1. Industrialization and Chevrolet (General Motors)
Industry: Part II
Industrialization
and Chevrolet (General Motors)

2. Major Industrial Regions of the World before and after 1950

3. Industrialization Through WWI
The four primary industrial regions:
1) Western & Central Europe
2) Eastern North America
3) Russia & Ukraine
4) Eastern Asia

4. Western and Central Europe
Late 18th Century:
Britain
France
Belgium
Netherlands
Germany: 3 districts?
Early 20th Century:
Italy: What area?
Spain: What area?
Sweden
Finland

5. Major Manufacturing Regions of North America
-Benefitted from overseas resources
-Large coal and gas reserves to provide energy to manufacturing plants
-US capitalized on industry after Western Europe destruction during WWI and WWII

6. Major Manufacturing Regions of Russia
-Many resources throughout the vast expanse of land
-Volga River provided an energy resource and transportation through canals -

7. Major Manufacturing Regions of East Asia
-Japan imported raw materials from it’s colonial empire into Korea, Taiwan, and China
-3 major belts in Japan?

8. Think of an industrial area where you live, either an industrial park or a major conglomeration of industries. Consider the models of industrial location yesterday and determine whether any of the models apply to this place.

9. How has Industrial Production Changed?
Key Question:
How has Industrial Production Changed?

10. Post-Fordist
Fordist – dominant mode of mass production during the twentieth century, production of consumer goods at a single site.
Post-Fordist – current mode of production with a more flexible set of production practices in which goods are not mass produced. Production is accelerated and dispersed around the globe by multinational companies that shift production, outsourcing it around the world and only producing what is desired by consumers.

11. Planned Obsolescence
What is planned obsolescence?
Who is guilty?

12. Domestic Car Production in a Post-Fordist World
Due to the increasing demand for better, longer-lasting, more eye-catching vehicles, American consumers have fled domestic producers and found their home with foreign-produced cars that are longer-lasting, sleeker and more fun to drive. Popular foreign cars include…Toyota Camry, Toyota Corolla, Honda Accord, Honda Civic, Hyundai Sonata, Honda CRV and Nissan Altima. With Americans choosing foreign automobiles , domestic producers were forced to make better, longer-lasting, more appealing vehicles that offer better gas mileage. Have they succeeded?
What are Americans driving?
Cars All Vehicles
1) Toyota Camry 1) Ford F150
2) Toyota Corolla 2) Chevrolet Silverado
3) Nissan Altima 3) Ram
4) Honda Civic 4) Toyota Camry
5) Honda Accord 5) Toyota Corolla
***Explain why foreign cars dominate the car list while American trucks are still more popular than any and all cars in America.

14. Chevy’s Response
After sales of GM vehicles plummeted and when the U.S Government bailed out the company, GM began developing more fuel efficient cars and trucks in order compete with foreign automakers such as Toyota and Honda.
Chevy’s landmark response…

15. Chevrolet Assembly Plants, 1955
Fig a: In 1955, GM assembled identical Chevrolets at ten final assembly plants located near major population centers.

16. Chevrolet Assembly Plants, 2003
Fig b: In 2003, GM was producing a wider variety of vehicles, and production of various models was spread through the middle of the country.

17. Chevrolet Plant Closures
Plant closures for Chevy in the past seven years…
Pontiac, Michigan
Wilmington, Delaware
Grand Rapids, Michigan
Indianapolis, Indiana
Mansfield, Ohio
If you were the CEO for GM’s Chevrolet division, what recommendations would you make to increase sales?

18. Top Automobile Producers of the World
China
European Union (France, UK, Germany, Italy)
United States
Japan
Germany
South Korea
India
*U.S. auto exports go to…
Mexico and Canada (50%), others include China, Saudi Arabia, S. Korea, Japan
Mercedes Benz and BMW have and will continue to relocate production in the United States to the South. Why?
Ford exports more SUVs than any other vehicle
Fiat/Chrysler exports more Jeeps than any other vehicle

19. Time-Space Compression
Through improvements in transportation and communications technologies, many places in the world are more connected than ever before.

20. Time-Space Compression
Just-in-time delivery (Ex. Toyota’s Kanban Method)
rather than keeping a large inventory of components or products, companies keep just what they need for short-term production and new parts are shipped quickly when needed.
Global division of labor
corporations can draw from labor around the globe for different components of production.

