Triple whammy hit
March 9th, 2009 by Richard Aucock
CAR makers in the UK have been left reeling by a weekend of bad news, headlined by ‘terrible trouble’.
Business secretary Lord Mandelson made the ‘terrible’ claim about Vauxhall’s future in the UK, during an interview with the BBC.
‘Vauxhall is in terrible trouble because its owners, General Motors, are in danger of becoming insolvent,’ he said.
‘The Government is very focused on it.’
His fears were caused by reports from the US that President Obama is growing increasingly worried over the future of GM and Chrysler.
The two US giants still face bankruptcy, as the US administration weighs up their claims for aid.
This is why General Motors Europe is appealing to European governments for financial aid, too. Without it, the company said at the Geneva Motor Show last week, factories could close.
On Wednesday, Mandelson will attend a crunch industry crisis meeting. The gathering at the Department of Business, Enterprise and Regulatory Reform will look into the details of the Government’s £2.3 billion bailout package.
The car industry will be heavily represented at the meeting.
It comes as Toyota becomes the latest car maker announcing cutbacks – the scale of which will also be announced on Wednesday.
‘We are making every possible effort to secure employment,’ said a spokesperson.
‘But we need to cut costs further.’
The only positive news to emerge in recent days is a possible Chinese bid for Swedish company Volvo.
Giant maker Geely Automotive has started looking into the company’s books, before possibly making a bid to current owners Ford.
Interestingly, Geely also has a part-share in the company making black cabs!
Car Dealer Magazine will keep you fully posted of developments as they happen.