UK must learn to subsidise local industries (not promoting their losses) just to encourage them. The competition is to fierce .
Because the Thatcherite Tory philosophy was 'let market forces dictate, which basically meant stand by and watch it collapse, as they wouldn't subsidise it. They never factored into their calculations the net effect on the National economy of losing tens of thousands of jobs, both in manufacturing but also in the vast supply chains that fed the plants. There was a net loss to the economy of thousands of jobs, which meant the Govt were directly funding the benefits payments of those lost roles, in addition the economy lost the spending power of the incomes of those who hit the scrap heap. So they weren't prepared to short term fund the industry, but were prepared to long term fund the effect of the lost jobs - absolute ****ing genius.
so you are saying the french germans and italians shovelled money into their car industries to keep them going then? I get the rest of what you are saying but my question is why did french people keep buying french cars and not datsuns and toyotas like we did? or did they? I dunno you see.
so a different way of looking at this thread parents car i remembers please log in to view this image then please log in to view this image then please log in to view this image then please log in to view this image then please log in to view this image both volkswagens last about 10-15 years.
Yes, and still do! The German motor industry accounts for about 15% of their total workforce and the German Govt spends about 1000 Euro per car produced supporting it. As they realise that the 5BN subsidy is more of an investment than a drain. There's the difference in a nutshell. As for why the French buy French, brand and National loyalty plays a massive part. Remember the Buy British campaigns of the 80's? Who would be the largest actual British motor manufacturer in 2015 if we re-ran that campaign today??? Morgan? McClaren? ****ing sad.
yes. thats the first one. toyota corrolla. I was told they had tow at once to see which would start in morning. ford fiesta "festival" which lasted no time then VW jetta which lasted many many many years. I learned to drive in this which means at 12 I blew the head gasket of this car then a golf which rusted out in the floor it lasted that long.
There are heavy duties on foreign vehicles by that method locally produced vehicles are cheaper than imported..
Isnt that bcos they could afford to? The size, population, wealth of the country. And I'm not just talking about the manufacturing...look at how many potential car buyers there are in Germany and France. And that's before you look at exports. The UK domestic market simply couldnt compete. On top of that you look at interest rates back in the 80's and the cost of exporting (on top of the manufacturing cost) made it virtually impossible. In fact it was cheaper to bring in companies like Nissan to build plants in the North East simply bcos they could build their own cars cheaper than we could ours.
No. They're still doing it today, because they don't consider subsidising industry to be an alien concept, as they're sensible enough to have considered the economic reality if that industry died. The cost of the assistance is dwarfed by the overall economic benefit of the industry thriving The UK couldn't compete with cheap foreign imports that were better than what we we're producing ourselves. The interest rates were a direct result of the total economic ****ing mismanagement of the Tories btw, boom and bust sunshine. As for Nissan being able to make cars in the Uk cheaper than we we could, have a think about what you've typed there, lol.
Even if they are doing it today, it's only bcos they have enough marketability to recoup a return. The UK simply cant, nor could they back in the 80's. Whatever the reason for high interest rates, they had an adverse affect on car exports. It was financially more cost effective for Nissan to build their cars over here. They opened one in Durham in the mid 80's I remember. Why? Bcos their parts, manufacturing methods were cheaper. On top of that they could sell over here at a cheaper price than the likes of Ford, Rover, Vauxhall.
Also, does the name above the door matter? Or the owner of the company? If they're employing high numbers to build these cars AND we have a car industry which is successfully selling cars domestically and exporting as much as at any time in its history.
You're talking absolute bobbins lad, go and research the subject and then come back when you've educated yourself