The bailout of the Detroit Three automakers by the U.S. government has dominated headlines for the past month or so, leaving little room for similar stories from other regions of the world. But now that the Big Three have secured enough financing to see them through March, auto bailouts in other parts of the world are starting to grab headlines.
According to CNBC, British automakers – led by now Tata-owned Jaguar Land Rover — are stepping up their demands for government funds. As witnessed here in the U.S., UK car demand fell by 30 percent in November, leaving Britain’s car industry in a difficult financial situation.
“The UK motor industry is facing unprecedented challenges and urgent action is now required,” said the Society of Motor Manufacturers and Traders’ chief executive, Paul Everitt. “Without swift action and the ability to access credit and finance, significant damage will be done to the nation’s industrial capability, leaving the UK poorly equipped to take advantage of any global growth when it returns.”
New car sales in the UK are down 2.7 percent this year, and are likely a preview of things to come.
No amount of money has been attached to the possible bailout as of yet, but the British government warns that it does not “have an open checkbookâ€. But with the auto industry employing more than 850,000 workers and generating more than $75 billion a year, it seems as though the British government will have to step in with some form of an aid package.
