If you need urgent support, call 999 or go to your nearest A&E. To contact our Crisis Messenger (open 24/7) text THEMIX to 85258.
Options
Please bail us out, say Jaguar...
BillieTheBot
Posts: 8,721 Bot
This has been in the news the last couple of days. It's claimed that the car industry is going through tumultuous times right now - and they certainly are. The first car company to come to the Government to ask cap in hand for a loan is Jaguar. They make expensive cars that no one currently wants to buy, (though government ministers certainly seem to like them) and is owned by an Indian company.
Now as much as I want to sympathise with anyone who has to go to Lord Mandelsnake for money - he who lied on a mortgage application form, let's not forget - I can't help but want to tell them to fuck off. Jaguar is currently owned by Tata, an Indian company. Today, they've announcecd that they are going to sponsor Ferrari's Grand Prix team. So they've got the money to sponsor a team in a massively expensive sport - but they're also claiming that Jaguar doesn't have any money either. Just how thick do these bastards think we are? Pretty much every argument put forward in favour of this bail-out collapses when put under any scrutiny. Apparently, 16,000 jobs will be lost if the company goes under. Really? 27,000 workers at Woolworths are going to lose their jobs in the next two to three weeks, yet Crash Gordon isn't coming to their rescue. It's claimed that Jaguar are innovators in their field, doing a lot of research and development in the motor industry. And why couldn't a rival manufacturer continue the work?
I'd like to think that Jaguar will be told to get the money from their rich friends in Tata. But they won't when you consider this government's record. Back in April 2005, during a General Election campaign, MG Rover was in the news. Tony Blair, Macavity and the local Labour MP visited trade union offices in Birmingham and said there might be a future for the company. Less than 48 hours later, MG Rover announced they'd received a loan from the Government - almost certainly because local Labour MPs would have suffered if news of job losses were made during an election campaign. And, of course, there is the news today that Dubya has just announced an £11.6billion dollar rescue package for troubled carmakers General Motors and Chrysler. I somehow suspect that the cheque for Jaguar is already in the post...
What do you all reckon?
Now as much as I want to sympathise with anyone who has to go to Lord Mandelsnake for money - he who lied on a mortgage application form, let's not forget - I can't help but want to tell them to fuck off. Jaguar is currently owned by Tata, an Indian company. Today, they've announcecd that they are going to sponsor Ferrari's Grand Prix team. So they've got the money to sponsor a team in a massively expensive sport - but they're also claiming that Jaguar doesn't have any money either. Just how thick do these bastards think we are? Pretty much every argument put forward in favour of this bail-out collapses when put under any scrutiny. Apparently, 16,000 jobs will be lost if the company goes under. Really? 27,000 workers at Woolworths are going to lose their jobs in the next two to three weeks, yet Crash Gordon isn't coming to their rescue. It's claimed that Jaguar are innovators in their field, doing a lot of research and development in the motor industry. And why couldn't a rival manufacturer continue the work?
I'd like to think that Jaguar will be told to get the money from their rich friends in Tata. But they won't when you consider this government's record. Back in April 2005, during a General Election campaign, MG Rover was in the news. Tony Blair, Macavity and the local Labour MP visited trade union offices in Birmingham and said there might be a future for the company. Less than 48 hours later, MG Rover announced they'd received a loan from the Government - almost certainly because local Labour MPs would have suffered if news of job losses were made during an election campaign. And, of course, there is the news today that Dubya has just announced an £11.6billion dollar rescue package for troubled carmakers General Motors and Chrysler. I somehow suspect that the cheque for Jaguar is already in the post...
What do you all reckon?
Beep boop. I'm a bot.
0
Comments
Renault has been getting public money for years.. Britain won't have any industry left if the free marketers get their way... And wasn't it their kind of thinking that got us into this mess in the first place?
To be fair, there are very few companies I think should be bailed out with taxpayers money- regardless of the job losses.
if you can't compete you just go under. The world's got too many car manufacturers, better that we stick to what we're good at (which obviously isn't making cars).
But to answer Dis's point - no, we won't loose our manufacturing industry, we'll just move to a more efficient one based on high tech, rather than the old heavy industry. If the state protectioners had their way we wouldn't have repealed the Corn Laws.
The one thing I would say is that it's very easy to say that Land Rover and Jaguar are obviously not good enough to compete in a free market. But how is it a free market any more? How can we say that Jaguar by itself versus General Motors plus the US taxpayer in any way represents fair competition? If every other country is going to adopt protectionist policies to safeguard their motoring industry, then how is the UK government doing differently going to result in the companies that really deserve to survive based on the quality of their products and sustainability of their business model, being the ones that are left?
Well the not good at making cars is based on our long term performance, though I'd agree we do have some specialist niches (which will then survive). But... there are too many cars being made for the market and it's going to get worse (recession or not) as China and India enter the market cheaply.
If other countries want to protect particular industries it's their choice. Protectionism doesn't actually help you provide a better quality product or look for cheaper ways to produce it, so whilst in the short term it might help you shift cars, in the long term you're going to find yourself left behind (and need more protection).
Rather than protectionism the Government would be better putting its money into skills or cutting corporation tax, better that we have lots of people who can design quality, fuel efficient engines than lots of less well paid people making them inefficiently.
exactly.
Businesses go under all the time. Some sooner than others. I think woolies and jaguar have had a good run for their money
Jaguar/Land Rover are not the same as Rover (or GM/Ford now in America). Jaguar/Land Rover are modern and efficient...
Obviously not enough. But if they're that good let the private sector pay - if you're right they'll make lots of money
:thumb:
http://upload.wikimedia.org/wikipedia/commons/archive/c/c5/20070603190124!Jag_xf.jpg