David Wighton: Business Editor’s commentary
Download 'Too Hot', an exclusive Specials track from iTunes
A couple of months ago Richard Lambert was calling for an industrial route map for Britain, raising suspicions about possible dirigiste tendencies.
But yesterday, the head of the CBI made clear the limits of that route map and in particular the lack of space on it for the car industry. While carmakers around the world are calling on their governments for bailouts, Mr Lambert is urging Downing Street to resist appeals for special treatment.
The Society of Motor Manufacturers and Traders (SMMT) this week asked the Government for a range of measures including loans. The trade body is coordinating the industry’s response to the economic crisis although the picture is very mixed among the various companies.
Few think that Toyota, which today starts production of the new Avensis in Derby, will be holding out the begging bowl. But fears hang over Vauxhall because its parent, General Motors, has cautioned that it could run out of money within weeks. Vauxhall’s German cousin, Opel, has already asked the German Government for cash should its lifeline from GM be cut and has secured an offer of €500 million.
Other European countries are signalling their readiness to back the motor industry. Both France’s President Sarkozy and Italy’s Prime Minister, Silvio Berlusconi, are supporting the idea of a European fund. But Mr Lambert insists that it is not the government’s job to single out particular sectors for special treatment and points to the dismal record of British government attempts to pick winners.
Efforts to support the car industry in the 1970s were particularly unsuccessful as British Leyland lurched from disaster to disaster. The SMMT and its members would argue vigorously that things are very different in today’s tougher, leaner, more global world.
But the last big government involvement in the car industry came only eight years ago when Stephen Byers, then Industry Secretary, balked at private equity plans to scale back Rover cars. He helped to engineer a more politically acceptable solution by assembling a rival bid with a band of local businessmen with union backing.
Three years after the subsequent collapse of MG Rover, an investigation into what went wrong is still continuing. But it was hardly an advertisement for government intervention.
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£24,250 - £30,346
MI5
London
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
No way should these foreign firms get bailed out at the British taxpayers expense. The Government withdrew a bridging loan for MG Rover (a British company then) at the 11th hour in 2005 when a merger with SAIC seemed on the cards. Vauxhall and the rest of the motor industry is now in foreign hands.
Simon Robinson, Burnley, England