the total factoryprice from the government along with waiving close to of the employmenttaxes for a fixed period of time and would provide training grants forworkers, as Valenciennes is a town of high employment levels unlikeBurnaston. They would have a new Green field site but would have noutilities so would have to lay them on. They would be close by tomotorways and rail links to the rest of Europe and the channel tunnelwhere they would transport engines from Derby. The idea of opening aplant in France is to raise the amount of Toyotas in France from 1.1%to 5% of a few years as it would be easier to transport them aroundFrance. They would also hope to transport them around the continent,as they would be near to major European countries such as Germany,Belgium, Spain and Italy. This is an advantage on Burnaston, as itwould cost more to transport to the other EU countries from there.We think that Toyota should build the new base in France for a mixed bagof reasons. They would receive more government funding for building inFrance as they have high levels of unemployment so a large corporationwould be welcomed. They would also receive grants for training, as the