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is this enough money for the industry to hault joblosses and to help it recover
http://latestnews.virginmedia.com /news/uk/2009/01/27/car_industry_ to_get_support... copy

is this a good way of spending tax payers money
asked in taxpayers, money, car

blacksmith81 answers:

This article makes it abundantly clear where the government's priorities lie in terms of this countries economy. Money first, everything else can wait. As long as the City are happy, nothing and no-one else matters.

For the last 30 years, the economy of this country has relied less and less on adding value, becoming more focussed on merely adding cost. That situation has never been sustainable and never will be, IMO.

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BOBO174 answers:

If a Business is inefficient it should be allowed to go to the wall in whatever field. The government fears committing political suicide in this area but hey what car manufacturers are British Owned? What is to stop them using this Capital injection to protect jobs at home?

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wumpus answers:

It might protect a few jobs in the short term.
But a lot depends on what terms the government imposes.

Ultimately, Jaguar/LandRover are building cars which are expensive to buy and expensive to run.

In a society which is having to tighten it's collective belts, the demand for such vehicles is likely to be much reduced. This is a far bigger issue for them than a short-term cashflow problem.

But it's a long time since we had a truly British-owned car industry anyway.

Our biggest UK-owned manufacturer is LTI - London Taxis International.
Second is Metrocab.
After that, I think you're getting into kit car manufacturers like Potenza.

Which might sound a bit like jingoism but isn't.
The way I see it, we're investing in these industries to save jobs in the UK, but the majority of the profits go abroad.

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