21. New Influences on the Geography of Manufacturing
Transportation on industrial location
Development of infrastructure: containers, refrigeration
Intermodal connections
Regional and global trade agreements
NAFTA, EU
WTO: ~150 countries, promotes free trade to eliminate quotas
Proximity to Energy sources in industrial location less important
Pipelines and tankers deliver fuel to far away places
2.5 million miles of pipelines in NA

22. 2004
 2005
 2006
 2007
 2008
 2009
 2010
 2011
 2012
 2013
 2014
2014
Millions of barrels per day-World’s Leading Oil Producers
Data: US Energy Information Administration - crude oil, lease condensate, natural gas plant liquids, and refinery processing gain
U.S.
12.5
Saudi Arabia
11.6
Russia
10.8
China
4.4
Canada
4.3
UAE
3.5
Iran
3.4
Iraq
3.3
Mexico
2.8
Kuwait

23. Where are the Major Industrial Belts in the World Today and Why?
Key Question:
Where are the Major Industrial Belts in the World Today and Why?

24. Deindustrialization –
a process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and work through a period of high unemployment.
The former Gautier rolling mills of Bethlehem Steel Corp. in Johnstown, PA
Abandoned street in Liverpool, England, where the population has decreased by one-third since deindustrialization

25. Newly Industrialized East Asia South East Asia
Producing small consumer electronics and other small consumer items (toys, tools, etc.)
Also known as the Pacific Rim.

26. Newly Industrialized China – major industrial growth after 1950
1. Industrialization in the 1960s was state-planned:
-Northeast district
-Shanghai and Chang district
2. Today, industrialization is spurred by companies that move production (not the whole company) to
-take advantage of Chinese labor
-special economic zones (SEZs).
ex: Shenzhen

27. As China’s economy continues to grow, old neighborhoods (right) are destroyed to make room for new buildings (below).
Beijing, China

28. Newly Industrialized East and Southeast Asia 1. Four Tigers
South Korea
Hong Kong
Tiawan
Singapore
A map showing the Four Asian Tigers     Hong Kong     South Korea     Singapore     Taiwan

29. Tertiary-Service Industries
Tomorrow…

30. What is the Service Economy, and Where are Services Concentrated?
Key Question:
What is the Service Economy, and Where are Services Concentrated?

31. Service Economy Service Industry – Tertiary
1. Economic activity associated with the provision of services
– such as transportation, banking, retailing, education, and routine office-based jobs.
2. As services become more developed specific divisions are used:
ex: Quaternary – exchange of information…ex?
Quinary – complex decision making…ex?

32. Service Economy Postindustrial:
a society in which an economic transition has occurred from a manufacturing based economy to a service based economy
Examples:
United States, Canada, Japan, and Western Europe

33. Geographical Dimensions of the Service Economy
New Influences on Location:
- Information technologies
- Less tied to energy sources
- Market accessibility is more relevant for some
and less relevant for others because of
telecommunications
- Presence of Multinational Corporations

34. Geographical Dimensions of the Service Economy
Sunbelt: southern region of the US stretching from the southeast to the southwest
- secondary industrial regions moving into Atlanta, Phoenix
- high-tech industry

35. Wal-Mart
Requires producers of goods to locate offices in the Bentonville, Arkansas (Wal-Mart’s headquarters) area in order to negotiate deals with Wal-Mart.
Proctor & Gamble put their office in nearby Fayetteville, Arkansas.
How does the presence of these companies in the region change the region’s economy and its cultural landscape?

36. Nike
Headquartered in Beaverton, Oregon, Nike has never produced a shoe in Oregon. Beginning in the 1960s, Nike contracted with an Asian firm to produce its shoes.
Skopje, Macedonia
The swoosh is ubiquitous, but where is the shoe produced?
Nike has a global network of international manufacturing and sales.

37. Modern Production Outsourcing –
moving individual steps in the production process (of a good or a service) to a supplier, who focuses their production and offers a cost savings.
Offshore –
Outsourced work that is located outside of the country.

38. High-Technology Corridors
An area designated by local or state government to benefit from lower taxes and high-technology infrastructure with the goal of providing high-technology jobs to the local population.
eg. Silicon Valley, California
Technopole – an area planned for high technology where agglomeration built on a synergy among technological companies occurs.
eg. Route 128 corridor in Boston

39. Plano-Richardson, Texas Telecom Corridor is just north of Dallas