UK Car Industry?

[dwilkie]

http://news.bbc.co.uk/1/hi/uk_politics/7853149.stm

Am I right in thinking that the companies which require these bailouts/loans/whatever are all foreign owned now, even if they have a manufacturing base in the UK? And if so, can I ask why they are being bailed out by us and not by their own country? Is it a job safeguard thing, or is it a worry about the impact it would have on the economy if these companies suddenly pulled out of the UK?

Sorry I'm not especially Au Fait with the situation as regards "UK Car Makers". The way I see it though, that's pretty much Ginetta, Noble, Morgan, and Marlin isn't it?

[Mattygooner]

Didn't know we had one.

[Mc Lovin]

We dont as such, however, if honda, bmw/mini and co shut up shop there would be alot of people on the dole...

Edited by Mc Lovin on Tuesday 27th January 15:15

[shirt]

personally just see them as 'trying it on' as it were, using political leverage and threats of closure to their advantage. there's little difference between the car manufacturers and other large industrials [we have experienced 40% drop in demand and 50% drop in prices in the last 6mths], just that the car makers have better lobbyists.

[dwilkie]

No that's a fair point, I can see it would put many jobs at risk. It just stings a bit that we're having to use UK money (at a tough time) to bail out foreign companies, it sucks

[chunkymonkey71]

I'll help Honda out. I'll give em a few quid for a Civic Type R...

Can't say fairer than that! I mean, the credit crunch is biting us all...

[Digga]

There was talk over the weekend about rules which prevent aid from being syphoned out of the UK to the parent company. So if for example, Toyota got some wedge to save jobs at their Derby plant, the cash couldn't suddenly find it's way to Japan.

Not quite sure how they'd 'ringfence' the money in practice though.

[Podie]

dwilkie said:

http://news.bbc.co.uk/1/hi/uk_politics/7853149.stm

Am I right in thinking that the companies which require these bailouts/loans/whatever are all foreign owned now, even if they have a manufacturing base in the UK? And if so, can I ask why they are being bailed out by us and not by their own country? Is it a job safeguard thing, or is it a worry about the impact it would have on the economy if these companies suddenly pulled out of the UK?

Sorry I'm not especially Au Fait with the situation as regards "UK Car Makers". The way I see it though, that's pretty much Ginetta, Noble, Morgan, and Marlin isn't it?

The arguement is that without the car industry (whether foreign owned or not) was to go from these shores, many smaller businesses that supply components would go under. This is what JLR are banking on.

From a manufacturing perspective, anythig built in the UK is classed as the UK car industry, so Honda in Swindon, Nissan in Sunderland etc etc

[shirt]

as long as they pay it back then i have no problem with it. its not as if there were mass protests when these foreign companies were investing money in the uk & providing jobs.

still a ste state of affairs but the roots of all this were laid years ago.

[vxr8mate]

chunkymonkey71 said:

I'll help Honda out. I'll give em a few quid for a Civic Type R...

Can't say fairer than that! I mean, the credit crunch is biting us all...

Just had a conversation with a person looking to buy a Land Rover (of sorts). When he enquired at the show room "what deals are you offering on new vehicles" he was told "no deals at the moment, we are bucking the trend. Come back next January!"

No doubt "bucking the trend" means expecting to be bailed out by the British tax payer.

[audidoody]

So, after telling us for five years not to buy cars and to use public transport, the Govt is now bailing out a car industry whose products the Govt will still discourage us from using.

Just so I'm clear on this.

Edited by audidoody on Tuesday 27th January 15:45

[dwilkie]

Yeah, this all makes sense I guess. I suppose my worries were the companies would just take the money and run, and it'd STILL result in UK closures.

I did find out watching something or other on Dave the other day that something like 90% of the cars involved in motorsport are designed and built in Britain, though I think the program was old as Richard Burns looked about 12 and it was featuring the Evo IV. (70% of that is British apparently, it's only the engine and gearbox that are shipped over from Japan).

[Podie]

audidoody said:

So, after telling us for five years not to buy cars and to use public transport, the Govt is now bailing out a car industry whose products the Govt will still discourage us from using.

Just so I'm clear on this.

Yep, got it in one.

Don't buy gas guzzlers or 4x4s... and we'll tax you to the hilt if you do.

Oh wait, have a loan...

And people wonder why UK manufacturing is fked...

[MK4 Slowride]

Clarkson's motorwold with a young JC as well.

[JagLover]

dwilkie said:

http://news.bbc.co.uk/1/hi/uk_politics/7853149.stm

Am I right in thinking that the companies which require these bailouts/loans/whatever are all foreign owned now, even if they have a manufacturing base in the UK? And if so, can I ask why they are being bailed out by us and not by their own country? Is it a job safeguard thing, or is it a worry about the impact it would have on the economy if these companies suddenly pulled out of the UK?

Sorry I'm not especially Au Fait with the situation as regards "UK Car Makers". The way I see it though, that's pretty much Ginetta, Noble, Morgan, and Marlin isn't it?

Ownership is rather irrelevant IMO.

What matters more is where the cars are designed. Despite it's indian ownership Jaguar/Land Rover still has its R&D in this country.

[Podie]

JagLover said:

What matters more is where the cars are designed. Despite it's indian ownership Jaguar/Land Rover still has its R&D in this country.

Which is paid by the parent company - location is irrelevant.

[dwilkie]

MK4 Slowride said:

Clarkson's motorwold with a young JC as well.

That was it! I didn't see the whole thing but it was quite good. Clarksons perm though...

Jag Lover said:

Ownership is rather irrelevant IMO.

What matters more is where the cars are designed. Despite it's indian ownership Jaguar/Land Rover still has its R&D in this country.

Yeah, you're right I guess

[RichardD]

JagLover said:

...Ownership is rather irrelevant IMO.

What matters more is where the cars are designed. Despite it's indian ownership Jaguar/Land Rover still has its R&D in this country.

France takes action. Sales of cars made in France increase.

Germany takes action (2500 EUR for writing off a car over 9 years old!), sales in Germany of cars made in Germany increase.

So the question is with whatever UK action is taking place, will foreign workers benefit (when it should only be UK workers that UK money should be helping)....?

[shirt]

multinationals that have aquired car companies - such as tata - will run them as seperate entities from their home operations. any money given to jlr will thus remain there, as the legalities of passing it back to india are obvious. plus who said their home operations need cash? their margins are much higher than over here and their economy isn;t in such dire straits as ours.

unsure about the likes of honda but i'd still bet honda uk and honda jp are 2 different things.

[Roo.]

The car industry in the UK employs a lot of people that would otherwise be costing the Government money in benefits.

A few facts for interest quoted from am-online.

• 27 car and CV manufacturers operating in the UK
• 1.75m cars and commercial vehicles produced each year
• £51bn turnover
• £9.5 billion value added
• Over 800,000 UK jobs
• UK automotive manufacturing supplies over 100 markets worldwide offering some resilience to the UK issues