Jaguar Land Rover claims car industry crisis is 'national emergency' for UK

The boss of Jaguar Land Rover has claimed that the UK car industry is facing a "national emergency" as new figures showed that production tumbled by a third last month. [/align]

97,604 cars were manufactured in the UK in November, 33.3pc lower than the same month in 2007, figures from the Society of Motor Manufacturers and Traders (SMMT) showed on Thursday, with the "rapid slowdown" down due to a fall in global demand and the lack of available credit.

SMMT said the industry faces "unprecedented challenges" and requires "urgent action".

The crisis in the car industry is posing serious financial problems to carmakers and Lord Mandelson, the Business Secretary, has confirmed he has held talks with Jaguar Land Rover, which employs 15,000 people in the UK, over the possibility of state aid for the company.

David Smith, the chief executive of Jaguar Land Rover said on Thursday that it was still waiting for confirmation of the possibility of a bail-out but added: "We have however made it clear that we fully support the Society of Motor Manufacturers and Traders call for a range of support measures for the car industry – suppliers, manufacturers and dealers – as has been forthcoming in other countries.

"The SMMT have made it clear that the situation in the UK is a national emergency requiring urgent action. We believe that Jaguar Land Rover plays a critical role in the car industry in the UK, supporting up to 75,000 jobs in our own business as well as our suppliers and dealers, and spending around £3bn a year on research and development and purchasing in the UK."

Midlands-based Jaguar Land Rover was bought for $2.3bn (£1.5bn) by India's Tata in June. Lord Mandelson has insisted that the Indian conglomerate has primary responsibility for the carmakers financial requirements.

Paul Everitt, the SMMT chief executive, said: "The UK motor industry is facing unprecedented challenges and urgent action is now required. The sector has seen falls in demand, extended plant closures and the first signs of redundancies in the supply chain.

"Without swift action and the ability to access credit and finance, significant damage will be done to the nation's industrial capability – leaving the UK poorly equipped to take advantage of any global growth when it returns."

Carmakers across the world are being hurt by the financial crisis with Japanese groups Honda, Nissan and Toyota announcing cuts in production.

The big three carmakers in the US – General Motors, Ford and Chrysler – are tumbling towards bankruptcy amid continued political debates over whether they should receive financial aid. Chrysler announced on Wednesday that it is to close its North American factories for a month.

Source: http://www.telegraph.co.uk/finance/newsbysector/transport/3833457/Jaguar-Land-Rover-claims-car-industry-crisis-is-national-emergency-for-UK.html

 

If JLR is hurting that badly, they should ask for some support from Tata and cut jobs. It is a company's responsibility to manage its resources. It is obvious that there is very little demand for new vehicles right now, and it is time for all car makers to start cutting back production, and unfortunatley to also cut back employment. Recessions are a natural part of the business cycle and simply throwing money at a recession will not solve it. If JLR hopes to survive the recssion they need to sell assets, cut employment and production. I don't think it is an emergency, emergencies are when aircraft engines fail in flight, not companies. I think the UK government should support JLR but, only if they are willing to drastically cut back. It didn't seem that the big three in the US were making much of an effort to cut back and restructure, so I am not in favor of giving them billions just so they can keep their current infrastructure. I think that rather than a bailout, the government should make them tax exempt for a year unless, they seriously consider abolishing the UAW and establishing some reasonable wages and not 73 an hour. Just out of curiosity does anyone know what the average assembly line worker at JLR makes and whether they are ized too? I have a feeling they are ized but, just wondeing about their pay.

 

Tax exempt would be a very goodidea. The Indian government should be willing to help here also.