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Car Industry 'rescue package'
- Thread starter antijoke
- Start date
Because it keeps people in jobs, manufacturing gets us out of this mess, you want to keep as many businesses going as possible. It's not just the car plant workers, it's all the jobs that go to making the parts for that car and the metals that make the parts, the people who refine the ore etc etc.
The car industry is a good example of a massive "concealed" workforce. For every person in a factory actually bolting/welding (or hammering in the case of the late Rover) a car together for honda/jaguar/land rover/ford etc., there are 5-10 in small firms supplying them specialist and bespoke parts.
That assumes though that the car manufacturer will receive an acceptable level of orders after they've been bailed out.
IMO these bail outs just aren't going to make the companies last long enough. A few months... then they'll need another bail out.
Soldato
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Again, a case of the cost of the bailout being considerably less than the impact and cost of it all going ****-up.
re
i worked at land rover /jaguar for 15 years,i just taken my VR,as i believe there will be some big changes in those 2 companies..TATA the owner is not allowed to do anything to those companies untill 2011...which was signed in by the unions 2 years ago..when 2011 comes TATA can do what he wants(move it all to india or wherever there is cheaper labour)i dont understand why the government is doing it as he will take it abroad after 2011....i dont think the car industry is finished here...i just think if they do keep it here they will half the work force and build in very small quantitys as nobody is buying them...and i dont see anybody going to buy them in the shorterm....
i worked at land rover /jaguar for 15 years,i just taken my VR,as i believe there will be some big changes in those 2 companies..TATA the owner is not allowed to do anything to those companies untill 2011...which was signed in by the unions 2 years ago..when 2011 comes TATA can do what he wants(move it all to india or wherever there is cheaper labour)i dont understand why the government is doing it as he will take it abroad after 2011....i dont think the car industry is finished here...i just think if they do keep it here they will half the work force and build in very small quantitys as nobody is buying them...and i dont see anybody going to buy them in the shorterm....
Associate
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Because by then the general election will be over. In the meantime this helps keep car workers on-side.
M
I also think it's a disgrace that Tata isn't put more money in to Land rover / Jaguar to get them through this tough time. Instead they leave it to the government.
The same thing is happening with Corus now as they are crying out for government money as well.
I know Tata has to make profits but they should invest money in to these companies now to help them through instead of leaving it to the tax payer.
Why invest money when you know the government will cough it up anyway
From : http://www.ft.com/cms/s/0/238707a2-ec67-11dd-a534-0000779fd2ac.html?nclick_check=1
Peter Mandelson, business secretary, has unveiled a package of measures to help Britain’s embattled car industry, by offering financial support for the development of low carbon vehicles with new loan guarantees.
The announcement outlined a new guarantee scheme to back £1.3bn of loans from the European Investment Bank, with another £1bn of loans that would not be eligible for such funding.
This is providing help for training and retooling just like the US' $25bn Loan for car manufacturers to retool and develop fuel efficient vehicles.
Don't forget the banks are tightening their credit, this isnt the manufacturing industry's fault. Suppliers are demanding COD. Some are not getting insured.
How fair is it that the US support their manufacturers and the UK doesn't? What does it say about the UK if these guarantees and loans weren't passed? That the UK isnt capable of doing something helping their manufacturing industry? France is doing the same, Germany is doing the same, Sweden is doing the same. They have given their carmakers an advantage. The UK needs to aswell.
As a major motor manufacturing base it would be absurd to let our companies and suppliers go down the pan.
Peter Mandelson, business secretary, has unveiled a package of measures to help Britain’s embattled car industry, by offering financial support for the development of low carbon vehicles with new loan guarantees.
The announcement outlined a new guarantee scheme to back £1.3bn of loans from the European Investment Bank, with another £1bn of loans that would not be eligible for such funding.
This is providing help for training and retooling just like the US' $25bn Loan for car manufacturers to retool and develop fuel efficient vehicles.
Don't forget the banks are tightening their credit, this isnt the manufacturing industry's fault. Suppliers are demanding COD. Some are not getting insured.
How fair is it that the US support their manufacturers and the UK doesn't? What does it say about the UK if these guarantees and loans weren't passed? That the UK isnt capable of doing something helping their manufacturing industry? France is doing the same, Germany is doing the same, Sweden is doing the same. They have given their carmakers an advantage. The UK needs to aswell.
As a major motor manufacturing base it would be absurd to let our companies and suppliers go down the pan.
All this isnt just for Jaguar/Land Rover. Its for suppliers, other manufacturing plants (nissan, honda, ford etc).
This is why the government has to tread very carefully with it's bailouts. If companies start getting bailouts left right and centre then the treasury's cupboards will be bare. (Well even more bare than now
)I'm not against bailouts, I just don't want a situation where companies see it as an easy option and start threatening jobs just to bring the money in.
lending to the people is what caused this problem. People didnt have the money got loans and brought things they couldnt afford.
(edited because it made no sense)
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No that was lending to the "sub prime" market, right now banks wont even lend to people that can afford it, which is resulting in people not spending money, companies firing people, hence people being scared for their jobs and not spending money ... and the cycle continues.
Soldato
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So Tata get their money. They're getting more through Corus steel too.