Will talk of a US automotive rescue package be repeated in the UK?
As the "will they, won't they" arguments continue in the US in relation to a multi-billion-dollar rescue package for the automotive industry there are hopes that a similar move could be on the cards in the UK. The UK automotive market has been under serious pressure of late and recently a consortium of sector leaders approached the government with regards to a potential bailout. While initially there were signs of a potential deal, this seemed to evaporate after the introduction of Lord Mandelson to the equation.
Whether a US deal would encourage the UK government to sit back around the table with the automotive industry remains to be seen but the fact remains that unless a serious injection of capital is received in the short term, the future of industry is in serious doubt. There is a difficult quandary for the UK government because if they do nothing and the industry collapses they will be criticised but if they invest yet more taxpayers money the UK consumer will expect something in return.
The next few months could see the UK government firefighting battles on many fronts as the UK economy continues to struggle and we wait for the earlier rescue package to kick in.
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