Car makers meet Lord Mandelson to discuss a possible rescue package
The senior carmakers in the UK have today held a meeting with Lord Mandelson to discuss the possibility of a rescue package for an industry which has literally fallen to its knees over the last few months. The situation in the industry is getting worse by the day and many car retailers and manufacturers are struggling with cash flow and rising debts.
The situation has now become critical, highlighted by problems in the US industry, and the association of car manufacturers is pleading for government assistance as soon as possible. Whether this assistance actually follows remains to be seen as many believe this would open the door to other industries in the UK which are struggling. Even though the car industry has been through many troubled times over the years this is by far and away the most difficult in the modern era.
There is a serious risk that once the economy starts to pick up again many of the car manufacturers we recognise today will have undergone massive changes and may be unrecognisable from the companies we see before us. Cars for many people are a luxury item and with money as tight as it has ever been they are one of the first casualties of this recession.
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