Considerations such as market demand, time to market, regulations, supplier and infrastructure issues are essential in choosing new manufacturing locations.
Determining the location for a vehicle production operation is no straightforward matter. While the major pull for a carmaker is usually based on serving a particular sales region, as well as costs relating to labour, taxes and incentives, manufacturers consider many factors, not least those related to supply chain and logistics. These include a potential location’s transport infrastructure, its proximity to tier suppliers, local government incentives and regulations, currency exchange rates, free-trade deals, access to logistics services and the suitability of the local labour pool.
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