Is the UK car manufacturing industry on the brink of collapse?
Amid claims that one of the U.K.'s largest car manufacturing plants is on the verge of collapse, the Unite union has today stepped in to try and pressurise the UK government into forwarding a life-saving rescue package. While the union has refused to name the plant at risk it has confirmed that upwards of 6000 jobs are potentially at risk. This is a direct consequence of the collapse in the UK car market where sales have literally fallen off a cliff. So what can the government do?
Whether this is a very cunning ploy to force the UK government's hand or a real crisis in the UK car manufacturing industry remains to be seen but the government had promised some weeks ago that money would be forthcoming to help the industry. It appears that despite the various headlines and promises from various government ministers, there has been little in the way of actual capital and loans made available to the industry which has exacerbated the problem somewhat.
The UK government is now in a very tricky position as they have backed the UK financial sector to the hilt and if they turn their back on the UK car manufacturing industry there could be literally tens of thousands of jobs at risk. Has the Unite union played an excellent poker hand?
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