David Wighton: Business Editor’s commentary
Attend an evening with Andre Agassi
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.
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
With rail travel in Europe on the rise, we review the benefits of travelling by train
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
1998
£47,955
12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09
Check your free Experian credit report before applying
Car Insurance
to £60K + bonus (OTE £90k)
Lord Search & Selection
Location Flexible
PwC’s Consulting practice helps businesses of all shapes
and sizes work smarter and grow faster.
£85k
CPA
Highly Competitve
Specsavers
Whiteley, near Southampton
Moments from Battersea Park.
For sale with Winkworth
Find out about shared ownership.
See your free Experian credit report beforehand
Book now & save over £100pp.
11 cool resorts, lowest prices... Early Booking offers 15 Nov.
20% off selected Azores holidays taken in October with Sunvil Discovery
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
World Class Golf, Spa and preferential Beach Club. Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf
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 | 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.