The Big Three

It looks as though the US may get more like the UK in one aspect; the loss of domestic car manufacturers. Large numbers of cars are made in the UK, but they are nearly all from foreign owned companies. Even such British sounding companies as Jauguar and Rolls Royce are owned by the Germans and Indians. Rover, the last British mass market manufacturer ceased to be a few years ago.

The Detroit three, Ford, GM, and Chrysler, are looking for assistance from the US Government to help them get through the next twelve months. It is ironic that after years of lobbying to prevent Congress passing legislation that would have required them to improve fuel efficiency standards, they are at the edge of financial ruin because people prefer to buy Japanese cars with better fuel economy. It is now looking unlikely that this Congress will provide the aid that they need. Senate Republicans presumably wish to make the economy even worse for the incoming Democratic administration. Bush is looking to find other ways of getting funds to the companies. I cannot see how in even the medium term, all three will still exist as independent concerns.

US Car ManufacturersUS Car Manufacturers

Published in: on 12 December, 2008 at 7:13  Comments (1)  

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One CommentLeave a comment

  1. I love that ‘ad’ – brilliant!

    It’s a terrible situation. So many people will be out of jobs if even one of the manufacturers fails, and many smaller businesses affected as well. But then again, do we take that hit now, suffer with the higher unemployment, malcontented people, then move on and revamp our manufacturing sector, or do we suffer later with higher unemployment, malcontented people, then move on and revamp our manufacturing sector?

    At first I was compelled to think that we are forced to bail out the companies. But the extreme arrogance of not only those companies but the representatives of the workforce unions is very telling: neither are interested in compromise, restructuring, nor improving the quality of the product. Without the commitment from both employers and workforce, there is no hope whatsoever.

    The real tragedy is that there are so many small businesses serving these car makers which will be devastated by the loss.

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