Graham S1

Shouldn't they be concentrating on shifting those fields of cars that seem to be everywhere these days? Surely they have made too many cars, and that is why they need "credit" to keep producing more?

Why don't they drop thousands off the price of the "fields of cars" to restore some of their balance sheets?



The bank bailouts don't seem to be working (hence why they're having to do ANOTHER one), so what convinces us that this is going to work. Are we simply propping up jobs, at a larger cost to us later?

Kamike

Though it was more about securing peoples jobs but I could be wrong

Chris69

Its more about securing jobs mate, there are 800,000 people in the uk in the car industry and that probably rises to over a million once you take into account suppliers and related businesses
the government is just trying to help the economy by propping up a major contributing industry imo

Kamike

I have just read that alot of the cars laid up are going to be sold over the channel due to the exchange rate

RichieST

iTrader: (2)

Thats right. At honda near me they are bringing in the civics that have been sat in fields for months, ripping them to bits and changing them to LHD to go abroad

Aaroncast

absolutly right in what you say-------------------
also if your layed off will you want another car!!

Kamike

Like with bike sales, there was a pretty busy market for grey imports in the UK until it became cheaper for people in Europe to by them from the UK and import them to France etc

focusv8

You'd destabilise the whole second hand car market if you did that.
New cars from the fields would be cheaper than the nearly new cars on forecourts.
The nearly new wouldn't sell and they'd end up in the field instead.

The fields of cars will empty over the next few months as most makers have stopped or reduced production.

Production will restart and be matched to the demand.

They only need propping up to cover the next few months whilst the situation sorts itself out.

.

zedtechs

My opinion is they are just avoiding the inevitable, and a major player in the automotive industry will go under eventually

dojj

iTrader: (3)

but if you can't actually afford to buy a new car, it's a pointless excersie is it not?

"here you go, have £2.3 billion to kee you going"

why should the government help bail out business when you know for a fact that if it's you or me going to them they are going to say "you need to sign on for 6 weeks before we can give you £23 a week to live on"

costina

iTrader: (1)

Impossible Task all the upper and lower dash assy is different would be cheaper to scrap them than do that

If you sell cars really cheap the second hand market will drop too,so your trade in will be worth nothing so then people will not buy a new car

BTW i've 4 months off

Paul

focusv8

The bailout is repayable, whether to banks or car producers.
Payments to the likes of you and me are for keeps.

.

Graham S1

Surely dropping the second hand market a bit, is a small price to pay, rather than people loosing jobs and houses?

If people don't have the money to buy new cars, then what are these people on the line going to do for their "sustained jobs"?

RichieST

iTrader: (2)

Thats what my next door neighbour said, and he's a supervisor at Honda, so I dunno....

dojj

iTrader: (3)

but it's ok for the likes of northern rock to pay some of their employees 10% salary bonus' is it?

costina

iTrader: (1)

lol i work for the weld dept pm me his name i could do with a giggle

Paul

costina

iTrader: (1)

Thats not good imo if the employees are getting 10% what the hell are the bosses getting this is why they got into the shit in the first place

As for the bail out the companies will have to pay it back at a big rate of interest(IF THEY CAN!) can you see GM in the US paying all that money back?

So the US are still lending to failing companys Good move that one

Paul