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Rescue package for UK car firms
Posted: 14 Dec 2008, 05:31
by Aurora
Times OnLine - 14/12/08
MINISTERS are set to unveil a limited aid package for beleaguered carmakers this week as fears grow over tens of thousands of job losses in the industry.
Lord Mandelson, the business secretary, is expected to make loan guarantees available to the finance arms of car companies in an attempt to kick-start sales. Another option is for low-cost loans to be made from the £400 billion set aside to support the banking industry.
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Posted: 14 Dec 2008, 12:51
by emordnilap
'Misguided' is one of the more flattering words with which I can describe this 'lord'.
Posted: 14 Dec 2008, 15:09
by Ben
At first sight this looks very foolish; not least because we can't afford it. But the UK needs a strong manufacturing base, I can see why the government might not want what little remains decimated. I'd be mildly happier if the US carmakers were going to sell off their European operations, which apparently have at least a chance of turning themselves around.
But who'd get into debt taking out government supported finance to buy a new car now? Better keep the old one going longer or buy a bicycle!
Two more words. "Electric cars".
Posted: 14 Dec 2008, 16:12
by JohnB
Ben wrote:But who'd get into debt taking out government supported finance to buy a new car now? Better keep the old one going longer or buy a bicycle!
Most people who want a new car now, rather than saving up until they can afford it! Government supported savings are probably safer than those that aren't, so wouldn't the same apply to loans?
Posted: 14 Dec 2008, 17:25
by biffvernon
I've just been talking to a bloke who was talking to a bloke who runs a garage. He's giving up trying to sell new cars and concentrating on repairs - that's where he's making the money.
Posted: 15 Dec 2008, 08:57
by DominicJ
But the UK needs a strong manufacturing base
It does, it has one, cars are not a part of it.
The world makes to many cars, it does, we have an overcapacity.
The best way to solve that is for the weakest to go to the wall.
I can see why the government might not want what little remains decimated.
According to the CIA factbook 26% of the UK economy is industrial(more than france), it employs just 18% of the workforce.
That you dont buy anything thats made in the UK is good, not bad, let Italy make fridges and China assemble childrens toys, we build jet engines.
Guess which one has better margins?
Posted: 15 Dec 2008, 10:47
by PS_RalphW
I suspect the market for jet engines is not going to be very good when oil reaches $100 /barrel - err...
Posted: 15 Dec 2008, 11:00
by DominicJ
It'll be better for cars?
How about train/tram brakes?
The UK has several of the worlds leading suppliers.
As I said, somewhere, the UK has £250billion of "industry", which is more than France manages.
Posted: 15 Dec 2008, 12:38
by Ben
RalphW wrote:I suspect the market for jet engines is not going to be very good when oil reaches $100 /barrel - err...
Nuclear power stations then? (Oh, that'll be the French).
Posted: 15 Dec 2008, 14:40
by Aurora
Investment Markets - 15/12/08
Business Secretary Lord Peter Mandelson has revealed that the government is in a position to announce a rescue package for car manufacturers this week in order to avoid even further job losses.
There are two options available in terms of a rescue package, one being to make low cost loans to the industry from the 400 billion pounds that has been put aside to help banks.
Ministers have announced that they will do all in their power to help keep factories running in a period of low demand as industry experts have been calling for a rescue package for the last six weeks.
The Department for Business, Enterprise & Regulatory Reform department has indicated that they are monitoring the industry.
According to the UK Society of Motor Manufacturers and Traders, the British car industry supports over 200,000 manufacturing jobs and over 580,000 workers involved in the process.
The GMB trade union revealed that 25 percent of all car-making jobs could be lost in the economic downturn as the industry is experiencing its worst situation since the three-day week in the 1970’s due to the high price of oil.
Lord Mandelson has had a meeting with the head of Jaguar and Land Rover’s owners Tata, as well as with Vauxhall to discuss the situation they are facing.
Original Article
Posted: 15 Dec 2008, 14:42
by Andy Hunt
It would be a case of good money after bad, if it wasn't a case of bad money after bad.
Posted: 15 Dec 2008, 14:50
by Aurora
Andy Hunt wrote:It would be a case of good money after bad, if it wasn't a case of bad money after bad.
Posted: 15 Dec 2008, 15:24
by Miss Madam
biffvernon wrote:I've just been talking to a bloke who was talking to a bloke who runs a garage. He's giving up trying to sell new cars and concentrating on repairs - that's where he's making the money.
That's really cheered me up (although from a carbon perspective I'm not sure I've thought this through) - wouldn't it be kick ass if we returned to a repair and make do culture rather than our throw away dystopia? more where this came from please.
Posted: 15 Dec 2008, 15:30
by JohnB
Miss Madam wrote:That's really cheered me up (although from a carbon perspective I'm not sure I've thought this through) - wouldn't it be kick ass if we returned to a repair and make do culture rather than our throw away dystopia? more where this came from please.
The trouble is that modern vehicles have hi-tech components that need big business to provide spares. It's not like the good old days when you could fix cars with a spanner and a hammer.
Posted: 15 Dec 2008, 15:56
by Miss Madam
JohnB wrote:Miss Madam wrote:That's really cheered me up (although from a carbon perspective I'm not sure I've thought this through) - wouldn't it be kick ass if we returned to a repair and make do culture rather than our throw away dystopia? more where this came from please.
The trouble is that modern vehicles have hi-tech components that need big business to provide spares. It's not like the good old days when you could fix cars with a spanner and a hammer.
Oh, I could never fix cars with a spanner and a hammer.... do you mean whacking it, swearing, having a hissy fit and stropping off wouldn't do the trick?..Curses... I think I am sensing where I've gone wrong. But yeah deliberate fostering of dependance on 'experts' and designed obsolescence (that has to be spelt wrong) are massive hissy fit triggers of mine.