UK car manufacturers deny bail out rumour
The UK car manufacturing sector has been at the forefront of many headlines over the last few months with suggestions that industry leaders have approached the government about a potential financial bailout. These allegations have been refuted over the last seven days with UK car manufacturers confirming they have asked the government for assistance in creating long-term lines of credit. It would appear that the UK banking system has failed the car manufacturing sector and many of the best-known names in the industry are literally on their knees.
Unfortunately, with new car sales at record lows and set to move lower there is serious concern that at least some of the major players in industry will fall over the next 12 months. We've seen more and more companies announcing longer and longer holiday periods with some plants closed until March time. Despite significant price reductions across the board this has failed to inject confidence and demand into the sector as the number of new cars continues to pile up.
Aside from the fact the UK could lose some of the best-known names in the car industry, there are serious potential side-effects to local businesses and local communities. Many of these car plants support a whole network of small businesses in the area and provide direct and indirect employment to thousands of people.
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