Recession in British Car Industry Case Study Example | Topics and Well Written Essays - 3000 words

Recession in British Car Industry - Case Study Example "He also said that we need to argue against this to avoid an irremediable loss of capacity, skills and technology." (Abbiss,2007). Critics within the car industry point out rescue package that jobs provided by stake are not up to the standard. Another reason of British car industry recession is those workers who work for dealerships either selling or servicing cars instead of manufacturing them. Due to recession not only industrial relations environment that has changed but the cars are also getting better day by day. In the past cars like Morris Marina Ital and the ghastly Austin Allegro were the horrible and shocking cars in terms of design and construction. There was a time when car industry had 40 percent of British car market that include car, truck and commercial vehicles manufacturers. The group had a confused but prominent range like Jaguar, Rover and Land Rover and best selling Mini, these models were slow to develop so that they can compete with the international car market. Before the global economy recession British cars were exported in huge numbers. Few British car manufacturers are now ready to claim that these manufacturers should not be aided by government on the fact that most of the British car industry is in foreign hands, and now British car industry is a victim of its own efficiency. In the beginning of the year factor... ready to claim that these manufacturers should not be aided by government on the fact that most of the British car industry is in foreign hands, and now British car industry is a victim of its own efficiency. In the beginning of the year factories from Sunderland to Swindon were giving out cars at an amazing rate. But slowly and gradually there was hardly anyone to buy them and the car industry had numbers of unsold cars due to the recession (BBC, 2009). Car manufacturers tried their best to attract their customer through their dealerships but they failed to achieve their goal as no one took advantage of this, and now number of vehicles remained unsold. As a result factory shutdowns increased in the country and the downfall of industry started. However, Nissan saved Sunderland after ship building industry buckled, but not others. The effect of recession on car industry is so much that it's production has fell immensely down from 47.5% to 58.7%(vehicles of private use) and from 56.7% to 59.9%(vehicles of commercial use).Therefore to avoid any further loss the Society of Motor Manufacturers and Traders(SMMT) decided to shutdown Ford Aston Martin and Vauxhall for a short period of time while Toyota is also thinking to pause it's production. SMMT also demanded for an assistance of 2.3billion pound by the government. This decision was taken on 20th February 2009 (Hart, 2008). Then Chief executive of Society of Motor Manufacturers and Traders(SMMT) Paul Everitt said that decline in car industry and it's production and the shutdowns of the industry has shown that it is hard to survive without the assistance of government. The effects of recession on car industry has reach to a critical stage, and due to this job cut down has been started for a