My word, another surprise!

The latest figures produced by the Society of Motor Manufacturers and Traders showed that there is no end in sight to the gloom that has engulfed the industry since last Autumn.

Months of lay-offs, factory shutdowns and shift cuts have led to a 59 per cent fall in February compared to the same time last year.

So, we\’ve got the head of the car makers organisation showing us how terrible things are while he\’s arguing for the taxpayers to bail his members out.

Surprise!

However, we\’re not told the details….part of which is that several of the largest manufacturers have simply idled their factories. The workforce is still getting paid, the resources, installations, human capital are all being preserved. Things are already being managed without that bailout.

Somewhat lessens the argument for the bailout, doesn\’t it?

 

3 comments on “My word, another surprise!

  1. So lets see- people are making their old cars go an extra year or so to save themselves money. To give these companies money the government has to take it from the people. The people have then even more reason to save mony- so they either drop out of car ownership, or keep their old cars even longer. In the end people are paying through their taxes to maintain a car manufacturing class in idleness, as they can’t afford the extra needed to actually buy a car.
    Sounds like a plan!

  2. Don’t act so glib about this, Tim. When we had economic boom, car production capacity exceeded demand and the manufacturers did not reduce production capacity. In recession, production capacity far exceeds demand, and few manufacturers have enough money in the bank to mothball factories and workers until the up turn.

    Consequently, lots of car companies will die (which is a necessity), but a human response is required for the unemployed workers.

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