Most people know the current financial situation has hit the world very strong, almost every sector has felt the wave of destruction that the economic down fall has brought to us. This being told there are some niches that are suffering more than most and this can honestly be said for the car manufacturing and salesmen. The market is at its lowest point for decades with the sale of new cars dropping a dramatic amount.
But now Lord Mandelson, the business secretary has sprung in with a big bail out package of around 2.3 billion sterling. Although this will have a major good effect on the global situation via people still being in there jobs and the push of manufacturing new transport, I feel it could have a worse effect in the long run.
Don’t get me wrong I am all for rescuing out great companies that have mis judged the credit crunch and not budgeted around it, but I do not feel this is the same for most of the car sector. Folks are not buying vehicles, its not as people have there cash stored in an industry like the banking sector, which permanentley gets a rescue package. I say that if the product that a company is selling is not doing nice than that surely is completely down to the business not meeting the demands of the industry.
Most people these days do not want gas guzzling machines such as the BMW’s for two reasons, firstly because people explore a lot and it will cost them much more and secondly is that they publish to much harmful gases to the world hurting the environment. Therefore this is the reason that these companies are struggling, not because there finances are out of shape it’s simply because there product is not selling and probably will not sell even after the bailout.
Althoughit is nice for people to bail out all these companies, in some ways I see the credit crunch as a positive ore. It’ ll ultimately eliminate all of the negative bits of crowded markets and when this is all over we may see a new great breed of car manufacturers coming through, that could in fact reinvent the way we control and perceive vehicles, the new technology could end up taking us to new levels and making vehicles a lot safer and comfortable to drive around in.